Fashion Copyright Bill Dies in Congress

I hope everyone had a great holiday season and for those of you in the office, are having a smooth transition back.

2012 came to a crazy year end for Congress, and while they may have resolved the income tax portion of the fiscal cliff, they postponed the rest of the open issues until 2013.  We'll have to wait and see how that drama plays out in this first quarter.  But here is the good news:  the Fashion Copyright Bill, currently known as Innovative Design Protection Act of 2012 (S. 3523) (IDPA) or the Destruction of Affordable Fashion Act as we call it here at the Fashion Law Blog, has (once again) died in Congress.

Why? Because the 112th Congress has ended and the bill was not passed into law. 

What does that mean for the Fashion Industry? 

The status quo remains, at least for now.  My guess is CFDA darling Senator Schumer will introduce some form of the Act for a seventh time in this next session as this is one piece of legislation that just keeps desperately trying to live another day.

 

Fashion, Food, Football and Finance

Caught your attention, right?  What in the world does Fashion, Food, Football and Finance have in common?  And why are you reading about it on the Fashion Law Blog?

Well, all four industries are thriving, despite having very little intellectual property protection.  They are also covered in Professor Kal Raustiala and Professor Christopher Sprigman's new book, the Knockoff Economy (along with Magic and Comedy),

 

As you all know, there are those in the Fashion Industry claiming fashion designers need copyright protection, and you, faithful readers of this blog, know we are vehemently against such legislation, calling it the Destruction of Affordable Fashion Act.

In the Knockoff Economy, you will see studies that show in the past several years, high end fashion designers - those most vocally in favor of the new laws - have realized increased sales and increased profitability.  So, the authors argue, why change something that isn't broken? 

Oh, and let's compare fashion to the music industry for a sec.  The music industry has been given heightened intellectual property protection in recent years.  Now look where it is....facing the largest losses ever seen.

Is that the path fashion should take?  Nah.....Remember we innovate and set trends.

xoxo

Staci

ps -- the book would make a great holiday gift.  You can buy it here.

Redalert: Louboutin v. YSL Dimissed

Hi Y'all!

Well, YSL and Louboutin are in the news again. Just in case you missed it, here is what happened:

  1. Harley Lewin appeared on Bloomberg Law with Spencer Mazyck [see video below]. During the interview, Lewin claimed victory and predicted YSL and Louboutin would settle the action.
  2. His prediction came true, because today, YSL dismissed its counterclaims against Louboutin, which effectively ends the parties red sole battle (at least for now - again see Lewin Video, below).

Interestingly, in theBloombergLawpiece, which is totally Louboutin spin by the way, we learn two important things:

First, Lewin claimed that Louboutin's loss, was a win. Why? Because the Court of Appeal limited Louboutin's trademark. This is a win you ask? Lewin can claim so, yes, because the District Court was prepared to invalidate the mark completely. So which is preferred -- no trademark or a limited trademark? Clearly a limited trademark, hence Lewin's claimed win.

Yet this overlooks the obvious, while Louboutin may have exited this battled with its (limited) trademark, he still lost. Why? Because, as we said before, before Louboutin sued, his trademark was not limited to a red sole with a contrasting upper. If you end up with less then you started with, you definitely lost (at least how I keep score!)

Good job wagging the dog Harley !!!

Oh, and the second thing we learned in the Bloomberg Video? Lewin was referred to ChristianLouboutinby his good friend, and CFDA chairperson, Diane Von Furstenberg. Maybe that explains why Louboutin choose to challenge YSL's monochromatic shoe that looks nothing like a Louboutin pump.

Check out the Bloomberg Video here:

Fashion Copyright Bill moves to the Full Senate

So Congress was back in session for 5 days in September, which was just enough time to enact a temporary budget to avoid a government shut-down, and for the Senate Judiciary Committee to act on the Design Piracy Bill, or as it is known here at the Fashion Law Blog, the Destruction of Affordable Fashion Act.

Renamed the Innovative Design Protection Act of 2012 (S. 3523) (IDPA) when it was introduced into the Senate on September 10, 2012 by CFDA darling Senator Schumer, the IDPA was reported favorably out of the Senate Judiciary Committee on September 20, 2012.  IDPA now sits on the Senate's Legislative calander, waiting for the senators to come back to the "lame duck" session of Congress.  

Having reviewed the bill, we wanted to point out two changes:

  • First, a person/company is required to give notice to a potential infringer and then wait 21 days before filing suit.  Us fashion lawyer typically call this a "safe harbor provision."
  • Second, damages don't begin to accrue until notice of potential infringement is sent.  This should mean that the amount at issue is only sales made AFTER that date.  Right now, in fabric copyright cases for example, once a potentially infringing item is found, the plaintiff generally claims all profits for the sale of that style or statutory damages.  Most sales are made PRIOR to the sending the cease and deist and/or filing of the action. 

Not much has been said about this radical change in the potential damages, but I think this is a step in the right direction.  The only problem is when you have de minimis damage awards, the case becomes all about attorneys fees.  For example, have you gotten a class action settlement where you get $.25 off your next cable bill, but the attorneys get over 6 figures?  Yeah, that's what will happen here.  As a fashion lawyer who defends copyright infringment cases, I guess I shouldn't complain, but a bill where only the attorneys wins is not good for the fashion industry or you the consumer.

In sum, we maintain our previous position:

September to Remember? Schumer Introduces the Design Piracy Bill into the Senate (Again)

September is turning out to be a hot fashion law month, and we are only into week two!

Today, WWD reports Senator Charles Schumer (D., N.Y.) has once again introduced the Design Piracy Bill into the Senate. It is no secret that we here at the Fashion Law Blog are not fans of this legislation, and have dubbed previous incarnations of the bill, the Destruction of Affordable Fashion Bill

This time, we reserve judgment (kinda) as the exact text of what was introduced toady is not yet available, but we have no expectation that it will be any better than Schumer and crew's last five attempts.  But, we'll share it once we can get our hands on it and then we can all decide together.

In the meantime, one has to wonder WHY Schumer introduced this bill now?!  With elections rapidly approaching, Congress will only be in session about another two weeks.

Maybe Schumer is being passive aggressive - submitting the bill to please his generous contributing constituents, but knowing nothing will ever happen on it.  Win-Win, for him right?

Sigh.  Well, here's to hoping that Congress spends its Fall dealing with our economy, expiring tax cuts, fixing the deficit and avoiding a government shut down.  Otherwise, this will really be a September to Remember.

 

 

A response to Bloomberg Law's Interveiw of Professor Scafidi: IDPPPA is better called the Destruciton of Affordable Fashion Act

I said it before and in response to Bloomberg Law's interview of Professor Susan Scafidi [Video] I will say it AGAIN:

IDPPPA will not prevent improper litigation.  Period.

Any argument that the "Heighten Pleading Standard" will prevent improper suits i.e. suits based on a designer's belief that their design is unique or original, is just nonsense, or a red herring as we lawyers call it.  Ask any litigator, not just a fashion litigator like me, and I promise you they will tell you the same thing.

I am seriously disturbed by the Bloomberg Law interview and you should be too.  Why?

  • Professor Scafidi's comments - did she really say "elements" of Diane Von Furstenberg's wrap dress would get protection under IDPPPA or the Destruction of the Affordable  Fashion Bill?;
  • It was 15 minutes and only presented one side;
  • IDPPPA will be very costly to fashion brands because litigation costs will have to be factored into the price of clothing, increasing the price;
  • It will cause less choice in the market place.  All designers need to do is "tweak" a garment compared to the original, says Scafidi.  What does that mean?
  • It will flood the courts with litigation - Americans, unlike the rest of the world are KNOWN to be litigious; and
  • By the way Professor Scafidi laughed at the suggestion of addition of loser pays langauge into the bill.

The only good thing about the interview? Professor Scafidi looked great!  Loved her necklace.

Repeating all the reasons why the Destruction of Affordable Fashion Bill is a really.bad.idea would take too long, but you can read more at the following related posts:

BREAKING NEWS: New Design Piracy Bill Introduced into Senate

Why IDPPPA is going to KO the Business of Fashion

IDPPPA: How to SLAPP the Sting Out of Frivolous Litigation

F21 Defeats Express: an IDPPPA Preview?

IDPPPA will not prevent frivolous litigation

The "Destruction of Affordable Fashion Bill" or IDPPPA gets one step closer to becoming Fashion Law

Senator Feinstein Puts the Breaks on The "Destruction of Affordable Fashion Bill"

Destruction of Affordable Fashion Bill Gets A Hearing Date

More Propaganda from Professor Scafidi on the Destruction of Affordable Fashion Bill on Bloomberg Law 

 

The "Destruction of Affordable Fashion Bill" or IDPPPA gets one step closer to becoming Fashion Law

Consumers beware.  The cost of clothing is about to rise.  Reasonably priced fashionable items will be non-existent and affordable clothing will be utilitarian and boring.  Why? 

The Innovative Design Protection and Piracy Prevention Act ("IDPPPA") was unanimously approved by the Senate Judiciary Committee yesterday and now moves into the Senate for a full vote.

Deceptively called the "fake fashion bill" by its supporters, this bill has nothing to do with Counterfeit goods or Knock-off goods, which are covered under trademark law and are illegal.

This bill, more appropriately called the Destruction of Affordable Fashion Bill, seeks to amend copyright law and will:

  • put numerous small businesses that don't have $400,000 to spend on litigation out of business;
  • cause 1.6 jobs to be lost in Los Angeles for every fashion job lost;
  • severely disrupt the fashion manufacturing process;
  • cause lenders to stop lending;
  • increase expediently the work load of the federal judiciary -- the court that rules on copyright litigation;
  • narrow your choice of clothes; and
  • increase the cost of the few items you can buy by at least 30%.

Pretty scary right?

And legally, the Destruction of Affordable Fashion Bill will wreck havoc in the courts, tying up dockets (and your inventory) for years because: 

  • it violates due process because designers are not required to file a copyright registration on their alleged "original design;" and  
  • its has new, uninterpreted terms - like "substantially identical," "deliberate copies" and "independent creation."

just to name a few problems. 

And, yes, the trial lawyers i.e. the plaintiff's bar that work on contingency fees, support this bill.  Why wouldn't they?  There is no loser pays provision in the Destruction of Affordable Fashion Bill, so if a plaintiff files suit on a design they feel is original and they lose, they never have to deal with the economic consequences. 

So let's all give a big round of applause to the CFDA and Senators Charles Schumer, Orrin Hatch and our own Dianne Feinstein

When unemployment rises, your business collapses and the economy gets more depressed then it already is, you'll know where to send your thank you notes.

Related Fashion Law Blog Posts:

Why IDPPPA is going to KO the Business of Fashion

IDPPPA: How to SLAPP the Sting Out of Frivolous Litigation

IDPPPA will not prevent frivolous litigation

BREAKING NEWS: New Design Piracy Bill Introduced into Senate

IDPPPA will not prevent frivolous litigation

In a position paper published by the California Apparel News on September 24, 1010, Kevin M. Burke President and CEO, American Apparel & Footwear Association ("AAFA") said:

The IDPPPA also dramatically curtails the opportunities for the industry to become mired in frivolous lawsuits. Unlike previous attempts at design-piracy legislation, this bill establishes a clear system to both initiate and defend against an infringement claim.

To discourage legal intimidation and unnecessary lawsuits, the legislation creates a heightened three-step pleading process in which the burden of proof lies completely with the plaintiff. A plaintiff must demonstrate that the design in question is protectable, the offending design is substantially identical and the infringer had access to the protected design. In other words, this improved pleading requirement stops mischief before it even hits the courtroom.
 

As a seasoned fashion litigator, I can tell you that Mr. Burke is just wrong.  There is nothing the IDPPPA pleading requirement, heightened or not, that would deter a plaintiff from suing that believed that its design was original. 

Lay people tend to forget that pleading does not equal proving.  You prove to a jury or judge, at the end of the litigation process. 

The purpose of pleading is to give the other side enough information so they know why you are suing them.  It occurs at the very beginning of a lawsuit and if you don't plead well, judges almost always let you try again.

Again, if I were a proponent of this bill, and I really wanted it to deter frivolous litigation, I would include ANTI-SLAPP like procedures, which significantly, make the Plaintiff pay for the Defendant's attorneys fees if the Defendant prevails.

But, my guess is that the CFDA and the AAFA aren't worried about defending suits, as their constituents will be the ones suing.

Only time will tell.

ps -- if you want to join me for a live discussion on the current state of Fashion Intellectually Property Law and IDPPPA, I will be presenting at GlobalTex on September 29, at 'Your Legal Lifeline - Specialists Required! '

The panel, which is from 4-6 in the West Hall, Hall A, is preceeded by a wine tasting starting at 3pm - fun!!  Hope to see you there.

An Open Letter to The Fordham Fashion Law Institute

Dear Susan:

As a fellow fashion lawyer, I applaud what you are doing at Fordham University with the Fashion Law Institute, despite your unfortunate "pink and lavender" comments to New York Magazine, and agree that the fashion industry desperately needs fashion lawyers who have industry insight and knowledge.

I have to say, though, that the comments published in the press, touting Fordham as the legal arm of the Council of Fashion Designers of America (CFDA), have left me disturbed and disappointed. 

Law school is suppose to be an open forum -- a safe place to share ideas, debate concepts and teach tolerance of all sides of an issue.

While I understand that the CFDA and Diane Von Furstenburg were instrumental in helping the Fashion Law Institute open, it seems that the CFDA will be forever inter-twined in its future:

I just hope CFDA money and its political agenda of protecting high-end New York designers at the expense of small businesses, jobs and the financial well being of the rest of the country, does not color or taint the open discourse of ideas that a law school is suppose to be. 

As I know you know, Fashion is a $350 Billion dollar industry in the United States, and only a very small fraction of that out-put comes from NY.  As you launch this new, very important endeavor, please remember that as a pioneer in Fashion Law you will be watched and scrutinized. 

Please don't make this about politics and rhetoric, but instead use the platform you have been given to help the US fashion industry continue its incredible growth and dominance.

To proceed otherwise would be truly be a fashion disaster.

Sincerely,

Staci Riordan

Chair, Fashion Law Practice Group, Fox Rothschild LLP

Editor, Fashion Law Blog

IDPPPA: How to SLAPP the Sting Out of Frivolous Litigation

As you know, I am not a fan of the proposed Innovative Design Piracy Protection and Piracy Prohibition Act ("IDPPPA").  IDPPPA is something that sounds good on paper and lures in the public, like Johnnie Cochran did with OJ's glove.  And then, before we know it, the jury will conclude that OJ Simpson is not guilty, despite the DNA evidence.  Best.closing.argument.ever.  (and you should read the book)

There is no debate that counterfeits are illegal.  But there is no such thing as "original design" in fashion.  And without originality, nothing truly can be a copy.

If you read last week's WWD you were able to see where the inspiration of s/s 2011 came from.  If you watch Project Runway you can see contestants are given look books and style guides to draw inspiration for new creations.

But I digress. 

The proponents of IDPPPA claim that this third version protects against frivolous lawsuits by requiring the plaintiff to plead with particularityNonsense.  As any seasoned litigator will tell you, this requirement will only increase the cost of litigation. 

Now, if I were a proponent of this law, and I really wanted to stop frivolous litigation under it, here is what I would do:

  • I would require all fashion designs be registered with the Copyright Office, and have them indexed, examined and searchable, just like Trademarks currently are; and
  • I would incorporate Strategic Litigation Against Public Participation-like (SLAPP) procedures to afford a falsely accused Defendant an opportunity to get out of the lawsuit quickly and for a fraction of the cost of regular litigation.

(note, I am about to sound like the Fashion Litigator I am, so if this stuff makes your eyes glaze over, I am warning you to stop reading now.....)

Most of you are probably familiar with the Trademark Office and can related to the suggestion in point 1 above.  SLAPP, on the other hand may be a foreign concept so I am going to give you a bit of an overview.

SLAPP was enacted by the California legislature to protect the rights of free speech of environmentalists and other "little people" fighting big oil companies, developers and such.  The government found that Big Businesses were using lawsuits to abuse protesters by suing them for a variety of free-speech related reasons, usually under the guise of slander or libel, merely to scare the protesters into going away instead of having to spend tons of money defending themselves personally in court. 

So, the legislature devised a way for the small fry to get out of frivolous litigation fast and easily - it allowed them to yell "SLAPP," and then file an ANTI-SLAPP motion to reveal the true motivation of Big Business - squashing free speech with their large litigation budgets. 

But then, to the dismay of (some) the judiciary and (most) of the legislature, SLAPP morphed at the hands of crafty attorneys and expansive-reading judges, and became this neat trick that litigators tend to over use for all types of causes of action not just those relating to free speech, and it has spanned further legislation like SLAPP-Back motions. 

Yes, it is a bit of a hot mess, but some of its provisions can be useful in strengthening the proposed IDPPPA legislation.  Here's how:

  1. Allow a defendant to file an "ANTI-SLAPP" type motion within 20 days of service of a fashion design copyright complaint.  In this motion, a defendant would essential plead that the plaintiff's "fashion design" is not original and doesn't warrant copyright protection under the act.
  2. Once Defendant's motion is filed, all discovery is stayed until the ANTI-SLAPP motion is ruled upon by the Court.
  3. Then, the burden shifts to the Plaintiff.  To proceed with the litigation, in its response to the ANTI-SLAPP, the Plaintiff must prove that its Fashion Design is original within the meaning of IDPPPA, and Plaintiff has substantial probability of prevailing on the merits of its case.
  4. If the Defendant wins, the Plaintiff must, like under SLAPP, pay for ALL of defendant's legal fees incurred in filing the ANTI-SLAPP motion.  And a Defendant may be award punitive damages if the Court finds the Complaint frivolous.  (If the Defendant loses, the case proceeds as usual and the Plaintiff only gets their fees if the Defendant's ANTI-SLAPP motion was frivolous.)

If we are going to be stuck with this terrible new law that will put numerous companies out of business, and raises the cost of clothing for all consumers, don't you think America's manufacturers deserve as much protection as the environmentalist? 

Both are endangered species, right?

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!!!

 

BREAKING NEWS: New Design Piracy Bill Introduced into Senate

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

Johanna Blakley: Lessons from fashion's free culture

I just saw this presentation tonight online that Johanna Blakley gave at the TED conference:

Not sure if I embedded it correctly, so you may have to click here for the PDF or click here for it on You Tube.  Johanna oversees USC's Ready to Share project.

Anyone interested in Design Piracy or whether Fashion Should be Copyrighted should watch it.

And if any of you out there can introduce me to Johanna, I would love to meet her!

Video Clips From The Design Piracy Prohibition Act (DPPA) Panel

On Tuesday, April 20th, the California Fashion Association hosted a presentation and panel discussion on the Design Piracy Prohibition Act (DPPA), as part of the ‘Market Tuesday’ series for the California Market CenterI was honored to have been asked to speak, and I am working on posting some video clips. 

I am still having some problems, but try these for now:

Click here to view and play.
Length: 02:24
 
 
Click here to view and play.
Length: 01:06
Click here to view and play.
Length: 00:28

 

 

"LOOK:" Oscar Night Fashion and DPPA is Rising from the Dead

The best part of the Oscars is the fashion.  While there were definitely some misses last night, and some boring entries, my favorite look was Sandra Bullock's metallic Marchesa gown.  And for the record, she is one of my favorite actress ~ I am SO glad she won (Best Actress for The Blind Side in case you turned if off after the red carpet)!

On an interesting side note, Fashionista has a story this morning, listing this dress as Five Oscars Dresses ABS by Allen Schwartz is Bound to Knock-Off.   
 
Companies like ABS and designers like Allen Schwartz are part of the reason New York Senator Charles Schumer is preparing to re-introduce the Design Piracy Prohibition Act, reports the Boston Globe yesterday in a story titled, "If the shoe fits, they’ll copy it."
 
This is Schumer's FOURTH attempt at getting new fashion copyright legislation into congress, which some believe is due to pressure from campaign contributor Barry Diller and his wife, Diane Von Furstenberg, who is president of Council of Fashion Designers of America ("CFDA").

This time, Schumer is being aided by Jeannie Suk, Harvard Law professor and co-author of Standford Law Review article, "The Law, Culture and Economics of Fashion," in which a new fashion copyright infringement standard is proposed. (because substantial similarity wasn't difficult enough for judges or Nimmer, see section 13.03). 

Suk, and her co-author C. Scott Hemphill, propose that fashion designs will be "infringing" i.e. an illegal knock-off if they are a "close copy" or are not "substantially dissimilar." 

WHAT DOES THAT MEAN?!  And how in the world will judges figure that one out?  Is a "style guide" included in the Act?

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. 

This proposed legislation will do nothing but hurt the $350 billion dollar United States Fashion Industry.  Doesn't Schumer know the rule, "three strikes, and you are out?"

Stay tune for more on why the DPPA is a VERY BAD IDEA and will only harm the fashion industry.

Photo Credit: Fashionista.com

Investment and Mentoring: Mirror the Success of Alexander Wang with FashInvest

In 2008, Alexander Wang won the CFDA/Vogue Fashion Fund Award.  Alexander Wang won cash and mentoring to learn how to "execute my ideas into a business,” as he states in a recent New York Times article by  Ruth La Ferla.  Since winning the award, Alexander Wang has grown his company into a 25 million dollar business.

Jennifer Wheeler, the vice president for designer apparel at Nordstrom stated, that Wang's success can be attributed to the CFDA/Vogue mentoring Program:

 “He hasn’t bitten off more than he can chew. His deliveries are steady, and his quality is consistent. He hasn’t gone through some of the growing pains new designers can go through if they have success right off the bat.”

My clients frequently ask me for assistance in finding financing and investors.  Unfortunately, unless you are very lucky like Alexander Wang, the options were slim.  Until now. 

The founders of FashInvest recently contacted me to become a steering committee member and speaker at their upcoming Summit in Spring 2010 in New York.   What does FashInvest do?

It will help fashion companies acquire the necessary skills, successfully present their opportunities to investors, raise the necessary investment capital and eventually launch and/or grow their businesses.  Just like the CFDA did for Alexander Wang.

The Spring Summit will allow a select group of fashion designers or fashion companies to present their vision to venture capitalists and operating executives in order to to secure capital investment.  Fashion Designers/Companies will need to apply and go through a selection and training process prior to presenting. 

 

You should know that the founders of FashInvest are also the founders of Early Stage East, which to date has provided participants with over 1 billion in capital.   This will be a great, and welcome opportunity for the fashion community to mix with venture capitalists.

I am trying to talk them into doing a similar event here in LA.  Do you think the Los Angeles fashion community needs it?  Does your fashion company need investment?  I would love to hear from you.

photo credit: Alexander Wang with Gap Models from theFashincult.com

Editor update:  On December 14, 2009, WWD highlighted FashInvest in an article titled, "FashInvest Aims to Connect Entrepreneurs, Investors."