Fashion Design: Thinking Across Boundaries Margaret Hallet University of Connecticut School of Law May 2008 Overview Prevalence of Copying in Fashion Industry Impact of Technology on Copying Where Does Fashion Fit Within Various IP Protections? Current Status of IP Protections Available to Fashion Designers Impact of Low-IP Equilibrium in Fashion Industry Where Do We Go From Here? 2 Prevalence of Copying in the Fashion Industry Widespread and largely accepted Large retailers like H & M and Zara actually specialize in copying Trends are created by copying and remixing designs 3 Impact of Technology on Copying Digital photography Digital design platforms Internet Global outsourcing of manufacture More flexible manufacturing technologies H & M Designer Allen Schwartz declares that he has “collections that emulated runway trends, which would be delivered to stores so quickly, they beat other major designers to the racks.” 4 Zara Spanish retail chain that uses a proprietary IT system to shorten their production cycle. Company receives daily email streams from store managers signaling new trends, fabrics, and cuts from which its designers quickly prepare new styles. Fabric is cut in an automated facility and sent to workshops. High-tech distribution system ensures the finished items are shipped and arrive in stores within 48 hours. Entire process takes 30 days (most competitors take from 4-12 months). 5 Independent Designers Favianna Clothing company manufactured copies of designer dresses worn by celebrities at the 2006 Emmy Awards three days after the event. Narcisco Rodriguez Rodriguez designed Carolyn Bessette Kennedy’s wedding gown. One copyist sold 80,000 copies. Rodriguez was only able to sell 45. 6 Application of IP to Fashion Copyright Trademark Trade dress Patent 7 Copyright EU: IP Protection based on © law US: Most promising form of protections needs only to be “original” – much lower bar than “novelty” No filing requirement; protection is secured automatically when the work is created Lack of protection stems from rule largely denying © protection to the class of “useful articles” Sketch may be protected, but not actual garment © law does not apply since the article’s expressive component is not separable from its useful function 8 Trademark Useful when a fashion design visibly integrates a trademark to an extent that it becomes and element of the design Ex: Burberry’s distinctive plaid Ex: Louis Vuitton handbags covered with “LV” mark For a majority of garments, the trademarks are not visible or only subtly displayed (on buttons, tabs on side or back of item) and, therefore, do not prevent design copying. 9 Trade Dress Limited to non-functional design elements that are “sourcedesignating” rather than merely ornamental. U.S. law: Wal-Mart Stores, Inc. v. Samara Bros., Inc. held that product design “almost invariably serves purposes other than source identification.” Someone seeking TD protection for any product design is required to show that the design has acquired “secondary meaning.” To meet this requirement, a designer must show that “in the minds of the public, the primary significance of a product feature or term is to identify the source of the product rather than the product itself.” 529 U.S. 205 (2000) Standard is hard to meet in fashion industry, especially by new designers due to costs, time, and uncertainty. 10 Patent Substantive Issues: Design patents are limited to designs that are truly “new” & must be novel and non-obvious Does not extend to designs that are merely re-workings Design patents sometimes encounter problems with functionality Procedural Issues: Process of preparing a patent application is expensive and lengthy Design patents are too slow given the short shelf-life of most fashion designs (often more than 2 years) Uncertainty (approx 1/3 applications denied) 11 Current Status of IP Protections Available to Fashion Designers France “unity of art” approach Protection is provided under sui generis design laws and © laws 1994 – Yves Saint Lauren successfully sued American designer Ralph Lauren from copying a popular design for a tuxedo dress in French court under © law in Societe Yves Saint Laurent Couture S.A. v. Societe Louis Dreyfus Retail Mgmt. S.A., [1994] E.C.C. 512 (Trib. Comm. (Paris)). 12 Japan Protects the form, pattern, or color of an object Requirements include: visual appeal to aesthetic sense, industrial usability, novelty, ease of creation, and uniqueness Length of protection: 20 years Registration takes an average of 6-7 months No fashion designs listed as registered on the Design Gazette (where registered designs are published) 13 EU Protections Created uniform design protection for fashion designs Unregistered Design must be new and give an overall impression different from known designs Design = “the appearance of the whole or a part of a product resulting from the features of, in particular, the lines, contours, colors, shapes, texture, and/or materials of the product itself and/or its ornamentation” Protects against deliberate copying Term- 3 years starting from date on which the design is first made available to the public in any of the 25 countries of the EU Registered Protect against both deliberate copying and the independent development of a similar design Term – 5 years, renewable for 4 additional 5 year renewable terms 14 US Proposed Protections Design Piracy Prohibition Act (H.R. 5055/H.R. 2033) – currently pending Expansion of vessel hull protection provided in Ch 13 of the Digital Millennium Copyright Act Would provide limited © protection to fashion designs Fashion design = “the appearance as a whole of an article of apparel, including its ornamentation” Must be attractive or distinct in appearance to the purchasing or using public Term of protection – 3 years Registration – creator must register the design within 3 months of the design’s publication 15 International Agreements Berne Convention for the Protection of Literary & Artistic Works Preable provides that signatories are “equally animated by the desire to protect, in as effective and uniform a manner as possible, the rights of authors in their literary and artistic works.” Does not include fashion design in its list of what falls under “literary or artistic works,” but some have suggested that it is implied Interpretation has not yet been addressed by WIPO, which acts as the administrative arm of Berne Only applies to the extent such protection is afforded to nationals under a country’s own domestic regime. 16 International Agreements (cont) Trade-Related Aspects of IP Rights (TRIPs) Seeks to harmonize international IP rights by setting a minimum level of protection each signatory government must provide Article 25(2) states: “Each Member shall ensure that requirements for securing protection for textile designs, in particular in regard to any cost, examination or publication, do not unreasonably impair the opportunity to seek and obtain such protections. Members shall be free to meet this obligation through industrial design law or through copyright law.” Under narrow reading, US is in compliance due to limited TM and © protections available Under broad reading, it may be construed that signatories must provide IP rights equivalent to those given to other artists; in this case, US would be in breach 17 Impact of Low-IP Equilibrium in Fashion Industry Impact on economy Benefits to industry as a whole “The Piracy Paradox” Induced obsolescence Anchoring Negative impact on SMEs 18 Impact on Economy Knock-offs provide less expensive copies and have economic utility IP protections will slow the fashion cycle leading to higher prices to offset lack of demand for new trends Licensing costs resulting from IP protection increase prices IP protections did not negatively affect other industries such as music and film 19 “The Piracy Paradox” Introduced by Kal Raustiala & Christopher Sprigman Copying fails to deter innovation in the fashion industry because copying is not very harmful to originators, and may actually promote innovation and benefit originators. Reasons Induced obsolescence Anchoring 20