Why IDPPPA is going to KO the Business of Fashion

Apparel manufacturers.  I am worried about the Innovative Design Protection and Piracy Prevention Act ("IDPPPA") and so should you. 

Do you know that last week WWD predicted a 10-15% rise in the wholesale price of fashion products for spring 2011? Or home sales are down 27% this year and unemployment remains about 9.5%? Or that cotton costs are up 32.2% and analysts are predicting dim holiday sales?

The last thing our country, its fragile economy and the apparel industry needs is more legislation that is guaranteed to drive up the cost of fashion products.  IDPPPA would do just that. 

How?  By giving fashion houses with fat litigation budgets the opportunity to convince judges that their designs are uniquely different from anything that has ever been made before.  If you know your design history, or even have worked in the fashion business for awhile, you know how hard that standard is to meet. 

But this is America and everyone is "entitled" to their day in court.  Plaintiff's lawyers (working on a contingency) are creative and judges historically interpret copyright law expansively.  Companies all along the supply chain would pass off the cost of litigation to the retailer purchaser.  Just what the country needs right now, right?

And the harm of IDPPPA doesn't stop there.  Since IDPPPA requires a plaintiff show that a defendant had "access" to the alleged copied products, designers would have to stop:

  • reading fashion magazines;
  • shopping retail stores or attending trade shows;
  • watching or subscribing to trend reports, or
  • caring about the runway shows.

If they do, designers will be prohibited from claiming that their designs are the "result of independent creation."   Another hit our economy doesn't need.

So, if you want to influence the process, now is your chance!  Call your congressmen and senator today. 

Otherwise, you'll have no right to complain when it costs more for clothes for you and your family, or when an unscrupulous plaintiff (think of the ones we see making fabric claims) sues you.

Take action now!!!

 

Do you have a hobby?

Crazy question for a fashion law blog, but coming off the week we just had in Magic, we all need recovery (and no, I am not talking about the Lindsay Lohan kind).

When I talk about recovery, I mean you need to do something that you do purely for fun -- something that has nothing to do with work or family, your health or any other "obligation."

Otherwise, you'll lose your passion, your creativity and your focus.  A hobby is the only way to avoid burn-out.  Sounds nuts right?  I thought so too until:

  1. a mentor gave me The Power of Full Engagement by Jim Loehr and Tony Schwartz; and
  2. I found a hobby and became a believer.

Here is what the Power of Full Engagement says:

Most of us are just trying to do the best that we can. When demand exceeds our capacity, we begin to make expedient choices that get us through our days and nights, but take a toll over time. We survive on too little sleep, wolf down fast foods on the run, fuel up with coffee and cool down with alcohol and sleeping pills. Faced with relentless demands at work, we become short-tempered and easily distracted. We return home from long days at work feeling exhausted and often experience our families not as a source of joy and renewal, but as one more demand in an already overburdened life.

 

Power of Full Engagement then offers the solution:

The number of hours in a day is fixed, but the quantity and quality of energy available to us is not. . . If you learn how to how to create a balanced energy expenditure with intermittent energy renewal, meaning developing "recovery' techniques into your day and week, you will increasing your ability to perform under pressure. . . Above all, this book provides a life-changing roadmap to becoming more fully engaged on and off the job—meaning physically energized, emotionally connected, mentally focused and spiritually aligned.

Pretty awesome right?

And trust me, the book delivers on its promise.  I have always been good a managing my time and "pushing through," even when I was exhausted.  But now, even the tough stuff doesn't wear me out anymore because I take some time for my "hobby" every weekend and have some recovery time built into my day.

Try it.  A hobby will change your life.  Trust me on this -- it just recently changed mine. 

photo credit:  Ritchie Gaonas

p.s.  Just in case you can't remember my hobby, here is a video clip from two weeks ago.  And if you want to see what this trick is suppose to look like, check out Ritchie here. [video]

 

West Coast is Not Playing around with Counterfeit Goods!

by: Cassidy Saitow

On Friday, the California Apparel News reported that a major shipment of fake True Religion jeans was discovered in a random search of incoming cargo. Authorities unveiled over 21,000 pairs of jeans that were disguised under Tuff Made USA labels and false metal button covers. Underneath were counterfeit True Religion brand labels and True Religion embossed button heads. The street value of the contraband is $1.5 million dollars, and if sold at full price, the jeans would be worth $6.2 million dollars!


While it was a random search, this huge stop does show the Port of LA means business, and is going to keep a watchful eye out for counterfeit goods.


Here are a few other things you can do to help out the ICE and Border Patrol officers:

  1. Centrally ship your product from the same location so that authorities know the chances its genuine are better when it comes from one place;
  2. Keep authorities up to date on what your product looks like and how counterfeiters are trying to fake your genuine product. For example, True Religion knows that counterfeiters actually cover up the fake True Religion "made in the USA" labels with other brand labels, as they did here. Their brand enforcement people train the authorities at the Ports to look extra closely at goods to determine authenticity; and
  3. Trademark and copyright the aspects of your product that you can, as the more protection you have, the more chance you can enforce your rights. There's a reason why True Religion jeans have T's and R's on the rivets and the Buddha all over the pocket bags: they are marketed as design features, but are actually critical components of the jeans that are protected which helps give some recourse when they are full on counterfeited!

While this was just a random check, the scary thing is that True Religion spokespeople pointed out that an average consumer who didn't already have a pair of True Religion jeans could be deceived into thinking these were real.  I have True Religion jeans, and I'd hope I could distinguish the quality, but for the company to point that out shows just how valuable this seizure was.

Go Port of Los Angeles!!!

photo credit: CAN

Inspiration Requires Energy

Another Guest Post by Chris Riordan

It's way past my bed time on a Thursday night. I could:

  • stay up and slog through the work in front of me which is due at noon tomorrow or
  • go to bed early (and possibly inspire my wife to burn a few calories with me before lights out), crash and get some much needed zzzz's.

I pick going to bed early and I set my alarm for an hour early.  Why?

If you wake up an hour before you are suppose to, you can run 2 or 3 miles of interval sprints around the block in 1/2 hour (which is a 300 calorie burn), be back in time for a shower and to meditate on something positive before you need to be out the door (grape fruit in hand).

By going to bed early you just gave your brain and body some time to generate some fresh perspective for the project you're working on. The endorphin rush you feel from the run (because you got more than 4 hours of sleep) will keep you sane in morning traffic by reminding you that you are in some way connected to all the people in shinny metal boxes rolling 25 down the 405 next to you.

When you take the time to take care of yourself, you take care of every one around you too because when you feel good, you are faster, funnier, more forgiving and full of the inspirational flow required to finish the job, and everyone benefits!

All that from going to bed early? You bet your plastic butt Los Angeles, and you better start believing it too if you want to fit into those size 2's you are manufacturing for your fall line that you hope to wear to that high school reunion or that next fashion networking event.

photo credit: elev8 

 

 

Do You Need to Look Good to Workout?

Guest Post by Chris Riordan

When my wife first asked me to write this blog while she was in Vegas at Magic, Project & ENK (#WWDMAGIC) I thought, "do your own work party girl, I'm a personal trainer, what do I know about fashion, and the only thing I know about law is the ones I've broken".

I have 6 pairs of the same workout clothes, and two pairs of running shoes. I love routine, and they are the right clothes, and the right shoes. I get through the workouts without snagging some long baggy plant leg on a machine, or bike and hurting myself, and I look good in my uniform,( no yellow armpit stains) and when I look good I feel good too. In no way am I saying that our mental well being should be based solely on external appearances (you need help Los Angeles).

However, working out is 95% mental, staying positive with your thoughts and your words while you train is important. Saying you hate a specific workout while your doing it is like taking medication for a life threatening disease and saying "this isn't going to work," and your right, it won't. Not only that but a negative attitude could exacerbate a problem or cause an injury. Harsh huh?

A lot of people have messed up mental philosophy regarding workouts. In general workouts are looked at as a means to an end.  Instead of enjoying the actual workout people can't wait for it to be over. It's important to either learn to love the process, and stay in the moment, or find an activity that is exciting for you.

If your struggling with the mental battle take a day off of the gym, change your workout routine, get outside and get some air, learn to breath, find a new workout partner, change your clothes, or hire a personal trainer like me.

LIFE IS TOO SHORT SO HAVE FUN!!!

photo credit:  Modern Mom

p.s.Guys, if you need some tips on what to wear to the gym check out this blog.

Viva Las Vegas

So for those of you who don't know, Cassidy and I are in Vegas for Magic, Project, ENK, Pool and all the other shows running concurrently.  I had hoped to get a final post up before leaving LA, but President Obama and his security look down of Century City  cabashed that.

So, for now, please follow my show updates or tweets via twitter.  My "handle" is @staciriordan.  The Fashion Law Blog just got a flip so we will be posting all kinds of video content from the shows.

And as one last final reminder, I am moderating Social Marketing: Strategies for Customer Engagement, Product Research & Sales," a panel discussing social media marketing ideas and tools, and tips for fashion retailers and wholesalers today at 1:30.

Details: August 17, 2010, 1:30 PM I LAS VEGAS CONVENTION CENTER – NORTH HALL 2ND FLOOR, N261

Panelists include:

  • Macala Wright Lee, Principal – Fashionably Digital Los Angeles
  • Daria Shualy, CEO – Sense of Fashion
  • Crosby Noricks, Sr. Social Media Strategist –  Charlotte Russe
  • Daniela Zeltzer, Director of Marketing – XCVI Clothing
  • Carolyn Coles, Digital Culture and Innovation – Lululemon Athletica

We'll be discussing the overall evolution in social media marketing, how brands and retailers should can use online marketing strategies to build brand awareness, how to create meaningful online engagement with customers, how to use social communities for product development and research and how to effectively generate online sales.

Hope to see you there!!!

ps -- please come introduce yourself and if really want to have a fun conversation, as me about IDPPPA.

 

 

Compass, Time or Energy

I know this week is crazy for most of you -- finishing samples, finishing back to school distribution and getting ready to head off to your next rounds of trade shows.  In fashion, you always try to pre-plan, but when making your plans, just know there will be some last minute emergency.  While stressful at the time, you have to learn to love the process -- that's what makes this business fun. 

Sounds crazy?  Not really if you think about all the time we spend at work and dedicated to our jobs.  Remember, life is all of the moments that we are here on this planet -- not just weekends (or when we are not at work.)  If you are not passionate about what you do (and don't look forward to Mondays ) fashion may not be the right industry for you.  As we have discussed previously, to succeed in this business, you need determination, grit, belief in your moral compass, ear-plugs to drown out the jerks and naysayers and stamina.

Ok, enough preaching from me today.  Hope are a little bit inspired and ready to tackle the hard, but rewarding work in front of you.

photo credit:  alt text

ps -- If you will be showing in Vegas, let me know.  I would love to stop by and meet you!

My "Magic" Ball: Trade Show Predictions

Whether you are getting ready to attend your first or twenty first Magic, it is always an exciting time of year.  The energy and excitement is palpable when so many fashion industry movers and shakers gather in one place.  There are always surprises, new friends and new opportunities.

I always make a list of the goals I want to accomplish when attending a trade show or conference; then I write an action plan, or a plan of attack on how to meet those goalsDo you have goals for Magic/Project/ENK?? 

To start the process, I make predictions.  So this year, in hopes that you will write goals too, I thought I would share my predictions:

  • I predict that we are going to see innovation, talk about "curation" and crowd sourcing as well as new brands launching, surprises from our "tried and true" favorites and much more ordering closer to season (which means more immediates so plan your time wisely as you will be busy once you get back to your factories/offices!)
  • I also predict this quarter we will continue to see an uptick in fashion licensing and in acquisitions.  And, what excites me the most, will be the increase in fashion's participation in social media, social marketing and integrated websites.

So, from those predictions, what goals can your company set for this next round of trade shows?  And what steps will you take to achieve them?

photo credit: ©iStockphoto.com/Amanda Rohde via Texas State & Local Tax Law Blog

ps: I wrote this last weekend before WWD's story, "Is Fashion Ready to Break New M&A Ground?" was published.  It is worth a read and makes a great point about synergy and opportunities for companies at the cross section of fashion and technology.

 

Ready for MAGIC? 10 Tips to make sure you pull more that a Rabbit out of your Hat.

Guest post by: Cassidy Saitow*

How important is Magic? According to the Office of the US Trade Representative:

MAGIC is the preeminent trade event in the international fashion industry, hosting global buyers from every U.S. state and over 80 countries, including  sellers of men's, women's and children's apparel, footwear, accessories and sourcing resources.  It is expected that over 90,000 attendees from every state and over 80 countries will be present this year representing over 3,500 companies and 4,800 brands.  Attendees at MAGIC represent over $195 billion in U.S. consumer apparel sales and Private label marketers with $35 billion in purchasing power. 

Pretty important.  So what can you do to prepare? 

Magic's website offers a pre-show checklist so you can prepare, pack and plan your days there.  Our favorite top ten pointers are:

  1. Bring your business cards (A LOT!!)
  2. Know your best sellers
  3. Know your customer - talk to them before you go so you know what they want
  4. Read up on the trends - know what you're talking about!
  5. Go early
  6. Just like you do when you shop, make sure you browse every row of booths. You might score bigtime!
  7. Bring a mini stapler to staple business cards to linesheets and other information you want to keep together
  8. Write your order at the show if you're buying so you don't have to deal with it when you get home
  9. Make appointments with vendors you want to meet with before you go
  10. Talk to everyone!!! you never know who you're going to meet unless you ask!
Also, check out this video clip of what you can expect to see when you go to MAGIC this year.
 
Finally, be sure you attend the panel of awesome speakers discussing Social Marketing which Staci will be moderating on Tuesday at 1:30 on the 2nd floor of the North Hall of the Convention Center (Room: N261)!!!

photo credit: Vandini Magic

*Cassidy is currently a FIDM student and interning with me here at Fox Rothschild as part of her course work.  She is also the author of FIDM'S Merchandise Product Development Blog

BREAKING NEWS: New Design Piracy Bill Introduced into Sentate

Well, we knew it was coming.  Today, Senator Charles Schumer introduced the Innovative Design Protection and Piracy Prevention Act, or Senate Bill S. 3728 (IDPPPA).

While it seems that NY academics, the Council of Fashion Designers of America (CFDA) and the American Apparel and Footwear Association (AAFA) have signed off on this bill, I cannot find any indication that the people involved in the business of fashion, or fashion litigators were consulted.

From a review of the bill, I only see some small improvements over the last version:

  1. Home sewers are free to make copes of anything for personal use;
  2. The increased damages that were proposed under DPPA were stricken, leaving section 1323 unchanged;
  3. The Plaintiff will have to plead his or her case with particularity -- like a fraud cause of action now, for example.  This implies that the Plaintiff will have the burden of proof on those elements, but we'll have to see how the courts interpret that language; and
  4. The drafters have tried to clarify what constitutes infringement.  The new standard is "substantially identical," which means "an article of apparel" (which includes clothes, handbags and eyeglass frames and hats, among other things) "which is so similar in appearance as to likely be mistaken for the protected designs, and contains only those differences in construction or designing which are merely trivial."  HUH?

Here are the confusing parts: 

First, fashion designs will automatically be protected so designers don't have to register the designs with the copyright office, saving the designer a $35 fee.  Interestingly, Counterfeit Chic is touting this point as a victory, but to me, how could one verify that a design is "new and unique" if there is no public database to search? 

Also, most federal circuits require copyright registration as a pre-requisite to filing suit.  In legal terms, this means a plaintiff does not have standing to file a claim unless they have a copyright registration.  Is this bill trying to change that federal requirement?

Second, so many designers mistakenly believe that their creation is new.  But almost all the design we see these days pull inspiration from the art of past designers.  A great example is Diane Von Furstenberg and the wrap dress.  She claims to have invented it, but fashion history students know that McCardell introduced a wrap dress in the 1940's.

Third, only an article that is "unique, distinguishable, non-trivial and non-utilitarian variation over prior designs for similar types of articles," qualify as a fashion design.  As a member of the fashion community, I shrudder to think how a judge is going to decide THAT question.

In sum this propossed legislation ignore the realities of the business of fashion including the financial ramifications of such a law and would make judges the arbitrator of fashion.

For example, I see:

  • a ton of litigation as the courts sort this out.  Pleading with particularity is no game changer.  It only adds an extra round of litigation costs.  Added litigation costs will raise the price consumer pays for apparel, something definitely not needed right now because the cost of clothing will likely rise anyways due to increasing cotton and labor prices.  Do we really need the consumer to bear more cost increases when our economy finally seems to be rebounding?  OR 
  • No one will be able to create a "fashion design" that qualifies under IDPPA as written, making it needless and irrelevant.

So, while I wait to see how the rest of the industry reacts, I see this as a big win for lawyers and big companies with the resources to sue. For now, I stick to my previous position:

As a practicing fashion lawyer, litigator, former COO of apparel companies and the fourth generation of my family to work in fashion, law professors and politicians with no hands-on fashion industry experience should not be allowed to "fix" something that they have no practical knowledge of. 

 photo credit: CFA