Annabelle Gauberti, founding partner of London fashion law firm Crefovi and president of ialci, provides insightful knowhow and tips, to make the most of intellectual property rights in the fashion and luxury goods industries.

1. Intellectual property in
fashion & luxury: how to
protect, enforce & monetize
your IP rights
The Hospital Club, B@B– 18 February 2014

2. How and why is IP the foundation of a sound luxury & fashion
business?
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
2

3. What are IP & IP rights?
Author
Society
Creativity/
Innovation
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
3

4. Which IP rights are available to luxury & fashion houses?
PATENT
CONFIDENTIAL INFORMATION
TRADE MARKS
PASSING OFF
COPYRIGHT
MORAL RIGHTS
UNREGISTERED DESIGN RIGHTS
REGISTERED DESIGN
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
4

5. What are the remedies for IP infringement?
ACCOUNT OF
PROFITS
PECUNIARY
DAMAGES
FINAL
REMEDIES
DECLARATION
DELIVERY UP
NON
PECUNIARY
COURT ORDER
REVEAL
RELEVANT INFO
INJUNCTION
REMEDIES
INTERIM
REMEDIES
CRIMINAL
SANCTIONS
INTERIM
INJUNCTIONS
SEARCH ORDER
EX PARTE
ORDERS
FREEZING
INJUNCTION
WITHOUT OR
ON NOTICE
PROCEEDINGS
THREATS
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
5

6. The court system for IP in England & Wales
CHANCERY DIVISION
INTELLECTUAL PROPERTY ENTERPRISE COURT
(formerly PATENTS COUNTY COURT)
SMALL CLAIMS TRACK
• How to bring a claim?
• The trial
• Costs
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
6

7. How do these IP rights get used in the fashion & luxury sector?
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
7

8. Patent law
INVENTION
INDUSTRIAL
APPLICATION
Katerina Plew v Victoria’s Secret
PATENT
NOVELTY
INVENTIVE
STEP
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
8

9. Trade mark law
CLEAR
• Conventional trade marks
• Non-conventional trade marks
PRECISE
OBJECTIVE
TRADEMARK
SELFCONTAI
NED
DURABLE
• Christian Louboutin v Zara
• Christian Louboutin v Yves Saint
Laurent
EASILY
ACCESSIBLE
&
INTELLIGIBLE
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
9

10. Trade mark law
Unfair
advantage?
Detrimental?
Yes!
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
10

11. Passing off
• Goodwill
• Misrepresentation
• Damage
Rihanna v. Topshop
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
11

12. LITERARY
WORKS
Copyright law
• The idea/expression dichotomy
• Originality
• Fixation & tangibility
LDMA/PRIMARY
WORKS
DRAMATIC
WORKS
MUSICAL
WORKS
ARTISTIC
WORKS
COPYRIGHT
SOUND
RECORDINGS
• Thierry Berthelot v Van Cleef &
Arpels
ENTREPRENEURIA
L/SECONDARY/
DERIVATIVE
WORKS
• Ownership of copyright & the
employee author
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
FILMS
BROADCASTS
TYPOGRAPHY
RIGHT
12

13. Design law
• European directive on the legal
protection of designs (1998)
• European regulation on
community designs (2002)
• North American Innovative
Design Protection Act (IDPA)
REGISTERED
DESIGN
DESIGN
RIGHT
ELEMENTS
• DESIGN
• NOVELTY
• INDIVIDUAL CHARACTER
• EXCEPTIONS TO
REGISTRATION
REQUIREMENTS
• A DESIGN
• QUALIFICATION OF THE DESIGN
• ORIGINALITY
• DESIGN MUST BE RECORDED
• DESIGN MUST NOT BE
EXCLUDED
INFRINGEMENT
OWNERSHIP
INFRINGEMENT
PROTECTION OF
SPARE PARTS
SECONDARY
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
• PRIMARY
• SECONDARY
• EXCEPTIONS
REMEDIES
13

14. IP strategy plan: key considerations
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
14

15. Developing brand equity: how the legal bits are at the core of a
successful brand equity strategy
Brand equity in million $
Louis Vuitton
24,312
BMW
22,425
Mercedes
15,344
Porsche
12,413
Hermès
11,917
Gucci
7,449
Chanel
6,823
• Extreme concentration of intangibles that brands embody
• Brand contribution = intangible earnings
• Difference between cost price & sale price
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
15

16. International IP protection: why it matters & how to do it
Why?
• Preventing counterfeits & knockoffs
• Preventing trademark & patent “trolls” & “squatters”
• Securing IP protection where the company sells or plans to sell its products
• Securing IP protection where the company manufactures its products
How?
• Madrid Protocol (trademarks)
• Berne Convention (copyrights)
• Patent Cooperation Treaty (patents)
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
16

17. Strategies to protect your IP rights: be on the ball
Do not delay!
Register
IPRs
Legal
opinion
Police IPRs
Promptly
take action
Spend your IP protection budget wisely!
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
17

18. Strategies to avoid infringing on IP rights: be very cautious here
Look for notices
of rights on
products/labels
Search for
patents,
trademarks,
designs
Use good
common sense!
Consult qualified
IP counsel
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
18

19. IP litigation & disputes: do’s & don’ts
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
19

20. What to do if you receive a cease & desist letter or are sued
• Forward it to you lawyer
• Submit a claim with your insurance carrier
• Call the business party on the other side of the case
• Remember the cost of litigation & try to avoid it
• Arbitration?
• Settlement?
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
20

21. Understanding the stakes in IP litigation
• Copyright disputes
Where?
Who?
• Trademark disputes
• Patent disputes
• Design disputes
• Settlement
Cost
Lawsuits as
a business
tool
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
21

22. Monetizing your IP rights: how to rip the profits from your
creativity
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
22

23. How to monetize your IPRs?
Licensing
Assignment
Selective
distribution
Franchising
Taking
security over
your IPRs
Collateral
against
corporate
financing
Auctioning
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
23

24. Conclusion
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
24

25. intellectual property in fashion & luxury: how to protect,
enforce & monetize your IP rights
Annabelle Gauberti
Founding partner
annabelle.gauberti@crefovi.com
@Crefovi on Twitter
Intellectual property in fashion & luxury: how to protect, enforce & monetize your IP rights
25