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The Importance of IP Due Diligence Before Launching Your Fashion Brand

Launching a fashion brand is an exciting venture, but it comes with a plethora of legal considerations that can make or break your business. Among these, intellectual property (IP) due diligence is paramount. This process involves carefully assessing and managing your brand’s intellectual property assets, particularly trademarks. By doing so, you can ensure you have the legal right to use them and protect them from infringement. This article will explore the significance of conducting thorough IP due diligence in an Australian context.

How Does Intellectual Property Apply to Fashion? 

Intellectual property in the fashion industry primarily encompasses trade marks, designs, and copyright. Trade marks protect your brand identity, while designs protect the aesthetic aspect of products. Furthermore, copyright protects original artistic works. Among these, trade marks play a crucial role in distinguishing your brand from competitors and building brand identity and loyalty.

What is the Role of Trade Marks?

A trade mark is a sign used to distinguish the goods and services of one trader from those of others. A trade mark can be a:

  • letter; 
  • number; 
  • word;
  • phrase; 
  • sound; 
  • smell; 
  • shape; 
  • logo;
  • picture; 
  • aspect of packaging; or 
  • any combination of these. 

Registering a trade mark grants the owner exclusive rights to use the mark in relation to the goods and services for which it is registered.

For a fashion brand, a trade mark can include the brand name, logo, and any distinctive patterns or symbols used in the product lines. These elements are integral to your brand’s identity and market presence, making it crucial to ensure they are legally protected.

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Why Conduct IP Due Diligence?

Avoiding Legal Disputes

One of the primary reasons for conducting IP due diligence is to avoid legal disputes. Before launching your brand, you must confirm that your intended trade marks do not infringe on existing registered trade marks. Infringement can lead to costly legal battles, potential rebranding, and a loss of reputation. By conducting a comprehensive search and assessment of existing trade marks, you can identify potential conflicts and address them proactively.

Securing Exclusive Rights

Registering your trade mark provides you with exclusive rights to use the mark in relation to the specified goods and services. This exclusivity is crucial for protecting your brand from unauthorised use by competitors. IP due diligence helps ensure that your trade marks are registrable and not likely to be opposed by third parties, thereby securing your exclusive rights.

Building Brand Value

A strong trade mark portfolio enhances the value of your brand. Investors and partners often look at the strength and scope of a brand’s IP assets when making investment decisions. By conducting thorough due diligence and securing robust trade mark protection, you can build a valuable asset base that contributes to your brand’s overall worth.

What is the IP Due Diligence Process?

Preliminary Trade Mark Search

The first step in IP due diligence is to conduct a preliminary search to identify existing trade marks that may conflict with your intended marks. This search can be done through IP Australia’s trade mark database. By doing so, you can identify potential obstacles early in the process and consider alternative marks if necessary.

Comprehensive Trade Mark Search

Following the preliminary search, conduct a comprehensive search to uncover any unregistered trade marks that could pose a risk. This includes searching for common law trade marks, which are marks that have been used commercially but not registered. Engaging an IP professional, such as a trade mark lawyer, can be beneficial in conducting a thorough and accurate search.

Assessment of Trade Mark Registrability

Once potential conflicts are identified, assess the registrability of your intended trade marks. This involves evaluating the distinctiveness of the marks and ensuring they do not fall under the categories of marks that are not registrable under the Act, such as marks that are deceptive, scandalous, or too similar to existing marks.

Trade Mark Application

If your intended trade marks pass the registrability assessment, the next step is to file a trade mark application with IP Australia. The application process involves providing details of the mark, the goods and services it will be used for, and paying the necessary fees. 

It is advisable to seek the assistance of a trade mark attorney to ensure the application is correctly filed and to handle any potential objections that may arise during the examination process.

The Role of the Trade Marks Act 1995 

The Trade Marks Act 1995 (the ‘Act’) governs the legal framework for trade mark registration and protection in Australia. It outlines the requirements you must fulfil for trade mark registrability, the application process, and the rights you receive with a registered trade mark. Understanding the Act is essential for conducting effective IP due diligence and complying with Australian trade mark law.

The Act provides mechanisms for opposing trade mark applications, rectifying trade mark records, and enforcing rights through infringement actions. By adhering to the requirements and procedures set out in the Act, you can safeguard your fashion brand trade marks and leverage them as valuable business assets.

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Trade Mark Essentials

This guide explains the essentials of trade marks and the steps required to register a trade mark.

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Key Takeaways

In the competitive fashion industry, IP due diligence is a critical step before launching your brand. By thoroughly assessing and securing your trade marks, you can avoid legal disputes, protect your brand identity, and build a valuable asset base. The Trade Marks Act 1995 provides the legal framework for trade mark protection in Australia, and understanding it is essential for effective IP management. Investing time and resources in understanding your IP rights can pave the way for a successful and legally sound fashion brand launch.

If you have any questions or need assistance with registering a trade mark, contact our experienced trade mark lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1800 532 904 or visit our membership page

Frequently Asked Questions

What happens if I do not conduct IP due diligence before launching my fashion brand?

Failing to conduct IP due diligence can result in legal disputes, rebranding costs, and potential damage to your brand’s reputation. You might infringe on existing trade marks, leading to costly litigation and the need to change your brand elements.

How long does the trade mark registration process take in Australia?

The trade mark registration process in Australia typically takes at least 7.5 months, provided there are no objections or oppositions. However, this timeline can vary depending on the specifics of your application and any issues that may arise during the examination.

Can I conduct IP due diligence on my own, or do I need a professional?

While it is possible to conduct preliminary IP due diligence on your own using online databases, engaging a trade mark lawyer or IP professional is highly recommended. They can provide a comprehensive search, assess registrability, and navigate the complexities of the application process, increasing the likelihood of successful trade mark registration.

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Mariah Saad

Mariah Saad

Lawyer | View profile

Mariah is a lawyer at LegalVision, working within the Intellectual Property, Trade Marks, and Commercial Law teams.

Qualifications: Bachelor of Laws, Bachelor of Communication, University of Technology Sydney.

Read all articles by Mariah

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