DVF Settles For Mercy

Diane von Furstenberg has reached an out of court settlement with the designers from the label Mercy. Mercy is a Canadian designer label. The two designers of Mercy are Jennifer Halchuk and Richard Lyle. They brought a claim that style elements from a jacket in their collection were used by Ms. von Furstenberg in the Garden Zaria jacket in her recent Spring collection.

When the similarities between the jackets was initially discovered, Ms. von Furstenberg issued a public apology and reached out the designers directly in order to resolve the matter. The designer on her team that had introduced the jacket was fired.

The designer Jennifer Halchuk appreciated these measures: “I greatly appreciate DVF coming forward to resolve this issue in a such a forthright manner and for acknowledging our ownership of the jacket design. We are very pleased to have successfully resolved this dispute in a manner that protects our design.”

Ms. von Furstenberg is well known in the fashion industry to for lobbying in favor of the Design Piracy Prohibition Act which is a proposed piece of legislation that would enable fashion designers to protect their works as copyrighted works for a period of time.

“While this is an isolated instance for DVF, it is unfortunate that way too many others intentionally build businesses by stealing the work of other designers,” said Ms. von Furstenberg. “The design process is vulnerable and in need of urgent reform so companies like Mercy can be protected. Now is the time to pass the Design Piracy Prohibition Act, and we must all do a better job teaching the next generation of designers and the thousands of designers who work in industry that copying is wrong.”

Stella McCartney Inks a Deal With Gap, Inc.

Gap, Inc. has announced a deal with Stella McCartney to create collections for its Baby Gap and Gap Kids lines. The collections are slated to be launched later this year in its stores in the U.S., U.K., France, Japan, Ireland, Canada, and on its website.

While McCartney has said she has always wanted to design clothing for children, this will be her first foray into this market:

'For years I’ve wanted to create a collection for kids,' McCartney said. 'It’s something I’ve often been asked about. I believe that this one-off collaboration will be a great way for customers to be able to participate in the Stella McCartney brand. I believe that kids’ clothing should be more accessibly priced, which is particularly important at the moment, given the current climate.'

I applaud Stella McCartney for viewing this current market as an opportunity to reach out to a larger consumer base. As I have written before, I support legislation which protects designers' creative intellectual work but I do think that designers can work with consumers by versioning.

Versioning provides a decent solution to piracy by allowing designers to create pieces that are their own creative work at lower price points (Target and H&M work with designers all of the time to do this). This allows potential counterfeit goods consumers to purchase legitimate designer wear at a price point that the consumer can afford. It allows the designer to profit from mass production rather than giving pirates more incentive to create knockoffs. It also allows smaller trendier designers to get more of a consumer base so that they are not put in the position that Trovata found itself in.

Translation: The more consumers are aware of your name, designs, and style, the harder it is for places like Forever21 knockoff off your work. Smaller designers can claim trade dress more effectively because likelihood of consumer confusion would be more apparent.

I can't wait to see what Stella churns out for Gap!

Forever 21 Case Ends in Mistrial

It seems that the culmination of the trial we have all been watching ended in a little bit of a letdown a few days back. While I actually knew about the trial earlier, I have been busy with non blogging things.

Here is what the rest of you may have missed (from The WWD Blog):

"After two years of legal wrangling, days of testimony and thousands of pages of court documents, Trovata and Forever 21 are back at the starting line because of a mistrial over allegations the cheap-chic retailer knowingly copied Trovata's designs.
The conclusion of the trial, which had the potential to clarify intellectual property rights in a time when knockoffs of runway looks often find their way into specialty chains before the originals, didn't bring closure, but Trovata accomplished what design houses with bigger budgets and bigger names could not. It forced $1.7 billion Forever 21 into court to answer questions about mimicking looks from designer collections.

And the game isn't over. Trovata has indicated it will seek a new trial.

The juror on the panel of six men and two women who blocked a Trovata win spoke with conviction after the mistrial. Stephen Sharp said design elements in Trovata garments weren't widely known and, therefore, any similar merchandise in Forever 21 stores didn't confuse the public about the brand.

'The jury is placed under difficult circumstances to be ad hoc fashion experts and the law is somewhat vague and contradictory,' he said. 'There is no impartial body analogous to the patent office. All of these things made it a difficult exercise to go through.'"

I wish Trovata all the best. This trial indicates the absolute necessity to have at least some minimal protection for designers. It is because U.S. law is so opposed to designers' rights (because of the fear that it will inhibit growth in the market) that designers such as Trovata have to argue under trade dress (which may not be the most convincing argument).

Forever 21 Plays the Dumb Card In the Final Hour

Forever 21 had been slammed with a lawsuit by the label Trovata. As you can tell from the photo above, there is an uncanny similarity between its t-shirts (top row) and Trovata's (bottom row). Trovata is a smaller design label that has a cult following for its prepster look with an edge.

It has taken Trovata two years to bring this case to court (Federal District Court in Santa Ana, CA). Closing arguments were today.

Forever 21 introduced its potentially infringing articles back in 2007. The trial commenced two months ago and today was closing arguments. This is one of the first cases where a jury will decide whether or not Forever 21 has been illegally pilfering other designers' creative works (designs). What is unique about this particular case is that unlike previous lawsuits against Forever 21, Trovata is arguing its case under trade dress protection versus copyright protection.

There is very little protection for designers' creative works under copyright law in the United States which is why many of them are lobbying for the Proposed Design Piracy Prohibition Act.

Trade dress involves visual appearance of a product or store that creates a link in the consumer's mind to a particular brand (ex: Abercrombie case).

Trovata attorneys are attempting to argue that Trovata's unique placement of various buttons, decorative seamwork, and labels (which Forever 21 has copied) are being infringed upon by Forever 21.

Forever 21 admits that its garments do look similar but argues that Trovata's garments are not unique enough to warrant trade dress protection:

“Trovata is claiming that certain button patterns and stripes on a sweater would cause consumers to associate the garments with its brand, but there is no evidence to suggest that consumers would be confused,” said Bruce Brunda, an attorney for Forever 21. “Forever 21’s products are only sold in Forever 21 stores and are labeled with Forever 21’s brand. The design features on the Trovata designs are rather generic and are not protected by copyrights.”

Forever 21 has a long history of knocking off other designers. It seems that the company's litigation history may help decide the outcome of this case:

In a March 13 order in the case, U.S. District Court Judge Michael Dolinger in Manhattan reprimanded Forever 21 for deceptive conduct during the discovery phase. He added, “We note the extraordinary litigating history of this company, which raises the most serious questions as to whether it is a business that is predicated in large measure on the systematic infringement of competitors’ intellectual property.” Forever 21 is willing to endure these lawsuits and continue to use other designers' work because it is extremely profitable for the company. If you just flip through any fashion magazine, you can see recession inspired pages of "Splurges and Steals" which pair high fashion with uncannily similar Forever 21 products. Consumers want to access high fashion at low price points. Forever 21 caters to those desires.

The cofounder of Forever 21 played dumb while she testified about her company's profits, practices, and its officers: "Asked by Colucci whether she would be 'surprised' if Forever 21’s sales exceeded $1.5 billion annually, Chang responded, 'Yes, it’s surprising. I didn’t know.' She could not identify her officers, she said she had never even heard of Trovata until her company was used by them.

In closing arguments today, both sides rallied hard. Frank Collucci, the attorney for Trovata has a hard case to make from the legal side. While it is easy to see that their designs have been copied by Forever 21, there is no legal protection unless the average consumer can link those particular "looks" in the garments shown above with the label Trovata. Keep in mind that Trovata is a smaller label that is not well known to the average Forever 21 shopper. If the court rules in favor for Trovata, it would mean that large discount fashion chains such as H&M, Uniqlo, Zara and Mango would have to start creating their own creative designs rather than zipping through their copies of Women's Wear Daily.

American Apparel Needs To Repent (To a Rabbi?)

*Photo courtesy of Getty Images*

I outlined Woody Allen's lawsuit against American Apparel back in April 2008. Woody Allen was just outraged that Dov Charney from American Apparel would have the gall to use his image for commercial purposes without the actor's permission: "They're not classy," Allen said. "If I'm going to do a commercial, it would have to be for, as I said, a large amount of money, it would have to be very clever, kind of witty or intellectual-style commercial, and it would have to be for a product that would enhance my image." The lawsuit was over billboards put up by American Apparel of Woody Allen dressed as a rabbi from his movie Annie Hall. Charney claimed that the lawsuit was silly at the time.

It seems that Allen's ten million dollar lawsuit was not as silly as Charney thought it was. Allen has agreed to settle his lawsuit for five million dollars. Charney remained unrepentant because he felt the advertisements expressed his feelings of negative marginalism. He claims that the insurance company that deals with American Apparel forced him to settle: "I'm not sorry of expressing myself," he said.

Charney said he hoped that the lawsuit would not affect Mr. Allen's feelings of him personally: "We would never try to malign the dignity of Mr. Allen," he said. "I have respect for Mr. Allen. ... I hope to meet him on more friendly terms at a different point."

Looks like clothing companies need to be more careful about using celebrity images...like I pointed out in my earlier post about this case, misappropriation never pays. It is easier to get permission than to use first and then pay out.

No Mercy for DVF

After championing copyright rights for fashion designers under the proposed Design Piracy Prohibition Act, Diane von Furstenberg has done the unthinkable....she has ripped off a fellow designer's work. Her Garden Zaria jacket pictured left looks eerily similar to the label Mercy's floral silk jacket pictured on the right.

The irony of it is that the original jacket by Mercy costs $300 while the DVF knockoff version costs $1,000. Diane von Furstenberg has agreed to compensate the designers of Mercy for this. She says: "I am devastated. But this can be a lesson for everyone... I will do what is necessary to do, and if indeed there was an infringement, I will compensate and will use this example to make sure this doesn't happen again - not just for me, but for everybody."

The designer who copied the design on her staff has been fired. I wonder if this will serve as ammunition for groups lobbying for the proposed legislation? Will DVF recover from this fauz pas? It does seem hypocritical to lobby for design copyrights when you are ripping off small designers right?

Tim Gunn Does DC To Lobby for the New Design Piracy Prohibition Act

Tim Gunn and Project Runway Season 5 winner Leanne Marshall made a trip out to Washington in order to rally support for the reintroduced Design Piracy Prohibition Act which was brought back to life last month.

As I have blogged about the previous incarnation of the Act, it would serve to provide copyright protection to designers for their creative works. Currently, there is no such legal protection for designers except for blatant infringement of trademarks.

The current proposed Act would provide designers copyright protection for three years. Designers would be able to apply for protection by submitting a sketch or photo of their design via mail or email. This would register their design. It would cost designers $30 to register their works.

Mr. Steven Kolb who is the executive director of the Council of Fashion Designers of America was also in Washington DC to lobby for the passage of this legislation. He plans on coming back to Washington DC next week with designers Tracy Reese and Francisco Costa.