CHAPTER 1: Introduction to Fashion Law
Guillermo C. Jimenez
Summary adapted from Chapter 1 of "Fashion Law: A Guide for Designers, Fashion Executives and Attorneys" edited by Guillermo C. Jimenez and Barbara Kolsun (Fairchild Books, 2010).
Fashion Law is an emerging legal specialty that deals with the everyday business problems of fashion companies and designers. Fashion Law draws on several traditional legal disciplines, in particular Intellectual Property, Commercial Sales, Customs, Real Estate, Employment Law, etc.
Historically a highly-fragmented industry composed of countless small companies and entrepreneurs, the fashion industry was slower than many others to recognize the need for a specific legal discipline to support it. However, with the rapid growth of the fashion and related industries (i.e., home products, sports apparel, interior design, beauty products, etc.) into a global $1 trillion dollar industry, it has become clear that fashion companies must develop the same legal sophistication already achieved in business sectors such as entertainment and advertising.
In addition to the growth of the industry, there has also been a trend toward consolidation and the arrival of fashion conglomerates such as LVMH, Inditex, Philips Van Heusen, Jones New York, and Liz Claiborne.
Disruptive transformation of the fashion industry, particularly in the recent move toward faster production processes and "fast fashion," have also spurred the industry to address long-standing legal problems. In particular, the extent to which fashion designs can be legally protected has been a source of confusion and uncertainty in the industry. Fashion lawyers help their clients recognize the legal limits of the traditional fashion practice of "knocking off" or imitating successful fashions.
With the rise of globalization and international trade, the long-standing counterfeiting problem that fashion designers face has escalated into an extremely serious problem. Most of the large apparel manufacturers have now realized that they must have permanent staff engaged in a perennial battle against counterfeiters, and some fashion lawyers have consequently specialized in anti-counterfeiting.
Given the traditionally-fragmented nature of the industry, licensing has long been an essential structure in the fashion industry. Licensing allows designers to focus on what they are good at – creativity – while allowing efficient factories to specialize in apparel manufacture and distribution.
A number of problems commonly arise out of the distribution structure of the fashion industry, which relies on countless boutiques and department stores to sell products. This requires a very large sales force, which triggers important employment law issues. In addition, the need to lease numerous retail outlets has forced fashion companies to develop a strong expertise in commercial leasing.
As any reader of Vogue knows well, fashion is an industry built on novelty, and that novelty must be communicated to consumers via advertising. Large fashion companies recognize the need to practice responsible advertising via proper use of clearances from celebrities, photographers, etc.
Today, the bulk of American apparel products are manufactured overseas. Since the fashion industry operates on the bases of seasons, it is very important that shipments be delivered on time. The necessity of customs clearance sometimes creates a major obstacle in this regard. Fashion companies with extensive overseas manufacturing must learn to anticipate and avoid customs problems, which can be ruinous.
Author details:
Prof. Guillermo C. Jimenez
Fashion Institute of Technology
New York, New York
Summary by: Guillermo C. Jimenez
