Birkin Bag Suit Pits Antitrust Law Against Desire For Exclusivity

KM
Katten Muchin Rosenman LLP

Contributor

Katten is a firm of first choice for clients seeking sophisticated, high-value legal services globally. Our nationally and internationally recognized practices include corporate, financial markets and funds, insolvency and restructuring, intellectual property, litigation, real estate, structured finance and securitization, transactional tax planning, private credit and private wealth.
Intellectual Property Partner Karen Artz Ash and Associate Cynthia Martens authored an article for Bloomberg Law that examines the recent case, Cavalleri v. Hermès International, ...
United States Antitrust/Competition Law
To print this article, all you need is to be registered or login on Mondaq.com.

Intellectual Property Partner Karen Artz Ash and Associate Cynthia Martens authored an article for Bloomberg Law that examines the recent case, Cavalleri v. Hermès International, brought against Hermès by two California residents. The plaintiffs allege that the luxury brand violates the Sherman Antitrust Act and the California Cartwright Act, the state's law prohibiting anticompetitive activity, by requiring customers to buy other company products before they can purchase a Birkin bag, which has now become a status symbol that can cost up to tens of thousands of dollars.

Karen and Cynthia noted that "the desire for an exclusive experience transcends generations." In Ancient Rome, for instance, only nobility could afford to wear purple because it was produced using sea snails through a labor-intensive and expensive process. "By using its trademark to sell exclusivity, Hermès has artfully capitalized on this aspirational feeling," the authors said, adding that the brand champions its high-quality products as made by hand in France, sometimes by the same individual from start to finish, creating a "story of specialness" and "sense of exclusivity" for their products. Additionally, the brand's "unusually tight control" over the distribution of its handbags, which are not even sold in high-end department stores, contributes to its image.

While "exclusivity matters," the authors emphasize that companies should remember to seek antitrust counsel before exploring gatekeeping measures. Regardless of the outcome in the Hermès case, the company and fashion industry may find that similar accusations impact public interpretation of brand storytelling.

"Birkin Bag Suit Pits Antitrust Law Against Desire for Exclusivity," *Bloomberg Law, March 29, 2024

* Subscription may be required for article access.

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.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Birkin Bag Suit Pits Antitrust Law Against Desire For Exclusivity

United States Antitrust/Competition Law

Contributor

Katten is a firm of first choice for clients seeking sophisticated, high-value legal services globally. Our nationally and internationally recognized practices include corporate, financial markets and funds, insolvency and restructuring, intellectual property, litigation, real estate, structured finance and securitization, transactional tax planning, private credit and private wealth.
See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More