Dior 2021’s Byculla Roots: How better fashion laws can attract more revenues

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India is known for its passion of craft and robust sense of artistic culture. The recent Dior Couture Autumn Winter 2021-22 show was a similar buzzing collaboration between the French Luxury fashion House and a Mumbai based embroidery export house. It no secret that the fashion industry generates massive revenues and employment in the country, but the dismal quality of legal protection offered to this industry is quite a revelation. It is common for counterfeit products being sold in the market and plaguing the fashion industry. Hence, in terms of designs and prints, fashion houses and fashion creatives are often toiling due to the paucity of suitable protection.

Crimes such as fashion forgeries, counterfeiting, lifting, knockoffs are just the tip of the iceberg as the lack of protection for safeguarding the rights and interests of designers, artisans, craftsmen and others involved therein are currently emerging to be an alarming concern. In India, there are no laws that govern the fashion industry per say.  However, there are a comprehensive set of laws that protect and regulate the fashion industry. For instance, designs and artistic ideas can be protected under the ambit of IPR laws i.e. The Designs Act 2000, The Patents Act 1970, Trade Marks Act 1999, The Geographical Indications of Goods (Registration & Protection) Act 1999 and The Copyright Act 1957. Likewise, labour laws regulate the manufacturing processes, corporate laws oversee company related issues and banking laws govern the financial aspect of the same.

As an intellectual property right the value of Copyright, Trademark, Geographical Indication or Design Rights is to generate more value and surplus in the economy. IPR as commonly known is introduced to protect the creativity of human beings. On the one hand, it encourages human beings to be creative and innovative for the development of new and novel products, thereby, enhances competition in the market. On the other, it attempts to indicate the source of the good for confirming the integrity of the marketplace. Therefore, it is evident that IPR laws and fashion are interdependent. Having said that, considering the boom in the fashion industry post globalisation and the competition that is intensifying exponentially therein, it is crucial that some protectionist measures are established to encourage innovation and ensure the inflow of revenues.

Economic development of countries and IPR are intertwined as registration copyright, trademark, geographical indication or design right can help fashion communities and houses to develop a corporate image, brand value and reputation in the national and international marketplace. Registration of the same add value to the companies as it acts as it provides a competitive edge to the fashion houses which reflect upon the sales, profits and the brand value of the product and company. Also, registration of an IPR would also avoid any probability of an offence. The purpose of IPR laws is to ensure that the origin is clearly indicated, the creative ideas of a human are protected and at the same time it also assesses the implications of the natural, utilitarian and aesthetic features on market competition. Therefore, it has two-fold benefits which enables consumers to enrich their purchase decisions and provides perpetual protection to the owner of the creative idea. 

Theoretically, the aim of the law is to ensure that the potential and contribution of the traditional fashion community is protected and recognised. However, owing to its strenuous registration procedures, the same often causes a lot of hassle to the traditional fashion community, thereby, leaving their potential go unnoticed.  Moreover, the various expenditures associated with these registrations and the process of renewing the same in various countries drastically demotivates the aspirations of our traditional fashion segment.

Nevertheless, IPR laws can be a vehicle to augment the economic potential of our country as the fashion industry can play a dynamic role in encouraging and supporting innovation and creativity. Also, with the widespread influence of IPR at a domestic and international level, it provides an opportunity for Indian fashion brands and traditional communities to establish and protect their brand value in the global marketplace by generating revenue.

Author: Sonam Chandwani, Managing Partner at KS Legal & Associates

Co-author: Shweta Venuturupalli, Legal Associate at KS Legal & Associates

Disclaimer: The opinions expressed in this article are those of the authors.

Photo Credit: NOEMI OTTILIA SZABO

Sonam Chandwani

Sonam Chandwani is the Managing Partner at KS Legal & Associates and heads the firm’s Corporate Litigation Practice. She specializes in commercial structures, commercial litigation, mergers & acquisitions generally, with an emphasis on large-scale and complex commercial litigation including contract law, trade practices, real estate disputes, and finance issues across a range of industry sectors. She advises on insolvency matters and her expertise covers all forms of dispute resolution, arbitration, and mediation.

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