fashion design right revealed - foley & lardner · lululemon » 33 issued design patents...
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1©2015 Foley & Lardner LLP • Attorney Advertising • Prior results do not guarantee a similar outcome • Models used are not clients but may be representative of clients • 321 N. Clark Street, Suite 2800, Chicago, IL 60654 • 312.832.4500
©2015 Foley & Lardner LLP 2
Today’s Speakers
Richard McKennaPartner
Foley & Lardner LLP
Andrew Baum Partner
Foley & Lardner LLP
Laura Ganoza Partner
Foley & Lardner LLP
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3©2015 Foley & Lardner LLP
Design Patents
Basic Concepts For the Fashion Industry
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■Product Innovations » Distinguish products from
competitors
■Type of Innovation» Functional – Utility Patents» Ornamental – Design Patents
■ IP Protections» Can create effective barriers to
competition
Innovation
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■Rights Granted» Right to exclude others
for making, using, selling or offering for sale a product which is substantially the same
■ Term 14 Years (soon 15 years)
What is a Design Patent?
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■Protects » Ornamental, Non-
Functional Designs
■Requirements» Design must be new» Cannot be an obvious
modification of existing designs
What is a Design Patent?
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Example Design Patent
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Example Design Patent
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Fashion Design Patents
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Fashion Design Patents
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Fashion Design Patents
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Fashion Design Patents
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■Requirements» Design must be new» Cannot be an obvious modification of existing
designs
■Time Limitations» US Application must be filed no later than 1
year from the date of first public disclosure
Timing Requirements
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■Details for Application» Drawings (typically 7 views per embodiment)» Identify “Inventor(s)”» Application examined at Patent Office, first
action typically 12 – 14 months from filing.» Patent typically issues 13 to 18 months from
filing.
Prosecution
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■Contents of application remain secret until design patent issues
■Cost Estimate – typically under $3,000 (one embodiment with solid drawings from client).
Prosecution
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■Search Patent Office records for patents which disclose similar features
■Purpose – identify potential infringement risk.
Clearance
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■Class 02 – Apparel (clothing, footwear)» 18,476 Issued Patents since 1975» 1167 Issued Patents in 2014 - 2015
■Class 03 – Purses and Bags» 16,703 Issued Patents since 1975» 948 Issued Patents in 2014 - 2015
■Class 11 – Jewelry and Ornaments» 13,852 Issued Patents since 1975» 777 Issued Patents in 2014 - 2015
Statistics
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■Lululemon» 33 issued design patents (perhaps more)
■Louis Vuitton Malletier» 80 issued design patents (perhaps more)
■Hermes Sellier» 223 issued design patents (perhaps more)
Statistics
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Trade Dress and Copyright
Basic Concepts For the Fashion Industry
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■Trade dress: Nonfunctional design feature, or combination of features, which signify a brand
■Trade dress acts like a trademark to identify a single source for a product line
Trade Dress – What Is It?
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Packaging and Labels
Originally, “trade dress” was labels and package designs
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■magazine or book cover designs(Reader’s Digest, Cliff’s Notes, Harlequin Romance)
■ restaurant design/style(Fuddruckers, Two Pesos)
■packaging elements(dripping red wax for Maker’s Mark bourbon)
■designs applied to product exteriors(Louis Vuitton “Toile”; Bottega Veneta
“Weave”)
Today, Trade Dress Takes Many Other Forms
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■The design of a product can be protectable trade dress,
- BUT -■Only with proof that the relevant public
actually recognizes the design feature(s) as coming from a single company (“secondary meaning”)
What About Product Designs?
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The Wal-Mart Case
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■Length of time■Sales volume■Exclusivity■Advertising expenditures■Unsolicited media coverage and references■Awards■Testimony of experts in the field■Survey evidence
Proving Secondary Meaning
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Secondary Meaning Proven?
YES NO
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Secondary Meaning
Express “Track Jacket” Forever 21 “Traveler Knit”
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■What doesn’t count:» creativity, novelty, esthetic merit
■What does count:» public recognition that the design signifies a
single source
■The bottom line:» “trade dress” protection is an option only for long-
used well-established designs
Secondary Meaning
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■Trade dress must always be defined using specific, consistent, elements» “Style” or “look and feel” is not enough
■Concepts, marketing ideas and commonplace themes are not “trade dress”» Frusen Glädje did not infringe Häagen-Dazs» American Eagle knockoff of A&F style and image
did not infringe
Specificity
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■To be protectable, trade dress must be nonfunctional
■Protected design cannot make the product» work better» be easier to use» cheaper to make
Nonfunctionality
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Functional?
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Product designs can be registered as trademarks only with a lot of proof of secondary meaning
Registered Trademark?
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■Does not protect» immaterial variations on “classic” designs» “useful articles”
■Does protect» parts of useful articles that are “physically or
conceptually separable”» fabric designs» 2-D graphics» jewelry
Copyright
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■Author is person who puts idea into tangible form
■Employer owns copyright only if creator is a true employee – not an independent contractor
■Obtain written assignments from all outside designers
■Registration is desirable, but not necessary
Copyright-Ownership
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Design Rights Enforcement
Basic Concepts For the Fashion Industry
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■Trademarks/Trade Dress » Confusingly Similar
■Copyrights » Substantially Similar
■Design Patents» Overall Design is Substantially the Same
■None require designs to be exactly the same
Tests for Infringement
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Copyright Enforcement:DVF v. Forever 21 and Target
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• Diane Von Furstenberg has sued Forever 21 and Target, and others, for copying her prints
• DVF had copyright registrations on the fabric designs
• Permanent injunctions were issued against both Forever 21 and Target
• Even in these situations, DVF’s fabric design were protected, not the overall design of the dress
Copyright Enforcement:DVF v. Forever 21 and Target
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■Trademark protection for single color, if non-functional and has acquired distinctiveness
■The red of the sole must be a contrast with the rest of the shoe
■YSL’s monochromatic red shoe did not infringe the Louboutin Trademark
Trade Dress Enforcement Louboutin v. YSL
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Trade Dress Enforcement Hermès Birkin Bag v. Emperia, Inc. , et al.
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Trade Dress EnforcementConverse Chuck Taylor
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Trade Dress EnforcementConverse Chuck Taylor
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Trade Dress Enforcement Converse Chuck Taylor
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ITC 337 PROCEEDINGS:A powerful remedy■ United States International Trade Commission (ITC)
■ The ITC is federal agency that determines the impact of imports on U.S. industries, and directs actions against certain unfair trade practices, such as patent, trademark, and copyright infringement.
» Remedy is limited to injunctive relief» Exclusion order enforced by U.S. Customs and Border Protection » Bars importation of the accused product
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■U.S. Pat No. D645,644
Design Patent EnforcementLululemon v. Calvin Klein
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Design Patent Enforcement Lululemon v. Calvin Klein
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■The Innovative Design Protection Act of 2012» The bill set the standard for infringement of copies
that were “ substantially identical” to the originals – a much stricter standard than the “ substantially similar” threshold
■Provides a three-year period of protection ■Designs must be original and unique
Proposed Legislation
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■Create own “Knock-Off” Line
Other options for designers?
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QUESTIONS??
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Contact Information
Laura GanozaPartner
Foley & Lardner LLPMiami, FL
Andrew BaumPartner
Foley & Lardner LLPNew York, NY
212.338.3527 [email protected]
Richard McKennaPartner
Foley & Lardner LLPMilwaukee, WI414.297.5723
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Thank You!
■ A copy of the PowerPoint presentation and a multimedia recording will be available on Foley’s website within 24 to 48 hours: http://www.foley.com/fashion-design-rights-revealed/
■ A copy will also be available on FGI’s website http://southflorida.fgi.org/
■ We welcome your feedback. Please take a few moments before you leave the web conference today to provide us with your feedback, and any ideas for future events.