Why Counterfeits?: The Real Fashion Opium for the Masses?

The prevalence of counterfeits are everywhere. Even celebrities like Anna Kournikova (who can easily afford the real thing) have taken liberties with carrying around fake handbags. It has become fashionable to buy fakes and admit that they are fakes. Even celebutantes like Paris Hilton wears fake Louis Vuitton hair clips with her real Louis Vuitton bags.

Ms. Hilton also stirred up some controversy when she appeared at Bondi Beach wearing a Louis Vuitton bikini that some bloggers thought was a fake.

Ms. Britney Spears was hit with an injunction with Louis Vuitton for using a fake version of its Murakami cherry blossom design in the interior of a car used for her music video: "The luxury clothes and accessories brand won an injunction in Paris yesterday to stop the 2005 video - which shows mother-of-three Britney driving a pink car emblazoned with the company's prestigious 'cherry blossom LV' symbol - from being shown.
SonyBMG and MTV Online were ordered to pay $117,600 each for "damaging" the brand's image, and are expected to pay $1470 for every day the video remains on the internet.
Louis Vuitton has continuously worked to prevent its goods from being copied, and has fought the ongoing battle in French and other courts."

Since celebrities are influencers of the public on a mass level, these celebrities are making it more acceptable to wear knockoffs. And there are some advocates that support the use of knockoffs within the field of law: “However, some scholars hope that the United States will resist the international pressure, arguing that the framework of free copying in this country actually benefits the fashion industry as whole more than the stricter laws of Europe.” Laura C. Marshall, Catwalk Copycats: Why Congress Should Adopt a Modified Version of the Design Piracy Prohibition Act, 14 J. Intell. Prop. L. 305, 309 (2007). Those opposed to stricter intellectual property protection for fashion design argue that piracy actually induces more creativity and economic growth. They argue that the fashion industry tends to remain stable in a ‘low IP equilibrium’ Id. at 320. Since piracy involves diffusing the designs of elite couture houses to a larger audience that normally would not have access to these designs, it makes the exclusivity factor of the designs obsolete to the elite clientele of the creators of the designs.

These scholars are basically saying that by the time that fashion items become popular enough to be counterfeited, then the design house is compelled to create another new "cult" item. This does seem to be working. There is a New York Times article you can read here: http://www.nytimes.com/2008/03/27/fashion/27BOTTEGA.html?_r=1&ref=fashion&oref=slogin The whole premise is that only a certain group of people would buy the real bag. This group spurns a bag once it had hit the mainstream which forces the design houses to create more innovative items. One way for the fashion elite to know that a bag design has run its course is to look toward public consumption of counterfeit bags and knockoffs.

It details the rise of Bottega Veneta which is known as being logo free. This design house is reacting to the mass counterfeit production of the monogram look that was started with the Louis Vuitton handbags and has been done by every other company such as Coach and Dooney&Burke. The article details how the bags are identifiable not by logo, but by craftsmanship and are "recession proof".

It is a design house known for its basketweave leatherwork. Unfortunately, it seems that this article on Bottega Veneta also served as an inspiration for counterfeits too:

Here is an authentic Bottega Veneta.

Here is a fake Bottega Veneta with a knockoff replica right next to it:

Can you tell which one is the fake? If you guessed that the one on top is a fake and the one on the bottom is the real Bottega Veneta then you can't be fooled. The one on top is sold for $48.00 at Urban Outfitters while the real deal is sold for $1,680.

The price disparity is immense. This is typically the reason that people feel justified in buying pirated goods. However is price a justification for design theft? Or does it seem like all of these goods are just useful designs that promote fair competition?

Here are some useful term differences to know:

Counterfeit: an imitation made with the intent to deceptively represent its content or origins.

Knockoff: an unauthorized copy or imitation

It is far worse to have a counterfeit item than a knockoff. A counterfeit would be the purse carried by Anna Kournikova since the LV rainbow monogram is clearly on the bag. The maker of its bag intended to deceive the public into believing that it is originally from LVMH. The green purse to the left is a knockoff that is "inspired" by Bottega Veneta.

What is the harm in counterfeits? Is that green purse sold by Urban Outfitters really hurting anyone?