Enforcement of Fashion Laws

Beginning December 1, 2010, foreign-invested enterprises, foreign enterprises, and foreign individuals are now required to pay the city maintenance and construction tax as well as the education surcharge, from which these entities and individuals were formerly exempt. Prior to this regulation, the PRC levied those taxes only on Chinese-owned and funded enterprises and Chinese citizens.
 Continue Reading China Ends an Era of Special Tax Treatments for Foreign Companies and Individuals

On December 13, 2010, the Supreme Court affirmed Omega, S.A. v. Costco Wholesale Corp., 541 F.3d 982 (9th Cir. 2008), aff’d per curiam, No. 08-1423 (U.S. Dec. 13, 2010). Justice Kagan did not partake in the consideration or decision in this case.  Costco Wholesale Corp. v. Omega, S.A., No. 08-1423 (U.S. Dec. 13, 2010) (per curiam) (available here).  As the Supreme Court issued an unsigned per curiam opinion, there remains no binding Supreme Court precedent to guide courts in consideration of this issue.
 Continue Reading The Supreme Court Affirms Omega, S.A. v. Costco Wholesale Corp., Limiting The Use Of The First Sale Doctrine To Domestically Made U.S.-Copyrighted Works

On August 6, 2010 Senator Charles Schumer (D-NY), introduced a bill entitled the Innovative Design Protection and Piracy Prevention Act ("IDPPPA") (S. 3728), which represents a compromise between the American Apparel & Footwear Association ("AAFA") and the Council of Fashion Designers of America ("CFDA") in an effort to afford protection to American designers for new and original fashion designs.[1]
 Continue Reading The Innovative Design Protection and Privacy Prevention Act: Will Design Protection Be In Vogue in Congress?

Judge Harold Baer in Gucci America, Inc. v. Frontline Processing Corp., No. 09 Civ. 6925 (HB), 2010 WL 2541367 (S.D.N.Y. June 23, 2010), ruled that Gucci had sufficiently alleged facts to defeat a motion to dismiss in a suit brought against three defendant credit card merchant service providers for trademark infringement. The litigation stems out of an earlier action, Gucci America, Inc. v. Laurette Co., Inc., No. 08 Civ. 5065 (LAK) (S.D.N.Y. June 3, 2008), in which Gucci successfully sued defendant Laurette for operating a website, "TheBagAddiction.com," which sold counterfeit Gucci designs. Gucci later brought suit against three credit card merchant companies, Durango Merchant Services (a Wyoming corporation), Frontline Processing Corporation (a Nevada corporation principally operating in Montana), and Woodforest National Bank (a Texas corporation), alleging that those companies aided and assisted Laurette and other similar website operators in infringing Gucci’s marks. According to the allegations set forth in Gucci’s complaint, Durango established credit card processing services for web companies like Woodforest and Frontline that sold counterfeit products.  Gucci brought trademark infringement and counterfeit claims against Laurette based upon website sales of counterfeit Gucci products. Gucci alleged that the credit card processing services established by the three defendants were essential to Laurette’s sale of counterfeit Gucci products, and, for that reason, Durango, Frontline, and Woodforest were equally responsible for direct, contributory, and vicarious trademark infringement under the Lanham Act and New York state law. The defendants moved to dismiss the action on the grounds that the court lacked personal jurisdiction and that Gucci had failed to state a claim.
 Continue Reading Gucci’s Attempt to Extend Trademark Infringement Liability to Credit Card Merchant Service Providers Survives Motion to Dismiss

China celebrated its Customer Right Protection Day on March 15, 2010. The Administration for Industry and Commerce of Zhejiang province (the “Zhejiang AIC”) issued penalty decisions to several well-known international luxury brands such as Hermes, Hugo Boss, Dolce & Gabbana, Paul & Shark, Trussardi, Tommy Hilfiger and Versace based upon routine quality examinations which found goods sold in China to be substandard.
 Continue Reading International Luxury Brands May Face Product Quality Enforcement In China

On Friday, December 18, 2009, the Consumer Product Safety Commission ("CPSC")  issued a notice announcing a revision to the terms of the stay of enforcement of the stringent certification and testing requirements under the Consumer Product Safety Improvement Act ("CPSIA"). With regard to testing and certifying children’s products for compliance with phthalate levels, the stay is continued while the CPSC works toward finalizing the accreditation requirements for testing labs. Once standards for a particular category of product are published in the Federal Register, the responsible parties will have 90 days to achieve compliance with the testing and certification requirements.  For children’s products subject to lead testing requirements, the stay has been extended for an additional year, to February 10, 2011.[1]
 Continue Reading Testing Requirements Under Consumer Product Safety Improvement Act Stayed For Additional Year to February 10, 2011

On September 9, 2009, a federal judge in Maine agreed with retailers, marketers, and media companies that the recently enacted Maine law "An Act To Prevent Predatory Marketing Practices Against Minors" is likely unconstitutional. Nonetheless, the judge dismissed the challenge to the Act on the ground that the state Attorney General does not intend to enforce it.
 Continue Reading Court Challenge to Maine’s New Marketing Law Fails

In response to widespread criticism that the original deadline of February 10, 2009 set an unrealistic timetable for compliance, the Consumer Products Safety Commission deferred the deadline for companies to test children’s products for lead content for one year.  Lawmakers plan to introduce legislation exempting some small businesses from CPSIA and requiring the Commission to clarify the confusion created by the law.Continue Reading Consumer Products Safety Commission Defers CPSIA Testing Requirements One Year

It is estimated that consumers spent almost $100 billion on gift cards in 2007.  From the consumer’s perspective, a gift card is an attractive alternative to an actual gift because it is easy to obtain and reduces the hassle and guess-work of gift-buying.  From a retailer’s perspective, gift cards are a great way to attract new customers, strengthen brand loyalty, generate sales, provide an easy means of data-gathering, and reduce the costs of credit card processing.Continue Reading Gift Cards: The Good, The Bad And The Fraudulent

The LAPD and the Los Angeles County Sheriff’s Department coordinated the largest raid ever on the Santee Alley downtown LA shopping district in late 2007, confiscating $8 million in counterfeit goods and arresting 26 people.  Among the confiscated merchandise were designs copied from labels such as Prada, Rolex, Fendi and Gucci.  The LAPD wants to send the message that selling counterfeit goods will no longer be tolerated.Continue Reading Crimes of Fashion