U.S. Customs and Border Protection ("Customs") is proposing a change to the First Sale Rule that, if made, will force U.S. companies to pay millions of dollars in additional duties on the products they manufacture in foreign countries and import to the U.S.
Continue Reading...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...In an age of "knock-offs," patent protection is an avenue that can be used by the fashion and apparel industry to protect products. Every week, the United States Patent and Trademark Office grants dozens of patents on a diverse range of apparel and fashion accessories (for example, shoes, hats, handbags and clothing among other items). Most of these patents are "design patents." Under United States Patent Law, there are two broad categories of patents: "utility patents," which protect the way an invention is used and works, and "design patents," which protect the ornamental appearance of a useful article.
Continue Reading...The Ninth Circuit addressed the practical issues and challenges concerning the rights associated with domain names and trademark rights on the World Wide Web. In Perfumebay.com Inc. v. eBay Inc., No. 05-56794, the Ninth Circuit affirmed the District Court's broad injunction preventing Perfumebay from using the conjoined form of the word because such use created a likelihood of confusion with eBay. Perfumebay.com Inc. v. eBay Inc., No. 05-56794, 14521 (9th Cir. Nov. 5, 2007).
Continue Reading...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...In a recent decision, the U.S. Court of Appeals for the District of Columbia overturned the Federal Motor Carrier Safety Administration (FMCSA) truck diver Hours of Services ("HOS") rule that regulates the amount of time commercial truck drivers can operate their vehicles (Owner-Operator v. FMCSA, 494 F.3d 188 (D.C. Cir. 2007)). The current HOS rules, which were adopted in October 2005, provide for a daily driving limit of eleven hours followed by a ten hour rest period. Also, pursuant to the current rules, truck drivers may restart their weekly count of hours after they have taken a break of thirty-four hours. In its decision, the court reduced the maximum driving time to ten hours a day followed by an eight hour rest period and vacated the thirty-four hour restart provision in order to ensure highway safety and protect driver health.
Continue Reading...Piracy is not just a problem on the high seas or the internet: fashion designers have fallen victim, too. Current copyright laws protect only the artwork of a design, such as labels, logos, prints and embroidery. Leave off the label or change the logo slightly, and manufacturers and copy-cat designers have free reign to duplicate the cut, shape, style, and silhouette of an item of clothing or an accessory. This widespread practice of design piracy by popular retailers is legal…for now.
Continue Reading...A drive past the corner shops of downtown Los Angeles or Manhattan will give anyone an idea of how flagrant counterfeiters of fragrances can be, and how necessary enforcement has become. Unlike counterfeit handbags or apparel, fake perfume is applied to the skin and poses a special health risk to consumers, since some counterfeit fragrances include additives such as urine and antifreeze.
Continue Reading...Congress gave final approval to legislation that requires stricter screening of sea cargo containers bound for the U.S. at foreign ports. The bill will implement many of the recommendations of the 9/11 Commission to strengthen national security and help to prevent terrorist attacks (click here for full text of this bill). The bill has been opposed by large U.S. importers, the U.S. Chamber of Commerce and the American Apparel and Footwear Association, which pointed out that the cargo screening requirement will do little to increase security, is impractical and could have negative impacts on global trade and the U.S. economy.
Continue Reading...On June 1, 2007, the controversial new EU Regulation for the Registration, Evaluation and Restriction on Chemicals (“REACH”) came into force to regulate the use of chemicals in consumer products, including apparel, fragrances and cosmetics. The regulation’s most important goals are to improve the protection of human health and the environment while enhancing the innovative capability of the EU chemicals industry. Although European companies will be primarily hit by this regulation, US manufacturers exporting in the EU market must be in compliance as well.
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