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	<title>Fashion Incubator &#187; Intellectual Property</title>
	<atom:link href="http://www.fashion-incubator.com/category/intellectual-property/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.fashion-incubator.com</link>
	<description>How to start a clothing line or run the one you have, better.</description>
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		<title>Selling your design business</title>
		<link>http://www.fashion-incubator.com/archive/selling-your-design-business/</link>
		<comments>http://www.fashion-incubator.com/archive/selling-your-design-business/#comments</comments>
		<pubDate>Tue, 31 Jan 2012 23:53:39 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>
		<category><![CDATA[Operations]]></category>
		<category><![CDATA[Small Business]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=10789</guid>
		<description><![CDATA[Someone I will call Jody writes:

<blockquote><em>Do you have any articles or information about how to sell or license a design?  Although I have streamlined and have one full time helper, the business has grown too big for me to handle on my own and I am interested in finding out if there are any companies out there that would be interested in buying my designs and brand. I have a small business making xxx from post-consumer apparel.</em></blockquote>

I've published several posts on selling your business which I'll link to as is appropriate to sort out these issues.
<ul>
	<li>What is she selling? The business? A license? The brand? The designs?</li>
	<li>How marketable are those elements as they would interest a buyer?</li>
</ul>
<strong>Background:</strong> Jody included a link to her website. Personally, I think her products are awesome (and you know how I resist making such pronouncements) and priced well (commensurate to their value) but there are two core problems that can affect the sale of businesses like hers.

First the downsides: With respect to licensing -this isn't going to happen, or it shouldn't. Only someone who is really green would buy a license and these people tend to not have much money so its a zero sum game. If you are toying with the idea of selling a license, keep in mind the option is limited to celebrities or very well established brands. A license is only good for an add-on product, it's not a take-over of your primary one. In other words, Ralph Lauren can sell a license to a sunglasses manufacturer but the license is worth nothing if RL stopped producing -which is what Jody wants to do. So unless you're Beyonce, Martha Stewart or Hello Kitty, cross licensing off your list of options.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/selling-your-design-business/feed/</wfw:commentRss>
		<slash:comments>8</slash:comments>
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		<item>
		<title>Forever 21 sued by Feral Childe</title>
		<link>http://www.fashion-incubator.com/archive/forever-21-sued-by-feral-childe/</link>
		<comments>http://www.fashion-incubator.com/archive/forever-21-sued-by-feral-childe/#comments</comments>
		<pubDate>Sat, 16 Jul 2011 04:05:03 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9744</guid>
		<description><![CDATA[<a href="http://www.feralchilde.com" target="_blank">Feral Childe</a> is a clothing line owned by Alice Wu and Moriah Carlson. You may remember the wonderful pattern puzzle challenge featuring one of their styles (part <a href="http://www.fashion-incubator.com/archive/pattern-puzzle-feral-childe/" target="_blank">one</a> and <a href="http://www.fashion-incubator.com/archive/pattern-puzzle-feral-childe-pt-2/" target="_blank">two</a>). As Alice has been an active and supportive member of our forum, I was more dismayed than usual to hear Forever 21 copied one of their fabric prints. Exactly. Unfortunately, this means Alice and Moriah had to hire attorneys to deal with the unpleasantness -as though they didn't have enough to do already. Below is a press release from their attorney announcing the lawsuit they've filed against Forever21 for copyright infringement.
-------------------------

DESIGN DUO FIGHTS BACK AGAINST INFRINGEMENT BY FOREVER 21
FOR IMMEDIATE RELEASE July 14, 2011
Los Angeles, California – Bi-coastal creative duo Moriah Carlson (Brooklyn, NY) and Alice Wu (Oakland, CA), who design together under the Feral Childe brand, have struck back at the blatant infringement by Forever 21 of one of Feral Childe’s original works of art. The company, through its attorneys at Doniger/Burroughs APC, has filed a copyright infringement lawsuit against Forever 21 in Federal Court in Los Angeles, alleging that Forever 21 has copied one of Feral Childe’s original hand-created designs, and created and sold apparel bearing this design. Below on the left you will see the original work, and on the right you will see Forever 21’s blatant knock-off:

<a href="http://www.fashion-incubator.com/wp-content/uploads/2011/07/FC_vs_F21.jpg"><img class="alignnone size-full wp-image-9739" title="FC_vs_F21" src="http://www.fashion-incubator.com/wp-content/uploads/2011/07/FC_vs_F21.jpg" alt="FC_vs_F21" width="601" height="274" /></a>

A review of the above makes clear that Forever 21 has continued in its campaign to steal outright the creative output of some of the brightest minds in the apparel industry, and trample the intellectual property rights of others in an attempt to boost profits. Forever 21’s attempt to profit by misappropriating the work of Feral Childe, however, will not go unpunished.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/forever-21-sued-by-feral-childe/feed/</wfw:commentRss>
		<slash:comments>18</slash:comments>
		</item>
		<item>
		<title>Prada and post office</title>
		<link>http://www.fashion-incubator.com/archive/prada-and-post-office/</link>
		<comments>http://www.fashion-incubator.com/archive/prada-and-post-office/#comments</comments>
		<pubDate>Thu, 02 Jun 2011 01:24:22 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Admin]]></category>
		<category><![CDATA[Intellectual Property]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9523</guid>
		<description><![CDATA[I haven't run away to join the circus. Don't need to, I live in one. Seriously, I'm swamped with Mr. Fashion-Incubator upgrading the wiring and lighting in my shop so it's a real disaster. It's times like this I'm even gladder I married him. For the last 25 years, I've had to do it all myself. Now I can fetch and carry food and beverages and sigh and lament that it's not all done <em>this instant</em>! Don't get me wrong, it's great if you can do your own electric but it's even better if you don't have to. Hopefully it will be done this evening because I have a class starting tomorrow. That's what is really going on. I won't have much time to spend on site over the next few days but I will be checking my email if you need something.

<a href="http://www.fashion-incubator.com/wp-content/uploads/2011/06/working_on_lighting.jpg"><img class="alignnone size-full wp-image-9525" title="working_on_lighting" src="http://www.fashion-incubator.com/wp-content/uploads/2011/06/working_on_lighting.jpg" alt="working_on_lighting" width="480" height="330" /></a>

In what scant time I had to read, there are two items to share from my feeds. ]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/prada-and-post-office/feed/</wfw:commentRss>
		<slash:comments>13</slash:comments>
		</item>
		<item>
		<title>Free speech, social media and employment policy</title>
		<link>http://www.fashion-incubator.com/archive/free-speech-social-media-and-employment-policy/</link>
		<comments>http://www.fashion-incubator.com/archive/free-speech-social-media-and-employment-policy/#comments</comments>
		<pubDate>Tue, 26 Oct 2010 21:24:42 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>
		<category><![CDATA[Operations]]></category>
		<category><![CDATA[employee]]></category>
		<category><![CDATA[Legal]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=7918</guid>
		<description><![CDATA[Most people don't know what is meant by free speech or the rights to which one is entitled. In the United States, only government bodies  are prohibited from restricting free speech. Private businesses have no or few restrictions in limiting what their employees say or even what they allow non-employees to say on their property. Of course there  are a few exceptions; the government can forbid citizens from yelling  "fire" in a crowded theater or "I have a bomb" in airport security  screenings. Likewise, employees who whistle-blow in the public interest  are protected from employer duress. As an employer, you have the right  to establish policies restricting employee expression and  unfortunately, may have the need to do so. If you don't have one already, it may be time to consider developing a social media policy for three basic reasons:
<ol>
	<li>Protect privileged business information</li>
	<li>Avoid lawsuits</li>
	<li>Good will</li>
</ol>]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/free-speech-social-media-and-employment-policy/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>How to get customer lists or How to get others to hate you</title>
		<link>http://www.fashion-incubator.com/archive/how-to-get-customer-lists-or-how-to-get-others-to-hate-you/</link>
		<comments>http://www.fashion-incubator.com/archive/how-to-get-customer-lists-or-how-to-get-others-to-hate-you/#comments</comments>
		<pubDate>Tue, 12 Oct 2010 22:29:14 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>
		<category><![CDATA[Newbies]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=7834</guid>
		<description><![CDATA[Again I lack a good title but both will serve nicely for this one.

These days it's very easy for me or anyone who knows you to collect sensitive contact information about your customers, sales reps, fabric sources, sewing contractors and finances. Best of all we don't even have to ask for it because you just send it to us. It's harmless to send it to me (I know for a fact that others have copied and pasted your juicier data into a database for their own use) but do you really want everyone -including your competitors- on your contact list to have that? I didn't think so. What's most shocking is who is doing it; everyone from computer neophytes to Ph.Ds in computer science.

So how is it that you are sending your most privileged sensitive business contacts to everyone you know however casually? That's easy, you're...]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/how-to-get-customer-lists-or-how-to-get-others-to-hate-you/feed/</wfw:commentRss>
		<slash:comments>5</slash:comments>
		</item>
		<item>
		<title>How to be sustainable, protect your IP and still make loads of money</title>
		<link>http://www.fashion-incubator.com/archive/how-to-be-sustainable-protect-your-ip-and-still-make-loads-of-money/</link>
		<comments>http://www.fashion-incubator.com/archive/how-to-be-sustainable-protect-your-ip-and-still-make-loads-of-money/#comments</comments>
		<pubDate>Wed, 01 Sep 2010 20:50:38 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>
		<category><![CDATA[Sustainability]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=7528</guid>
		<description><![CDATA[<a href="http://www.fashion-incubator.com/wp-content/uploads/2010/09/ostrich.jpg"><img class="alignright size-full wp-image-7529" title="ostrich" src="http://www.fashion-incubator.com/wp-content/uploads/2010/09/ostrich.jpg" alt="ostrich" width="170" height="207" /></a>My favorite books aren't about sewing but about building things sustainably. Like how to dig a well, build a water pump to plumb a home, pull stumps, how to make your own tools, sanitize drinking water with leach fields you build yourself -all without electricity or fossil fuel dependent machinery. There's a danger in being chained to the reliance of a complex power grid that could be withdrawn at any moment. I feel the same way about sewing. Wait too long and the low prices we've become accustomed to paying will evaporate. Asia can charge what they like, we won't have the choice of doing for ourselves once we've forgotten how or worse, no longer have domestic supplies to do it.

By way of illustration, Vesta sent me a link to a disturbing story about <a href="http://marketplace.publicradio.org/display/web/2010/08/31/pm-rare-earth-minerals-from-china-are-rarer/" target="_blank">the mining of rare earth minerals</a>, elements used in everything from hybrid cars to smartphones. We used to mine those in the US but in a "cost saving" gesture, we passed it off to China along with the intellectual property and tooling to do it. Last year, China implemented dramatic quotas to limit their rare earth mineral exports, now they're keeping the minerals for themselves. Meaning things like smartphones and hybrid cars will only be manufactured in China or locations they dictate and at the prices they charge or else. And it's not even that there's something nefarious behind it. With rising wages and living standards in China, they need materials to meet increasing domestic demand. Our problem is that we've forgotten how to mine the stuff cost effectively and we're sitting on 15% of the world's supply.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/how-to-be-sustainable-protect-your-ip-and-still-make-loads-of-money/feed/</wfw:commentRss>
		<slash:comments>10</slash:comments>
		</item>
		<item>
		<title>IDPPPA: Yet another fashion design copyright law</title>
		<link>http://www.fashion-incubator.com/archive/idpppa-yet-another-fashion-design-copyright-law/</link>
		<comments>http://www.fashion-incubator.com/archive/idpppa-yet-another-fashion-design-copyright-law/#comments</comments>
		<pubDate>Fri, 06 Aug 2010 14:09:57 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Design]]></category>
		<category><![CDATA[Intellectual Property]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=7420</guid>
		<description><![CDATA[I'm pleased to announce that Senator Schumer has introduced a new fashion design protection bill called the <strong>Innovative Design Protection and Piracy Prevention Act</strong>. The bill represents a workable compromise as compared to its highly problematic predecessor, the Design Piracy Protection Act (DPPA) which would have put <a href="http://www.fashion-incubator.com/archive/proposed-law-to-destroy-90-of-design-businesses/" target="_blank">90% of independent designers out of business</a> (and me along with them). The proposed new bill represents a compromise between the <a href="http://www.apparelandfootwear.org/" target="_blank">AAFA</a> and <a href="http://www.cfda.com" target="_blank">CFDA</a>. We also have your voices and advocacy to thank for making this possible.

I'll summarize the changes within the contexts that concerned us most and provide a link to an official press release once it becomes available (the only corroboration I've found this morning <a href="http://runway.blogs.nytimes.com/2010/08/05/schumer-bill-seeks-to-protect-fashion-design/" target="_blank">is a post</a> on Cathy Horyn's blog). Pending official confirmation, here are the biggies:

1. <strong>Design registration will not be required</strong> to protect your stuff. Under the earlier proposal, registration would have been required -if not by law- then for all practical purposes to avoid indemnity. Redux: your contractors and pattern makers are not going to refuse to work with you if you haven't registered your designs. Previously they would have because they could have been sued by someone who sued you however baseless or unjustified their case. Previously everyone would have been required to incur incredible legal costs just to sell anything. Now you only register if you want to.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/idpppa-yet-another-fashion-design-copyright-law/feed/</wfw:commentRss>
		<slash:comments>19</slash:comments>
		</item>
		<item>
		<title>IP Update: DPPA &amp; Fashion Law Blog</title>
		<link>http://www.fashion-incubator.com/archive/ip-update-dppa-fashion-law-blog/</link>
		<comments>http://www.fashion-incubator.com/archive/ip-update-dppa-fashion-law-blog/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 18:57:14 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Intellectual Property]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=6285</guid>
		<description><![CDATA[Three strikes, you're out! Yes? No? 
Apparently not. 

The Boston Globe <a target="_blank" href="http://www.boston.com/lifestyle/fashion/articles/2010/03/07/should_the_law_protect_fashion_from_knockoffs/">reports</a> that NY Senator Charles Schumer is preparing to reintroduce the <a target="_blank" href="http://www.opencongress.org/bill/111-h2196/show">Design Piracy Prohibition Act</a> for the fourth time. His latest effort has been buoyed by <a target="_blank" href="http://en.wikipedia.org/wiki/Jeannie_Suk">Jeannie Suk</a>, feminist cum fashionista at Harvard Law School who recently authored a paper entitled <a target="_blank" href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1323487">Law, Culture and the Economics of Fashion</a>. From the Boston Globe:

<i>Suk says she found it strange that there were laws in place protecting artists and writers, but not fashion designers. She was also concerned that this anomaly could deter people from going into fashion design.
</i>

Other than that there are existing laws and regulations to protect designers that aren't being enforced, I'll grant she knows more about law than I do but then I know more about apparel than she does. If the DPPA passes, our problem won't be limited to deterring people from coming into the industry, it'll be keeping the ones we already have alive. Under DPPA, every DE will have to spend incalculable thousands of dollars on legal fees to prove originality of their concepts or they're not going to find a contractor who will sew it up for them. They won't be able to find retail buyers either. Without indemnity, who wants to get sued and go to prison? ]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/ip-update-dppa-fashion-law-blog/feed/</wfw:commentRss>
		<slash:comments>20</slash:comments>
		</item>
		<item>
		<title>How to license fabric designs</title>
		<link>http://www.fashion-incubator.com/archive/how-to-license-fabric-designs/</link>
		<comments>http://www.fashion-incubator.com/archive/how-to-license-fabric-designs/#comments</comments>
		<pubDate>Fri, 19 Feb 2010 00:39:38 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Design]]></category>
		<category><![CDATA[Intellectual Property]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=6166</guid>
		<description><![CDATA[Apologies, this isn't a post telling you how you can get started in licensing your fabric designs. Rather, I'm asking you. I was approached by a worthy not for profit who is interested in licensing some artwork they own. The designs would likely be suitable for fabric to be used in children's wear, children's furnishings (rugs etc) and for retail fabric sale to include quilting. This party doesn't know how to go about navigating the complexity of it all. I wasn't much help beyond telling them how the system works, about PrintSource and providing some links to licensing related print publications. I'm not getting anything out of this but someone who provides these sorts of services would. It'd be great if you could post some ideas and resources. Thanks!]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/how-to-license-fabric-designs/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>Three reasons you&#8217;ll be knocked off pt. 2</title>
		<link>http://www.fashion-incubator.com/archive/three-reasons-youll-be-knocked-off-pt-2/</link>
		<comments>http://www.fashion-incubator.com/archive/three-reasons-youll-be-knocked-off-pt-2/#comments</comments>
		<pubDate>Wed, 06 Jan 2010 18:24:38 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Fulfillment]]></category>
		<category><![CDATA[Intellectual Property]]></category>
		<category><![CDATA[Newbies]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=5785</guid>
		<description><![CDATA[Picking up where we left off <a target="_blank" href="http://www.fashion-incubator.com/archive/three-reasons-youll-be-knocked-off-pt-1/">yesterday</a>, a little recognized way you make yourself a target for knock offs is if <b>you make it unnecessarily difficult to buy from you</b>. Don't make it so hard to buy from you that your customers go to your competitors and beg them to knock you off. It happens. More often than you'd know. Here's the back story:

My friend Andrea called me the other day. This is the same Andrea from <a target="_blank" href="http://www.fashion-incubator.com/archive/i-cant-think-of-a-spiffy-title-for-this-sales-rep-post-you-must-read/">I can't think of a spiffy title for this sales rep post you must read</a>. She's a retailer who does a bit of manufacturing to fill out her merchandising mix.  She's super-connected, whatever she says is solid gold. The long and short of it is you can unknowingly make purchasing so onerous that you drive your customers to your competitors but it's another thing entirely to be so roundly inhospitable <i>that your customers go to your competitors to ask them to knock you off.</i> In short, they want your product even if it means they have to go to someone else to get it. The issue here is not lower price, <b>it's terms</b> (see list of articles to read on terms at close). 

Here's a profile of Company C (being copied) and Company KO (knocking off). Both are privately held so no annual sales figures are unavailable.

<b>Company C</b>: In business since the late seventies, they didn't get much traction until ten years later (actually closer to 20) with a signature piece that got a lot of press and loyal customers. Apparently a good corporate citizen, everything is produced in the USA by 200+ employees. They sell moderately priced goods (daily wear) in 100 different colorways to both wholesale accounts and consumers directly. As evidenced by a 2 week shipping black out to take inventory (!), they appear to have serious fulfillment problems in spite of 30 years in business. Their wholesale customers are frustrated by their outdated wholesale policies. 

<b>Company KO</b>: Is much smaller (50 employees) and younger. While they also sell moderately priced goods, they're known for items that are more innovative, costly and exclusive ("date" wear) with high consumer and celebrity loyalty. Based in the US, production is off shore in a western European nation known for high quality craftsmanship and not inexpensive labor. With 40 colorways, they also sell wholesale and consumer direct. Wholesale accounts are pleased with this firm's sales and fulfillment policies.]]></description>
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		<slash:comments>7</slash:comments>
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