Nihar Shah

Lawsuit Overview Chanel’s lawsuit against What Goes Around Comes Around (WGACA) has been a focal point of attention within the fashion industry, sparking extensive debate and analysis. The legal dispute revolves around a multifaceted set of allegations, including trademark infringement, unfair competition, false advertising, and false association. These allegations are at the crux of Chanel’s contentions against WGACA, which asserts that the luxury resale company has been selling counterfeit products and engaging in deceptive marketing and unfair competitive practices. For instance, Chanel’s lawsuit against WGACA is emblematic of the broader challenges faced by luxury brands in safeguarding their intellectual property rights and brand integrity in the increasingly expansive secondary market. The legal battle serves as a microcosm of the intricate dynamics between luxury brands and resellers, shedding light on the complexities of navigating trademark laws and combating counterfeit sales in the evolving landscape of the fashion industry. About the Case Chanel has won its case against luxury reseller What Goes Around Comes Around (WGACA), after a nearly one-month trial. The jury ruled in favour of Chanel on all four counts, including trademark infringement, false association, unfair competition, and false advertising claims. Chanel maintains that WGACA has never sold counterfeit items and that the verdict was not about not selling a counterfeit but about selling items voided in Chanel’s database. Chanel is committed to protecting its brand and consumers against counterfeits of its intellectual property, and WGACA maintains no wrongdoing. The ruling establishes boundaries within the luxury resale market and safeguards consumers against deceptive advertising and counterfeit products. Chanel has won a lawsuit against WGACA, which claims to have never sold counterfeit items. The company claims that the ruling was not about selling counterfeits but selling items voided in Chanel’s database. Chanel is committed to protecting its brand and consumers against counterfeits of its intellectual property. The ruling is expected to have implications on WGACA’s vetting and authentication processes, making it more costly for luxury secondhand retailers to operate. Secondhand platforms will need to increase their authentication and verification efforts and review their use of third-party trademarks in their advertising materials and social campaigns. Despite potential raised costs, the ruling is a net positive for the luxury resale industry, raising quality standards and ensuring that products are authenticated vintage items. The Chanel/WGACA dispute is far from over, with the next phase of the trial assessing damages. What is Vintage On 1 February, Justice Lewis Stanton raised the question of the definition of “vintage”, ultimately deciding that there isn’t a legal definition. This case could help determine that definition as one with a high burden of proof, Lakha says. An item being made in a Chanel facility isn’t enough to render it ‘authenticated’ or ‘vintage’, she says. “The court found that the item has to bear a Chanel serial number and be put into its system. Based on the fact that so many brands are now manufactured and white labelled in the same facilities, items being registered in a brand’s system is the only real way to show authentication.” The bag’s serial number is what gives it its resale value, she argues. This ruling shows that vintage is defined through the method a brand can authenticate its items. Therefore, profiting on non-point-of-sale items bearing the Chanel logo could be seen as false advertising since those items were never really authenticated,” Lakha says. “Selling those Chanel point-of-sale items without the manufacturing, or quality control that Chanel provides would be no different than someone asking an artist to replicate a Chanel item or design for a fraction of the price.” Chanel released the following statement once the verdict was reached. “Chanel would like to express its deep gratitude to the jury for their service during the trial, which lasted nearly one month. Conclusion Chanel welcomes the ruling, which demonstrates Chanel’s unwavering commitment to protecting consumers and its brand against all false associations, trademark infringement, counterfeiting, and false advertising. Such infringements hurt consumers and harm Chanel’s goodwill and brand because they are likely to confuse the public as to the nature of the CHANEL-branded items they are purchasing. Second-hand platforms, when they operate with transparency about the CHANEL-branded items they sell and cooperate with law enforcement and Chanel can help in the fight against counterfeiting. We look forward to the next phase of the trial, which relates to damages”

Digital Fashion: Who Owns the IP Rights In the fast-evolving fashion world, a new frontier blurs the lines between technology, art, and intellectual property (IP): digital fashion. This growing sector, which involves creating, designing, and selling clothing and accessories in virtual environments, has raised complex questions about intellectual property rights. With avatars, virtual try-ons, and non-fungible tokens (NFTs) becoming increasingly popular, the question of who owns the IP rights digitally is now at the forefront of the conversation. What is Digital Fashion Digital fashion refers to virtual clothing and accessories that exist purely in the digital world. These garments, designed by digital fashion houses or individual designers, are created using 3D modelling software and can be worn by avatars in virtual spaces, video games, or on social media platforms. Many digital fashion creations are sold as NFTs, providing a new means of ownership and authentication in the digital realm. Brands like Balenciaga, Gucci, and Prada have already ventured into the digital fashion world, offering exclusive, virtual-only collections. Meanwhile, emerging digital-native fashion labels like The Fabricant and Auroboros are pushing the boundaries of creativity with entirely virtual collections. Digital fashion is no longer a niche market but is beginning to take hold of mainstream culture. Who Owns the IP In the digital fashion space, ownership is a nuanced issue. While the creator or designer typically holds the copyright for the digital garment, the consumer may not necessarily have rights beyond possession of the specific NFT. The designer retains control over how the garment is used and licensed, but the NFT holder has the right to display or use the garment within the confines of the platform on which it was purchased. Creator’s Rights: The designer of a digital garment holds the copyright to the creation and any modifications made to it. This means they can license the design to brands or other digital platforms. However, many digital fashion creators are still grappling with how to protect their IP in an open, decentralized environment where designs can be easily replicated, altered, or remixed. The existence of NFTs helps to address this challenge, offering a way to authenticate and prove ownership, but the digital nature of the garment means it can still be copied and circulated without the creator’s consent in some cases. NFT Holders and Consumers: Consumers who purchase digital fashion items as NFTs own the specific token associated with the item. This gives them the right to use, display, or resell the NFT, often within virtual environments or social media. However, their rights do not extend to the underlying IP of the design. For example, a person who buys a digital dress from a designer may own the NFT of that dress but cannot mass-produce the design or alter it for commercial use without the creator’s consent. Platforms and Marketplaces: Online platforms that sell or host digital fashion items, such as Decentraland, The Sandbox, or DressX, are also part of the IP rights discussion. These platforms may have terms of service that dictate how digital fashion is used, shared, or resold. Depending on the agreement, these platforms might exert some control over the distribution of digital fashion, or they may merely serve as intermediaries. In either case, they don’t automatically own the IP rights to the digital items, unless specifically stated in their terms. Collaborations and Licensing: Digital fashion has opened up new opportunities for collaborations between traditional brands and virtual designers. For example, a high-end fashion brand might work with a digital designer to create a virtual collection or launch a brand collaboration on a metaverse platform. In these cases, ownership of the designs and the underlying IP is often negotiated upfront in licensing agreements. These agreements may specify how the digital items can be used and whether the rights are exclusive or non-exclusive. Conclusion Digital fashion has redefined the concept of ownership, and with it, the traditional understanding of intellectual property rights. While digital garments can be copyrighted, their ownership and use are complicated by the proliferation of NFTs, virtual environments, and decentralized platforms. As the digital fashion space continues to evolve, the challenge will be developing clear and adaptable frameworks for protecting IP rights while fostering creativity and innovation. Until then, both creators and consumers must navigate a dynamic and often uncertain landscape where ownership of virtual assets is still being defined.

Louis Vuitton, one of the world’s most renowned luxury fashion brands, has set the standard for excellence in design, craftsmanship, and exclusivity. Founded in 1854 in Paris, France, Louis Vuitton began as a maker of high-quality luggage, specializing in custom trunks for the elite. Over the years, the brand evolved into leather goods, ready-to-wear, accessories, and footwear, but it has always remained synonymous with luxury and craftsmanship. The Evolution of Louis Vuitton Louis Vuitton’s story began with the vision of its founder, Louis Vuitton Malletier, who sought to create functional yet aesthetically beautiful luggage. His trunks, featuring a flat top and a distinctive monogram canvas, revolutionized how people travelled. The brand’s iconic Monogram canvas, created in 1896 by Vuitton’s son, Georges Vuitton, quickly became a symbol of both practicality and prestige. This monogram remains one of the most recognizable brand patterns in the world today. Louis Vuitton’s transition from a small trunk-making business to a global luxury brand can be attributed to several strategic moves. In 1987, the company merged with Moët Hennessy, forming the Moët Hennessy Louis Vuitton (LVMH) conglomerate. This merger positioned Louis Vuitton to become a part of a luxury empire, allowing it to expand its global footprint and diversify its product offerings. The Power of Innovation What sets Louis Vuitton apart from other luxury brands is its ability to balance tradition with innovation. While the brand retains a strong connection to its heritage, it has never shied away from reinvention. Under the creative direction of Marc Jacobs, who served as the artistic director from 1997 to 2013, Louis Vuitton became a leader in high-fashion collaborations. The brand’s collaborations with renowned artists such as Takashi Murakami, Richard Prince, and Stephen Sprouse infused a new, contemporary spirit into its collections, appealing to younger, fashion-forward consumers. The collaborations were a stroke of genius, turning limited-edition pieces into coveted items and further establishing Louis Vuitton as a brand that understands the intersection of art, culture, and fashion. The 2001 collaboration with Murakami, in particular, is often seen as a milestone in the brand’s evolution, creating bags and accessories featuring colourful versions of the classic monogram. This strategy not only broadened the brand’s appeal but also helped elevate its cultural relevance. Louis Vuitton’s commitment to innovation continued with the appointment of Virgil Abloh as the Men’s Creative Director in 2018. Abloh, known for his streetwear influence and as the founder of Off-White, brought a fresh, youthful perspective to the brand. His appointment marked a pivotal moment in the fashion industry, bridging the gap between luxury fashion and street culture. Abloh’s designs, such as the iconic “Louis Vuitton x Nike” sneakers, exemplify the fusion of high fashion with contemporary urban trends. Craftsmanship and Exclusivity At the heart of Louis Vuitton’s brand lies a commitment to exceptional craftsmanship. The brand’s products are still made by skilled artisans who undergo rigorous training to uphold the brand’s standards. Each piece, from the famous Louis Vuitton Speedy bag to the custom trunks, is created with the utmost attention to detail and precision. This dedication to quality, paired with the brand’s ability to maintain an air of exclusivity, has made Louis Vuitton a symbol of status. Louis Vuitton’s strategy of scarcity has also played a significant role in its success. Limited editions, seasonal collections, and exclusive collaborations ensure that the brand’s products are always in high demand. By limiting production and keeping tight control over distribution, Louis Vuitton maintains its allure and ensures that owning a piece is a mark of distinction. The Digital Transformation In recent years, Louis Vuitton has embraced digital platforms to expand its reach while maintaining its luxury image. The brand has adopted e-commerce and online marketing as part of its strategy, offering customers the opportunity to buy products from the comfort of their homes. Social media channels like Instagram, YouTube, and Twitter are leveraged to tell compelling brand stories, showcase collections, and engage with younger audiences. Moreover, Louis Vuitton’s virtual runway shows and presence in gaming and virtual reality have signalled its efforts to connect with a tech-savvy, digital-native consumer. These innovative approaches help the brand remain relevant in a rapidly changing market while preserving its exclusivity and prestige. Conclusion Louis Vuitton’s continued success can be attributed to its unwavering commitment to craftsmanship, innovation, and exclusivity. By blending tradition with contemporary relevance, the brand has managed to remain at the forefront of the luxury fashion industry for over a century. As Louis Vuitton continues to push boundaries, it stands as an example of how heritage, creativity, and strategic vision can come together to create a timeless brand.