03 June 2012

Infringement for the love of fashion

Consider this another one of my educational intellectual property posts. The take away is similar to my previous fashion law posts: in fashion, imitation can be seen as infringement--not flattery.

I found these blinged out iPhone cases on an Etsy's seller's page and made a collage out of them for your viewing pleasure. From the looks of it, the seller, slave2beauty, is truly talented. Unfortunately, these glam cases are okay for personal use but turning a profit on someone else's intellectual property? Not so okay.
I am reposting these images under my Fair Use rights, not to be confused with copyright infringement! 
    
How do these cases tie into intellectual property (IP) issues, and particularly fashion law?
Well, if you have not guessed it, trademark law is implicated here.

I wonder how long this user will make these cases before receiving a cease and desist letter*. Not long if someone forwards my blog post to Mr. Pantalony (the lawyer who sent U Penn Law School a cease and desist). Slave2beauty opened up shop March 6, 2012 so it is likely that her work just has not yet come to the attention of relevant IP owners. I think Louis Vuitton and Lady Gaga rigorously police their brands, so the death of these cute infringing phone accessories may come soon.

Would you buy accessories like these even though they do not support the brand owner? 


I am not afraid to say that I report on counterfeiters all the time. Maybe one day I will get paid for it too! ;) Lucky for Etsy companies, Etsy asks that claims of infringement be signed by the IP owner or person authorized to act on behalf of the owner, which is on par with the Digital Millennium Copyright Act.

I do not feel badly about the infringer getting stopped from profiting off of these works but I do wish there were more flexibility in the fashion world, wherein a person like this Etsy seller could easily pitch ideas of these creations to brands. It is just that allowing/licensing people to trademarks is dangerous for brands. It is dangerous because brands may lose track of how their trademarks are being used and even if they develop a contract with a second user, wherein the IP owner is not liable for torts arising from the second user's products, the IP owner can get a tarnished image from bad use. Also, if trademark owners do not exercise quality control they lose their trademarks.

A trademark owner who wants to license use of IP must also be careful that the second user will not be considered a franchisee. A franchising relationship would be bad for the IP owner because it is difficult to get out of such a channel relationship: If a court determines that it is a franchise agreement, it is hard not to renew the contract when it expires. A front-end negative consequence of a determination that a franchise agreement exists is that the trademark owner is supposed to provide the franchisee with  an offering circular with all risks. The IP owner can get in trouble for not providing proper franchising material.

Although this Etsy seller might think she is paying homage to popular brands like Louis Vuitton, Chanel, MAC cosmetics, Swarvoski and Lady Gaga, using these trademarks without permission of the trademark owner is trademark infringement.

Any of these aforementioned brands can bring a successful lawsuit against someone making products like this Etsy user. Let's say the user thinks she is not doing anything wrong because she is not actually making a counterfeit of an existing item. To that, I say trademark infringement is not synonymous with counterfeit. When a trademark is used in connection with products or services in a way that may lead a viewer to think the product is connected to the brand the possibility of a problem exists. The person doing the buying does not have to be the party being tricked. Like with these phone cases, the people buying from Etsy most likely realize the lack of connection to the designer. Yet someone who sees this case in use by another person may mistaken the case for being one made by the brand. If quality is a problem then the viewer may falsely attach the negative quality with the brand. On the other hand, if the brand sells or wants to cell such accessories the products pictured above might compete with the brand. This is one of those situations where ignorance of the law is not an excuse.

Do you agree that products like these hurt the brand owners? 



♥ Thanks for reading and supporting my blog! 

*a cease and desist letter is a notice sent by the IP owner or representative to stop use of IP. See this post.

49 comments:

  1. Love this post - very informational!

    I think copyright in fashion is getting infringe, left, right and centre! Hope you get paid for this someday too!


    oxo

    ML
    Twenty York Street
    www.twentyyork.com
    Follow me in Twitter: @20YS

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  2. These phone cases are extremely adorable but you are sooooo right, this is sooooo wrong to make money off of another companies logo.

    Damn impostors!

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    1. Thanks for your opinion! Glad you can see past the cuteness factor to see the wrongness! :D

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  3. Why does something so wrong have to look so good? Oh and no I would not buy them although they are cute. I see them as fake but also too expensive at $80 HA!

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    1. Thanks for your opinion and LOL, yes that is quite pricey.

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  4. IDK...I mean this is a blatant fake, Chanel does not make blinged out iphone/android cases. But it is really cute :) But for $80...I don't think so! To answer your question the blouse in my post today is 3 years old so I don't think you'll be able to get it. The back is entirely seersucker so it does stretch! BTW...it is actually a halter blouse but my Mom pinned the straps to give it the criss cross effect ;)

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    1. Thanks for your comment and the shirt info B!

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  5. I think more designers need to watch the market closer. No only can they catch these kinds of infringements but they can also get a better understanding of demand within the market.

    http://thelacquerfactor.com

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    1. I think you are right about designers watching the market. I am all for designers fighting fakes but they can definitely take some knock offs as hints as to what the public wants. :)

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  6. I really like this post, it's very informative and you brought up a good point. I don't think it's right. Making it for your own personal use is one thing but profiting from it is another thing...I know it's just a small phone case but it's no different than a fake LV or Chanel.

    www.KTRstyle.com

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    1. Great, I'm so glad you think so and agree <3

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  7. This is very true, I agree it's out of order though she's obviously talented as they look good - such a shame, thank you for your comment btw!

    http://Heidi-likes.blogspot.co.uk

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  8. Agree....the stuff all look fun & cool but really scary when we come to think of trademarks!

    Rebecca
    www.redtagchiclosangeles.com

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    1. Thanks for your comment Rebecca.

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  9. I've read about stores like Topshop who copied designs from young designers without paying them a cent. And then there are counterfeiters who blatantly copy and pass the fake as the genuine article.

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    1. Yes, you're right about top designers having used designs created by up and coming designers. Infringement can be found on all ends. :-/

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  10. These are adorable but like you I worry about the copyright issue - would love it so much more if it were a unique design of their own!

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    1. Yes, the girl would probably do well to start her own type of branding instead of using another's mark.

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  11. Nothing bothers me more than a fake. Back when I studied in France we discussed the economic consequences of copyrights. Consumers often don't consider it and a small time infringer may not be a culprit, but behind many large scale infringement business are inhumane labor conditions/wages, child labor, drug trades, and terrorism. Even if you're don't care about the luxury brands who images are tarnished from infringement, think twice before you purchase if only to stop the cycle of crime behind it.

    There's my two cents.

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    1. Ahh, a fellow former French student :D
      You are totally right and I feel that America might change in the future in that at least copyright and patent infringement may be taught as a wrong in primary schools.

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  12. Hi, darling! I just want to let you know that you're one of my picks for the Laine Blogger Award! Check it out on my blog! (:

    http://jbperez4.blogspot.com/

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  13. Hi,nice blog. I invite you to participate to my GA,it is open internationally.You can win a golden mask 23 carat. http://glossylala.blogspot.co.uk/2012/05/6-months-celebration-giveaway-open.html
    I wonder if you would like to follow each other:)

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  14. i agree that for a personal use they are fine, but not for profit

    brett

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  15. I'd love to have REAL designer cases but unfortunately that isn't in my budget. I don't think it's ok for people to make money off of someone else's brand, but there will always be a market for it.

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    1. I too think there will be a continued market for sure, so long as penalties for selling or buying counterfeits or infringing goods is not made harsher.

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  16. Hell yes. These are the cutest iphone cases ive ever seen!!!
    ahhhhh

    http://missbitchxox.blogspot.com

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    1. Lol, thanks for the honest and funny answer!

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  17. I love your posts like this because it's very interesting to learn about the law side of fashion! These posts are very unique.

    To answer your question:

    I could never buy a fake/imposter/replica of anything! First of all, I can tell when an item (such as a handbag) is fake, and I'm pretty sure most people who own the real thing can also tell. My thought on fakes is they're a waste of money because the people who actually know what Chanel/Louis Vuitton/Gucci/Burberry is, can spot the fake, so you're not impressing them, and most others don't even know what Chanel/Louis Vuitton, etc. is, so you're not impressing them either. My advice to others is to use that money and buy a nice looking durable non-label bag instead, or save your pennies until you can afford the real thing!

    Second of all, I could never buy a fake for the reasons Bonnie posted above. I don't like that purchasing fakes can potentially fund shady behavior, and I hope that if others won't consider NOT purchasing a fake out of respect for that label, that they'd at least consider not purchasing the fake so as not to support criminal behavior.

    I do agree the products the Etsy made were cute, but if he or she has that much talent, I am sure that person could come up with an original design of his or her own!

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    1. Alexia, thanks for the thoughtful post. I have a similar mindset as to fakes. I just do not understand why people buy the fakes. If it is because of "appreciation" for a brand I would feel guilty for buying something that could hurt the brand. If it is because they cannot afford the brand, to me it would only serve as a reminder of what I cannot have plus an inferior version would not make me feel better. Like you I think a durable non-label one is the better choice. A great choice in fact!

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  18. yeah i saw this...but i think is not correct buy some fake...
    what do you think about following each other??:D

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  19. I would never ever buy accessorie that is not original!!

    *GIVEAWAY* - win CrazyDogTShirts.com $15 gift card!!!

    just JE NE SAIS QUOI
    Independent Fashion Bloggers
    Follow my blog with Bloglovin
    about.me/Jesika

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    1. Thanks for leaving your opinion!

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  20. omg! i have new iphone and i want all of the hahaha! great blog i follow ;)

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  21. i'd like to say no, but i might if the original was too expensive.

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    1. Thanks for your comment. I honestly don't apprehend this type of thinking but I hope maybe I can change that type of thinking with continued education regarding counterfeits :D

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  22. this is such an interesting post! it just reminds me of so many other shops (both local and online) that sell similar merchandise, such as fake designer necklaces and clothing with the Chanel logo on it. I'm wondering if the reason this still occurs (quite openly and frequently) is because the actual infringement, of using the company's trademarks and/or artistic works goes on in factories in China and other Asian countries, and the relevant country eg the US has no jurisdiction over there (at least for infringement cases). in this case I guess that problem would not arise as it's likely the maker of these iphone cases is doing so somewhere at her American home.

    what do you think of the seller posting a clear disclaimer saying she is in no way affiliated with Chanel or any of those brands, and the designs are not to be associated with the other companies? do you think that would be accepted? also what do you think of her refusing to take her products down and other steps required in the cease and desist letter, if one is indeed sent to her? if she doesn't and they contact Etsy and they don't do anything, could Etsy be sued for authorising infringement? ooh and what defences do you think she might have?

    haha wow I'm so sorry for asking all these questions! you don't have to answer all of them! :P I'm just really curious because I'm also a law student and all this stuff has so much relevance. It would be interesting to see how the law operates in the US (assuming you are American, because you mentioned "fair use"- over here we refer to "fair dealing") and I'm thinking of taking a Trademarks and Patents course next semester.

    metallicpaws.blogspot.com

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    1. Thanks for your awesome and thoughtful questions! I appreciate your enthusiasm! It can definitely help stir up new topics for me to cover in future posts! I am glad to have someone posing such questions. To start, I want to be clear that my view is from American education and laws (unless I state otherwise). And I definitely suggest you take trademarks and patents! They’re both fun topics!!

      As to merchandise being made outside of the country, much of it is made outside but within the U.S. fakes are also made. Also, some are shipped into the U.S. without the infringing logos (although the items do not necessarily need a brand affixed to them to be infringing, think trade dress). Some of these packages get by customs but some are caught (when intentions are clear, especially if the set of logos to be affixed are in another container in a given shipment). If customs agents find these they will seize the goods, which your question about jurisdiction. The infringement problem goes on as long as the product is in use, sold, viewed, etc. So, making it, selling it, or buying it elsewhere would not mean actual infringement is not going on. (Think of a case of defamation per se, where there is an allegation that attacks a person’s professional character. Even if you write the statement on a neon tote bag while vacationing in the South of France, when you wear it in the U.S. you are still defaming).

      Now, stopping the warehouses in another country cannot be done using U.S. laws but IP laws of the particular country apply.

      When sellers post clear disclaimers that they are not affiliated with the brand although they are selling goods they made with a brand’s trademark, it is equivalent to putting up a sign that you are selling fakes.

      Saying that the goods are not to be associated with the original brands would just look like a joke. It would still cause damage to a brand. And there could still be a likelihood of confusion with someone who sees the goods being used by the purchaser who was on ‘notice’.

      As for the cease and desist, I think (especially smaller time) sellers would not even be in a position to argue that with any success. Particularly when the trademark is a blatant use (rather than the use of a brand’s look and feel or trade dress) the infringement is clear to all, especially a Judge who would likely throw an injunction at the seller quicker than the next sale came in.

      Since Etsy is mostly used and created for non-infringing matters, it would have a good excuse against claims brought against them. (Etsy is more like Ebay than Napster.) Also, Etsy does have the Digital Millennium Copyright Act notice on its website. As such, once copyright infringement is brought to their attention Etsy would have to take it down (at least until it is proven by the user that they have the right to use the allegedly infringing material). If Etsy were to not comply with the DMCA then they can be liable.

      I hope I covered it all <3

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  23. I actually would buy one but they're $70 and she doesn't have one I like. lol

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    1. Again, another honest answer but ouch, I hope to change your view ;)

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  24. I'm afraid to say...but I probably would've bought one of these on an "impulse" buy just cause they are so cute. But now I know better! Thanks for the post.

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    1. That's lovely to hear! I'm so glad to spread some education on the topic to help you be a more thoughtful consumer <3

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  25. I don't knwo what to say... Those are really beautiful and completely adorable things, but as a jewelry designer by myself I wouldn't like anyone to take my logo or anything without my permission... Great post!!!!
    xoxo
    Jelena

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