ARTICLE
28 October 2024

The IP Armor: How Indian Fashion Designers Are Combating Counterfeits

Ka
Khurana and Khurana

Contributor

K&K is among leading IP and Commercial Law Practices in India with rankings and recommendations from Legal500, IAM, Chambers & Partners, AsiaIP, Acquisition-INTL, Corp-INTL, and Managing IP. K&K represents numerous entities through its 9 offices across India and over 160 professionals for varied IP, Corporate, Commercial, and Media/Entertainment Matters.
Garment designers bring fabrics to life as works of art that grab the attention of the audience and thereby set trends in the beautiful world of fashion. But beneath the glitter of runway lies a serious matter.
India Intellectual Property

The Growing Concern of Fashion and IP Counterfeiting in India

Garment designers bring fabrics to life as works of art that grab the attention of the audience and thereby set trends in the beautiful world of fashion. But beneath the glitter of runway lies a serious matter of theft of intellectual property. The threats of counterfeiting, imitations, and design piracy pose massive threats for designers since they erode creative legacy and dilute brand values. It's a landmark victory by the Delhi High Court that granted an ex-parte ad interim injunction recently in favor of ace fashion designer Gaurav Gupta against people brazenly copying his signature designs, as much a legal triumph as saving this innovation by Gupta but transmitting a strong message about how important it is to innovate in fashion. It is a turning point; such demand for robust IP protection within an industry in which creative expression itself is currency and imitation always challenges growth.

Counterfeiting: An Expanding Problem

From the streets of a lively street market to popular online platforms, a fake version of any popular high-end designer product is available for a fraction of the cost. The issue is not limited to luxury brands; even independent designers and local artisans find their unique creations replicated and sold without permission. Both desire and accessibility drive India's vast and diverse market. Many consumers, lured by the affordability of counterfeit goods, often knowingly purchase knock-offs. Unaware of their purchases' impact on the original creators, others unwittingly contribute to the counterfeit economy.

The Cost of Counterfeiting

Counterfeiting is not an attack on revenues but rather against the originality and the integrity of the designs and the brands of designers. Those one-of-a kind pieces were drenched in big times, efforts, and resources that it actually puts into use and then sold out at a fraction of the cost to people.

It can be equally disastrous for an international brand that is looking to enter the Indian market. The existence of spurious goods dilutes the brand equity for the consumer who gets confused and loses his faith in the authenticity of the label. Crap spurious goods relate the brand more often than not to low quality which again spreads damage for the reputation.

Independent designers and small fashion labels are therefore priced out of action because lawsuits are cost- and time-intensive processes and are not a viable option for long, drawn-out litigation processes. Small labels cannot sustain drawn-out lawsuits, certainly not against big, well-organized counterfeiters.

The Gaurav Gupta case

In the case of Gaurav Gupta, the designer approached the Delhi High Court as a means of legal redress for the rampant counterfeiting of his signature fashion designs. This case revolves around an increasingly all-too-common tussle within the fashion industry-unauthorized replication of unique designs which is an attack both on brand identity and the livelihood of the creators themselves.

Key Facts of the Case:

The problem of Piracy: Gupta's designs had now become one of the piracies that were produced and sold. These piracies were available both in street markets and on the net at a minuscule fraction of the originals. What further watered down the brand image and quality standards was the low-quality material used and missing minute details that characterize Gupta's work.

Given the ready availability of these spurious products, Gupta felt an immediate necessity to approach the Delhi High Court for some legal protection concerning the integrity of his brand and its prevention from further deterioration. He sought an ex parte ad interim injunction- that is, a legal order to put a halt to the use or selling of such counterfeiting activities even before an opportunity was given to the alleged infringers to present their case in court. Ordinarily, such an injunction is granted when the party seeking relief would suffer a clear and immediate risk of damage.

Court Judgment: The Delhi High Court passed the ex-parte ad interim injunction in favour of Gaurav Gupta. The court ordered the infringers immediately to halt and cease making reproductions and selling his signature designs. This gave much needed relief legally for Gupta since it brought the halt in the sale of counterfeited articles pending the further litigation of the case. It also sent a message across to the counterfeiters and by extension to the entire fashion world that in this regard, IP theft would not be acceptable.

The unauthorized repetition of Gupta's designs infringed on Gupta's rights to intellectual property and is an overt attack on the originality and craftsmanship he gave behind his work. Considering the level of counterfeiting and the extent it could be disposed to perpetrate harm against Gupta's venture, the court intervened directly by taking measures that barred further damage.

Demystifying the Injunction: What It Means for Designers

The legal significance of an ex-parte ad interim injunction cannot be overemphasized. This is a temporary order which is issued without hearing from the infringing parties and serves to instant relief to designers like Gupta. It shuts off the activities of the infringer and puts a halt on further brand damage while the case is properly examined. This is the crucial step for fashion designers that will be able to take quicker steps against IP theft without being exposed to the lengthy legal process before the court intervenes.

The Legal Landscape: Understanding Intellectual Property Protection in Fashion

Intellectual property law forms the foundational structure of legality under which rights are granted uniquely to creators, inventors, and businesses over their innovations, designs, and artistic manifestations. To the fashion industry, IP laws play a role in preserving the distinctive nature of the brand's design, trademark, and brand elements-protecting the same from unauthorized use and duplication in order to foster creativity and innovation. Some of the most basic forms of IP protection that are available to be used by fashion brands along with their importance, are summed up as under:

  1. Trademarks:

Scope of Protection: Trademark refers to logos, brand name, slogans, or other symbols that are distinguishable and indicate the origin of a product from one company which may be distinct from another. In fashion, it is not only the brand name and its logo but also a signature design element, pattern, and various lines of products.

Legal Mechanism: The trademark registration gives a legal right that no one will be allowed to use identical or similar marks without permission, thus interfering with consumers; a brand can bring an action against counterfeiters who have used its registered trademark logo without permission.

  1. Design Patents (or Registered Designs):

Scope of protection: A design patent covers the ornamental features of a product - and that would include shape, pattern, or configuration, including in clothes and accessories. The scope of protection here is with a unique visual appearance rather than functional attributes.

Legal Mechanism: For novelties as simple as a new shape of a handbag, or an innovative textile pattern, designers can obtain design patents to protect their creative expressions, thus preventing any third party from manufacturing, selling, or using designs substantially similar to the patented ones.

  1. Trade Dress:

The scope of protection for trade dress lies in the overall visual appearance of a product or its packaging, and this scope comprises color schemes, layout, and design. It is an extension of trademark protection focusing on the distinctiveness of the presentation of a product.

Legal Mechanism: It safeguards the fashion brand, for the aspect of trade dress, which is protection against the imitation of unique presentation styles. For example, if a brand is so well known because of a particular packing style or for an iconic color combination, then it can be used to restrict competition from appropriate designs that may mislead the consumers into thinking they are buying the brand.

  1. Geographical Indications (GI):

Scope of Protection The geographical indication protects the product characterized, known, or recognized by some intrinsic qualities of the geographic origin. Very relevant concerning traditional textiles or artisanal crafts where the origin matters in the fashion sector.
Legal Mechanism: Protection of Geographical Indications ensures that only the producers located in the specific geographical area can market their products under the associated name. For instance, "Banarasi Silk" can be used only for silk fabrics woven only in the Banaras region so that authenticity and cultural identity are preserved while others do not misuse the name

The Way Forward

A holistic approach is required to combat counterfeiting in the fashion industry in India. Brands need to be more proactive in protecting their IP-their trademarks, patents, copyrights-and this has to be done both domestically and abroad. Designers also need to be proactive about what they design and will be able to authenticate these products with technology, sell them through reputable e-commerce sites, and educate consumers on how to purchase authentic products.

At the policy level, there is much more to be made of strengthening existing IP laws. Collaboration between law enforcement agencies, e-commerce platforms, and the fashion industry can help curtail the counterfeit market. Simplifying legal processes and providing more support to small designers will encourage them further to protect their IP and fight counterfeiters.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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