Starting a legal fashion brand relies on building a solid and reliable foundation to launch. The creativity involved in fashion opens you up to disputes that can damage the brand. The last thing you need is a court-ordered blockage before getting off the ground. So, from registering trademarks to contracts and NDAs, here are a few suggestions to get you started.
Formally Register a Business
One of the first steps for any startup is to formally register as a company. This places you on official records, such as Companies House in the UK, and registers your business for tax compliance. However, before company registration, you must decide what type of structure your company needs, such as an LLC or corporation. This matters because you will be liable for different tax regulations based on the structure, and you will need an EIN (US) or UTR (UK).
Register Company Trademarks
There is some confusion over trademarks and copyright. A trademark is something that identifies the brand, such as Disney’s mouse ears or Coke’s contour bottle. Copyright applies to any original creative works that are owned by the brand. Trademarks are critical for protecting the brand’s image and reputation, as well as helping with brand recognition. However, before applying for a trademark, make sure you have researched it well, or you could face a dispute.
Secure a Legal Fashion Brand with Copyrights
Around 25% of new businesses report suffering due to copyright problems, and you can protect your company legally with copyright. Any creative work can be copyrighted, including original artwork, graphic prints, and fabric patterns. However, it is hard to prove as evident with Forever 21’s many copyright cases. A physical product shape can be copyrighted if it is an original design with a high level of originality and/or considered ornamental instead of a utility.
Use Contracts and NDAs
Legal contracts can be your best friend when protecting your business. You can use contracts to ensure employees do their jobs, partners live up to their obligations, and third parties understand their boundaries. A signed contract can be a powerful legal backup when there is a dispute. Non-disclosure agreements (NDAs) are also vital for protection. They can help prevent company secrets from becoming public, but be aware that they don’t cover criminal acts.
Stay Compliant with Industry Regulations
Every industry has compliance regulations, and fashion is one of the most heavily regulated sectors in the world, and even more so in certain countries such as the US, UK, and Canada. For fashion brands specifically, there are laws around material sourcing, labour, and consumer rights. But you should also be aware of the legal issues around correct labelling, which must include fabric composition details, care instructions, and even the country of origin.
The Legal Side Of Launching A Fashion Brand
Formally registering the business is a solid first step to starting a legal fashion brand. You must also be careful when registering a trademark and dealing with copyright issues. Of course, any fashion brand is also subject to strict global and national compliance and regulatory laws.
