Edition 5 – Spring 2012

LAW À LA MODE

Fashion, Retail and Design Group

Christian DiorReflecting on the emergence of the

key symbols of the brand

BurberryFrench Court rules the iconic check

is a valid trade mark

Armor LuxA Word from the Industry’s Mouth

Rules of Engagement for the Fashion Blogosphere

How Landlords and Planners Can Dilute Your Brand

Preserving the Value of Your Intellectual Property

French Real Estate Specific Regulations for Retail Stores

Internet Sales in a Selective Distribution Network

ContentsContentsChriStian Dior 04 Reflecting on the emergence of the key symbols of the brand

FrEnCh rEal EStatE 06 Specific regulations for retail stores

Warning SignS 07 How landlords and planners can dilute your brand

BurBErry 08 French Court rules the iconic check is a valid trade mark

no CookiE-CuttEr Solution 10European Commissioner voices her concerns over website cookies law

PrESErving thE valuE oF your intEllECtual ProPErty 12 A UK perspective

intErnEt SalES in a SElECtivE DiStriBution nEtWork 13 The issue is partially resolved

a WorD From thE inDuStry’S mouth: armor lux 14 Snapshot on French know-how and the Breton shirt history

rulES oF EngagEmEnt For thE FaShion BlogoSPhErE 16 Our regular social media insight

BuSinESS rounD-uP 18 The latest in industry news

CalEnDar 20 Our round-up of what’s on this season

02 | Law à la Mode

With a French editorial team bringing you this fifth edition of law à la mode, we are delighted to give you a flavour of the capital of fashion and a little glimpse of the French atlantic Coast.

there is a law à la mode for every season and here comes Spring, probably the most anticipated season, with its numerous fashion weeks around the world and the first opportunities of the year for people to enjoy the great outdoors after the cold winter months. this Spring freshness and liberation is undoubtedly what women felt (and can still feel) with the collections of Christian Dior, a designer who revolutionized fashion in the 50’s-60’s by creating a “new women” image. in this edition, we discover Dior’s childhood home and examine what inspired his iconic “new look” design work. then, as Spring bursts into Brittany, we take a closer look with armor lux at the history of the Breton shirt and how it has developed from a traditional garment for sailors to being a fashion item worn throughout the whole world.

For a more legal perspective, we present the latest French real estate regulations for retail stores, give some insights into how to protect your intellectual property and consider how landlords and planners can dilute your brand. as illustrations, you will see how Burberry is enforcing its trade mark in France and how levi’s is managing its brand in China.

With retail sales and communications being barely conceivable today without use of the internet, we analyse the ability of brand owners to control internet sales in a

selective distribution network, and how fashion brands and retailers can collaborate with fashion bloggers as part of an effective public relations and marketing strategy.

this issue also includes our regular business round-up; this time we look at an innovative charity which is re-using donated counterfeit clothes, consider a project for reviving the uk high street, and end on a “French” touch as we analyse the new French “Palaces” ranking for luxury hotels. Finally, don’t miss out on the calendar of fashion major events and Dla Piper seminars.

if you have any comments please get in touch with the Fashion, retail and Design group via our email: fashion@dlapiper.com.

We hope that you enjoy this Spring issue and wish you a happy Easter Season!

EditorialSpring Edition Blooming in Paris

EDItORIAL BOARD

Audrey Dagiste

Karine Disdier-Mikus

Laurence Julien-Raes

Lamiaa KheirBek

Laurence Julien-Raes

and Karine Disdier-Mikus (Paris)

www.dlapiper.com | 03www.dlapiper.com | 03

rEFlECting on thE EmErgEnCE oF thE kEy SymBolS oF thE BranD

CHRIStIAN DIOR

We were honored to interview Jean-Paul Claverie, President of the Christian Dior museum located in granville in normandy.

the Christian Dior museum is absolutely unique as it is the only one in the world dedicated to the designer. Could you please explain what the initial purpose of this museum was?

Villa “Les Rhumbs”, Christian Dior’s childhood home in Granville (Normandy), has been converted into a “Musée de France”, which is dedicated to the couturier and recognized by the French Ministry of Culture. The Villa was owned by the city of Granville and was renovated by the LVMH group in the 1990’s with a view to becoming a place of memory and history. Through permanent and special exhibitions relating to the designer and his work, the museum now attracts up to 45,000 visitors each year. The museum is now managed by Granville, Christian Dior Couture, Christian Dior Parfums, the LVMH group, and the Christian Dior association which gathers more than 100 private members.

The Villa was not only the home of the Dior family – who were well known in Granville for their industrial business – but was also the birthplace of Christian Dior and where he spent his childhood. Surrounded by a magnificent garden clifftop and overlooking the sea, the Villa remains the same today as when Christian Dior lived there. The first Christian Dior Couture collection was launched in 1947 and since then the themes for all of his collections have been inspired by Villa “Les Rhumbs”.

What is the permanent collection made of?

Open all year long, the permanent collection of the museum is made up of hundreds of objects, including dresses, drawings, paintings, Dior family photographs and other documents relating

to Christian Dior. The garden is also composed of a pergola, a rose garden, and furniture designed by Christian Dior

when he was a teenager.

04 | Law à la Mode

Could you tell us more about the foundation of the fashion house Christian Dior Couture?

It was in 1947 that Christian Dior, director of his fashion house Christian Dior Couture, which was established on the prestigious Avenue Montaigne in Paris, launched his first collection. Even after his death in 1957, Christian Dior remains one of the most famous French personalities, known throughout the world. Today the fashion house is emblematic of an art of living, fashion design and French know-how which still exists through nearby ateliers on avenue Montaigne.

how has the villa “les rhumbs” inspired Christian Dior’s collections?

All the symbols of Dior which we can still see in the collections of today are related to “Les Rhumbs”. For example, the oval shape with a tie was inspired by the style of Louis XVI and Napoleon III’s furniture in the living room of the Dior family; the iconic Dior grey and pink mirrors the colors of the facades of the villa, and the recurring image of a thrush in his collections represents his mother’s favorite flower which can also still be found in the Villa’s garden.

Christian Dior was also close to artists such as musicians, writers, and painters, many of whom he met whilst in his role as director of an art gallery (exhibiting Giacometti, Dali and Picasso) before the foundation of his fashion house was established. These artistic influences also inspired the design of many of his collections.

Could you explain what made him such a successful business man?

A few months after the foundation of the fashion house was established, Christian Dior decided to create his first perfume, Miss Dior. He was not only a business man but a visionary and modern man, understanding that perfume and other products would complement his collections, creating a collection for men, and opening stores abroad.

Christian Dior is now one of the most famous perfume houses in the world, whose success can be measured by the perfume J’Adore, which is the most sold perfume in the world.

Christian Dior was a remarkable personality; not only did he make a success of his fashion house business, he was also a great cook who loved to create recipes, he enjoyed theatre and to dress-up, and had many close friends who were musicians and writers.

how did Christian Dior expand the business abroad?

Dior became famous overnight in 1947 with the release of his first collection. Thanks primarily to American journalists, his fame spread abroad within a few months; especially when Harper’s Bazaar Chief Editor, Carmen Snow, claimed that “It’s such a New Look”. The “New Look” expression caught on and helped to characterize Christian Dior’s style. In a postwar war context, he succeeded in bringing joy, beauty, seduction, opulence, and femininity to his collections, and created a new image for the modern woman.

Also contributing to the international success of the fashion house were some of Dior’s first clients including celebrities such as Marlene Dietrich, Rita Hayworth, Eva Perón and many others. Through celebrity endorsement, Christian Dior Couture is credited as having one of the fastest rises to fame of any fashion house, with worldwide recognition coming within a matter of months.

Christian Dior capitalized on his new found fame and quickly opened stores in London, New York, and Latin America.

What is the next project for the museum?

The next exhibition, entitled “Stars in Dior”, opens in May 2012 and is dedicated to the cinema celebrities of the past who wore Dior in their daily lives, in movies or on the red carpet.

Laurence Julien-Raes and Audrey Dagiste (Paris)

www.dlapiper.com | 05

Specific regulations apply to the French retail industry in addition to the usual administrative authorizations (e.g. building permits). We discuss those authorizations which are required prior to the opening of a retail store in France.

COMMERCIAL ExPLOItAtION

The Royer law of 1973, which has been amended several times and inserted in the French Commercial Code, imposes a requirement for retailers to obtain an “authorization of commercial exploitation”. Retailers are required to obtain this authorization before a building permit is issued, where they wish to open a store with a sales area that exceeds the threshold of 1000 sq.m.

Obtaining an authorization is compulsory for the creation and extension of any retail store with a selling area of more than 1000 sq.m., as well as for the modification of the nature of the commercial activity of a retail store of more than 2000 sq.m (1000 sq.m when the store sells mostly food products).

The authorization is conferred by a departmental commission (Commission Départementale d’Aménagement Commercial) made up of five voting members including the local Mayor, which is convened under the chairmanship of the local Prefect. The beneficiary of the authorization can be the owner of the retail site, the landlord or the developer (in practice it is often delivered to the owner).

An “authorization of commercial exploitation” is also required when a retail store reopens after 3 years of inactivity (again where the area of the store exceeds the threshold of 1000 sq.m). In order to prevent such inactivity occurring in the first place, most commercial lease agreements now contain a provision under which the tenant has a continuing obligation to conduct business in the premises.

PuBLIC ACCESS

Retail stores are also subject to regulations concerning “public-access buildings” (établissements recevant du public), as set out in the French Construction Code. Public-access buildings are classified according to (i) their activity (e.g. sport facility, restaurant, bank, offices, retail shop etc.) and (ii) their capacity.

With regards to capacity, stores are divided into five categories, depending on the number of persons who have access to the premises – the first category being for public-access buildings with a capacity of more than 1500 persons and the fifth category being for much smaller stores.

Depending on the categorisation of a public-access building, the builders, owners or operators of such building must comply with various regulations regarding the safety of the people accessing it, including fire and safety regulations and accessibility to the premises for people with reduced mobility (personnes à mobilité réduite).

Owners of public-access buildings must obtain the authorization of the local Mayor (through the issue of a building permit) before beginning construction or extension works in their buildings, as is the case for the change of use of the building, as discussed above.

To do this a security commission (commission de sécurité et d’accessibilité) must firstly be consulted and they will either deliver a favourable or unfavourable opinion regarding those works to the Mayor, save for premises within the fifth category of public-access buildings. In particular the security commission must inspect the public access of the store for premises in the first to fourth categories. Once the report of the security commission has been delivered to the Mayor and one month prior to the opening of the store, the operator can request an authorization from the Mayor.

Finally, when the operator wishes to carry out fit-out works inside the premises, they must also request authorization from the local Mayor. Although the inspection by the security commission is not compulsory prior to any works inside the premises beginning, it is for public-access buildings in the 5th category .

FRENCH REAL EStAtE SPECIFIC REgULATIOnS FOR RETAIL STORES

Lionel Rosenfeld and Jennifer Atlan (Paris)

06 | Law à la Mode

How landlords and planners can dilute your brand

WARNING

SIGNS

For fashion retailers, how a store looks and feels is crucial to its success. Customers buy fashion goods not only because of the quality of the items but also because of brand identity, an identity that is reflected in a customer’s shopping experience.

For this reason it is important that European retailers are aware of certain restrictions that landlords and planners can impose. Some, such as restrictions in leases, can be successfully resisted if raised at any early stage while others must simply be acknowledged and alternative branding explored.

SIGNAGE APPROVALS

Many landlords of shopping centres and high-end retail streets will require tenants to seek approval for external signage as they wish to tightly control the appearance – and the investment value – of their property. Conversely, external signage is often vital to a retailer’s brand. One solution may be to exclude a need for approval where signage is consistent with their usual branding or to request a side letter giving retailers a personal right to dispense with approvals.

AtMOSPHERE

Many retailers, especially those catering to a younger market, seek to attract customers with music while some have even begun hiring nightclub-style bouncers, leading to queues of teenagers crowding around the property. This may add excitement, but many leases contain restrictions on noise from within the property being audible outside, whilst where a store is within a shopping centre, it is unlikely it will be permitted to use common areas as an extended marketing area.

RECRuItMENt

In the UK, tenants are now commonly being asked to sign up to obligations to only recruit people from the local vicinity or go first to government job exchanges before filling vacancies. Some retailers are happy to comply with these obligations, however many strongly resist, believing that selective recruitment of suitable staff is key to brand offering.

LIStED BuILDINGS AND OtHER PLANNING REStRICtIONS

In areas of historic interest, public authorities may impose obligations upon retailers to alter their branding and signage in a way that is sympathetic to the character of the area. These obligations are generally absolute, however they should be flagged to design teams as early as possible so that they can ensure delivery of a mutually satisfactory exterior.

CONCLuSION

When retailers want to begin trading as soon as possible it is often tempting to sign up to whatever covenants their landlords seek to impose. In many cases this is not a problem as landlords generally want to see tenant businesses thrive. However, where a landlord/tenant relationship has deteriorated (or where a more desirable tenant is identified), landlords may review lease restrictions and take action where there are breaches. Defending these actions will not only be costly, but compliance may result in a serious dilution of brand offering.

Paul Jayson and Jeremy Liebster (London)

www.dlapiper.com | 07

Burberry French Court rules the iconic check is a valid trade mark

While trade mark protection for colours or a combination of colours and patterns is somewhat difficult to obtain, and thereafter to defend (see the luxury shoe designer Christian Louboutin’s difficulties in having his red-sole trade mark validated in the US), Burberry’s trade mark for its iconic check pattern seems to be less troubled, at least on the validity side.

In a recent decision, the French Court of Appeal in Paris ruled that Burberry’s Community trade mark registration no. 003950037 was distinctive for the goods and services claimed in the registration, including for umbrellas. The other side was held to have failed to prove that the check pattern had become generic in the loyal and constant course of trade at the time of its filing (2004). On the contrary, in examining the cross-hatched designs filed by the other side in the case, the Court held that Burberry had established that its check pattern distinguished itself from the ones provided and was therefore distinctive.

08 | Law à la Mode

The Court also dismissed the other side’s claim that the Community trade mark registration filed in black and white without any colour claim was not sufficiently distinctive to be protected as a trade mark according to Article 4 of the Council Regulation (EC) no 40/94 of 20 December 1993 on Community trade marks, which provides that “a Community trade mark may consist of any signs capable of being represented graphically, particularly words, including personal names, designs, letters, numerals, the shape of goods or of their packaging, provided that such signs are capable of distinguishing the goods or services of one undertaking from those of other undertakings”. The Court thought differently and considered that Burberry’s trade mark, even when filed in black and white, was perfectly able to fulfill the essential function of a trade mark, which is to distinguish the products and services of its holder from the ones provided by another enterprise.

However, this favorable decision was far from predictable, particularly considering that tartan/plaid patterns are hardly a recent invention; the earliest evidence of tartan is found in ancient Celtic populations, and the fabric flourished between 400 BC to 100 BC!

The success story of Burberry’s iconic check since as early as 1920, and its notoriety, helped to obtain this favorable decision on the distinctiveness of Burberry’s trade mark.

However, as famous as it may be, the infringement action brought by Burberry against the other side’s use of a similar tartan/plaid pattern on umbrellas was dismissed by the French Court because of the visual differences between the patterns and their distinct overall impression.

This is yet another illustration of the difficulties that trade mark owners may have in enforcing their trade mark rights on colours or combinations of colours and patterns, even if they are successful in passing the validity stage…

Karine Disdier-Mikus (Paris)

www.dlapiper.com | 09

NO COOKIE-CuttER SOLutIONEuroPEan CommiSSionEr voiCES hEr ConCErnS ovEr WEBSitE CookiES laW

Neelie Kroes, the European Commissioner for the Digital Agenda, has blogged about her concerns that the new law on cookies could lead to more consumer confusion not less. The new rules should have been in force across the European Union by May 2011, but some Member States are not up to date with implementation and those who are may be taking a diverging approach to enforcement. In a recent posting on her blog, Kroes noted that the guidance provided by some national regulators, and the lack of guidance from others, is leading to “different interpretations, sometimes, or even confusion about what the rules mean and how to comply with them”. She added that some of the tools and services that have been developed to deal with the key issue of cookie consent are based on different interpretations of the law and the “diversity of resulting approaches” is confusing to website users.

Since the original battles over cookies in the E-Privacy Directive of 2002, website and other online operators in the EU have been obliged to give users “clear and comprehensive information” about cookies and why they are used. Most operators have included specific text in their online privacy policies explaining how browser settings can be changed – effectively allowing users to opt-out of using cookies. Despite this, e-commerce research has often shown that the average user is still unsure as to what exactly cookies are and what choices they have. In 2009 the E-Privacy Directive was updated with the aim of encouraging users to make better informed decisions online. The new law requires that in addition to providing information about cookie use operators must now also obtain the user’s consent (save for limited exceptions).

Unsurprisingly, given the prevalence of cookies, these rules have proved controversial. Consumer e-commerce and online advertising operators have been particularly concerned at how consent mechanisms can be implemented without damaging business models and the overall user experience. A range of industry groups have been grappling with the issues. The European Advertising Standards Alliance and the Internet Advertising Bureau of Europe have been working

towards a solution for informing users about cookies in online advertising based on a recognisable warning icon that signals to users that certain types of cookies are being. This would allow users the opportunity to signal their consent to behavioural advertising or to specify the types of advertisements they are happy to see. This system is due to come into force in June 2012. The International Chamber of Commerce is working on its own cookie compliance guide with some similar ideas.

Such attempts to find workable solutions – not only by industry but also by local law makers and regulators – has, though, led to concerns, as expressed by Ms Kroes, that there are now diverging approaches to cookie compliance. EU privacy watchdog the Article 29 Committee has

Mary Mullen & Duncan Calow

10 | Law à la Mode

contributed with its own doubts about some suggested ways forward. So far, however, specific alternative guidance has been lacking. Instead, the European Commission seems to be focusing on the longer term solutions of developing next generation browser settings in line with the “opt-in” requirement and a global “Do-Not-Track” (DNT) standard – as being discussed in the US and elsewhere. Matching EU requirements with developing global standards is obviously the right way forward but these technical solutions will not be possible with most current software, so they do not provide much immediate help for organisations trying to become compliant now.

The fashion industry, like all consumer-focused sectors looking to develop ever more sophisticated fixed and mobile e-commerce activities, targeted marketing and other online brand development, must take account of the new regulatory landscape. We have been working with many of our clients, on a cross-border basis, to develop robust but workable solutions tailored to their specific online activities.

uK APPROACH

The revised law on cookies was implemented in the UK on 26 May 2011. At the time, the UK’s Information Commissioner’s Office (the ICO) announced a one year grace period, up to May 2012, for organisations to become compliant and has issued guidance notes recommending steps that organisations should be taking to achieve compliance, namely:

checking what types of cookies are used on a site; ■

assessing how intrusive of user privacy they are; and ■

deciding how best to obtain consent in each case. ■

The UK’s guidance makes it clear that a key focus of the ICO is creating a well-informed user so that a shared understanding of what cookies are and how they work will develop between operators and users. In the long run it is hoped that well informed users will make gaining consent easier. Another long-term goal is the development of web browsers that deal with the consent requirement but the ICO has expressly stated that a browser solution is not likely to assist compliance in the short term.

www.dlapiper.com | 11

PRESERvIng THE vALUE OF YOUR InTELLECTUAL PROPERTY A UK Perspective

In the early 20th Century, a Judge in England coined the phrase “what is worth copying is worth protecting”, and in relation to your intellectual property rights that phrase is as relevant today as it was then. Particularly in the fashion industry, an industry which operates on planned obsolescence, the industry needs to be smart in the way that it chooses to protect and enforce its intellectual property.

In England, the industry has traditionally been much more successful in protecting and preserving the value of its trade mark rights, than relying on design right protection. A properly protected trade mark can be lucratively licensed by its proprietor. Against that, design rights (which protect any aspect of the shape or configuration of the whole or part of an article) are often seen by the industry as hard to obtain and difficult to enforce. A number of design right enforcement cases have failed; for example, Lambretta Clothing back in

2004 failed- to persuade the court that particular colours applied to a sports top could have design right protection. By contrast trade mark rights can be relatively cheaply obtained and efficiently enforced (criminally) by the trading standards officers.

The difficulties faced by businesses in registering and enforcing designs is an issue which was highlighted by Professor Ian Hargreaves in his report “Digital Opportunity: an Independent Review of IP and Growth” in May 2011. Following on from the Hargreaves report, in September 2011, the UK IPO issued a call for evidence for comments on how the UK intellectual property system could better support the design industry.

In response to the call for evidence, on 19 December 2011, the UK IPO has published its “Assessment of the Need for Reform of the Design Intellectual Property Framework” (http://www.ipo.gov.uk/hargreaves-designsassessment.pdf). The report has acknowledged that “many design owners have had their ideas copied, in many cases blatantly. They report that the costs of enforcing their rights in the UK courts are prohibitive to seeking civil remedies….They argue that criminal sanctions should be introduced for this activity.”

The report has also acknowledged that reforms such as these would require primary legislation, and that further consultations are to be expected before any reforms can be implemented. It is important that the interests of the fashion industry are made known in these further consultations, to give design law in the United Kingdom more relevance and efficacy.

Ruth Hoy (London)

Digital Opportunity: an Independent Review of IP and growth

Many design owners have had their ideas copied, in many cases blatantly. They report that the costs of enforcing their rights in the UK courts are prohibitive to seeking civil remedies….They argue that criminal sanctions should be introduced for this activity

Professor Ian Hargreaves

12 | Law à la Mode

The Court of Justice of the European Union (CJEU) recently issued a ruling on the legality of a clause that had the de facto effect of precluding members of a selective distribution network from engaging in internet sales.

Pierre Fabre Dermo-Cosmétique (PFDC) is a producer and merchant of cosmetic and personal care products. The general terms and conditions of the selective distribution network required sales to be made in a physical space in the presence of a qualified pharmacist, which had the de facto effect of preventing all internet sales.

Following a first negative ruling by the French competition authority (which fined PFDC for anticompetitive practices, holding that this clause excessively restricted the commercial freedom of PFDC’s distributors), PFDC brought the case before the Court of Appeal of Paris, which referred the matter to the CJEU for a preliminary ruling on the following questions: (i) did the de facto ban on internet sales by authorized distributors in a selective distribution network constitute a restriction per se, (ii) was the clause covered by the block exemption provided by Regulation 2790/1999, (ii) and if not, could the contract be potentially eligible for an individual exemption?

The CJEU applied a classical method to its analysis of the antitrust legislation (article 101 TFEU). On each of the three questions it held:

(i) Article 101§1 TFEU prohibits all agreements between undertakings which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the internal market. The CJEU considered that a de facto prohibition of any internet sales constituted a restriction per se (and so was incompatible with article 101§1 TFEU) if the clause could not be objectively justified. The CJEU then excluded the two most commonly used arguments to justify such a clause, considering that neither (i) the necessity to provide customers with personal advice to ensure their safeguard nor (ii) the necessity to protect the prestigious brand image, constituted a legitimate purpose justifying such a clause.

(ii) In principle, an agreement which is anticompetitive under the meaning of ar ticle 101§1 TFEU, may nevertheless be exempted pursuant to article 101§3 TFEU (individual

Marie Hindré-Guéguen and Jocelyn Goubet (Paris)

or block exemption). However, the CJEU held that the agreement had as its object the restriction of passive sales to online end users outside the distributor’s area and consequently excluded the application of the block exemption.

(iii) The CJEU held that it did not have enough elements to appreciate whether the agreement could benefit from an individual exemption, and left this point to be determined by the French courts.

Although the CJEU did not provide a clear answer to the questions asked, it is clear that the prohibition of internet sales constitutes an anti-competitive restriction. In reality, each case will turn on its facts so we could eventually see such a clause being justified, even individually exempted, but unfortunately the CJEU did not provide any concrete advice for such an analysis in practice to be made.

This case highlights the hurdles which luxury brands face when using selective distribution networks to generate and control brand exclusivity. Bearing in mind the CJEU’s rejection of “maintaining a prestigious image” as a legitimate aim for restricting competition, brand owners must ensure they are comfortable that their network conditions either apply equally to online and bricks/mortar distributors – or at least any differences are objectively justifiable on the basis of the practical distinctions between the two retail structures.

intErnEt SalES in a SElECtivE DiStriBution nEtWork The issue is partially resolved

www.dlapiper.com | 13

Snapshot on French know-how and the Breton shirt history

A WORD FROM THE INDuStRY’S MOutHARMOR Lux

Jean-Guy Le Floch Managing Director of Armor Lux

armor lux was founded in 1938. how did it all start?

The company was founded in Quimper by Walter Hubacher, a young Swiss entrepreneur who decided to create and manufacture quality underwear. I took over Armor Lux in 1994 with a childhood friend, Michel Gueguen. Together, by staying faithful to its history and its values, we succeeded in developing this great company.

We have read that the 3 values of armor lux are “Quality, tradition and Ethics”. Could you explain what makes armor lux unique and what its main characteristics are?

In Quimper we have unique knitted textile expertise, based especially on maintaining perfect control over the manufacturing process. The brand has managed to renew its collections over time in order to attract a wider and more family orientated clientele, who are attracted to the quality of the products and the conditions under which they are manufactured. The company has also diversified into new markets such as corporate wear and uniforms for large companies or public services. Finally, we have maintained our workforce (550 employees in France) and this is our greatest pride.

armor lux is known for being a responsible company committed to sustainable development. Could you tell us a bit more on your social responsibility programs?

Among our key commitments, we can list promoting diversity (women are strongly recognized within the company – 78% of the workforce, 53% of executives), using manufacturing Photo credit: Didier truffaut

14 | Law à la Mode

processes which are respectful of human health and environment, supporting organic and Fairtrade networks (Armor Lux is the first distributor of Max Havelaar Fairtrade certified cotton with over 2 million products sold since 2005 and with a 26% market share) and finally contributing to the development of our region by supporting Breton culture, maritime heritage and high level sports.

Who is now in charge of the development of the armor lux apparel ranges and the design of the ready-to-wear collections?

We have an in-house research department creating 1,500 new styles each year. We also work with freelance designers in order to adapt our products to market changes and trends, and to meet the expectations and needs of our customers.

the Breton shirt, armor lux’s most famous piece, was initially a traditional garment and has now become a fashionable item to have in any wardrobe. how do you explain this trend and how has it impacted your collections?

The Breton shirt has been rooted in our maritime history since the mid-nineteenth century. This is a garment that makes sense, which is exactly what consumers are looking for today, especially as more people become concerned each day about the impact of globalization on the social and environmental quality of textile products. Of course the Breton shirt is the key style in our collection and is available in many cuts and colours which are constantly being renewed. Hence it has now become the emblem of Armor Lux.

armor lux is well established in France with new concept stores launched in 2004. Where and how is the brand distributed abroad?

Armor Lux is distributed through department stores, retailers and mail order catalogues in Europe (Germany, Great Britain, Denmark, Switzerland, Italy, Ireland, Sweden), North America (U.S., Canada) and Asia (Japan, Korea). In exports, the potential is real. We just have to capitalize on it.

how do you manage to combine both national brand promotion and expansion into new markets with the historical Breton heritage of armor lux?

The history of our company is strongly linked to Brittany. We have a responsibility towards our employees and we have chosen to honor our commitments. This is not incompatible

with our business targets. Our commitment to Brittany is a strength. Brittany promotes very positive values that are expressed through quality brands and products. Our stores are located on the outskirts of medium sized towns, and combine retailing of clothes, textile accessories and local cultural and food products.

to conclude, what do you foresee for the armor lux brand in the near future?

Armor Lux still has a bright future ahead. We will develop our distribution network in Brittany of course, but also within France, with the opening of a 1,500 sqm store west of Paris this year.

Armor Lux is an ensign of its own and this is good news for the brand’s fans.

Laurence Julien-Raes and Audrey Dagiste (Paris)

Photo credit: Didier truffaut

www.dlapiper.com | 15

During the past several years, fashion and personal style blogs have emerged as a unique media outlet, covering all aspects of the industry as quickly as news develops. Topics range from trends and gossip, to new products and individual bloggers’ personal style. It now seems de rigueur for fashion retailers, luxury brands, and department stores to collaborate with these bloggers to energize their brand image, increase e-commerce traffic, and attract new customers.

RULES OF EngAgEMEnT FOR tHE FASHION BLOGOSPHERE

Fashion brands have engaged in individual partnerships for years, including those with celebrities, stylists, and magazine editors, to further their public relations and marketing goals . But the latest twist to this strategy empowers average people who have distinguished themselves amongst incessant internet chatter to hone an unprecedented social network. through thoughtful navigation, bloggers have developed quantifiable influencing power, evidenced by page views, blog traffic, and twitter followers. the result is a generation of individuals who consider themselves professional bloggers; they negotiate strategic product placement; collaborate on editorial content; appear in media campaigns; and are often seated in the front rows at fashion weeks.

While traditional public relations efforts may seem to be tested through many layers of bureaucratic approval, blogger collaborations appear authentic and innovative. this resonates with consumers effectively and makes it necessary to develop new marketing and public relations policies that are tailored to this outlet. Whether recruiting a “mommy blogger” to test and review new children’s products or tapping an agency-represented fashion blogger to style a media campaign, here are some considerations that will ensure that your journey on the road towards the blogosphere is smooth.

PLAY BY tHE

REGuLAtIONS

Ensure that the bloggers you work with disclose their brand partnerships in compliance

with local rules and regulations. In September 2009, the U.S. Federal Trade Commission (the “FTC”)

released a policy governing bloggers’ disclosure of “material connections” to advertisers, such as monetary compensation or free products. The FTC continues to consider the best manner for enforcement and we expect further development in this area. Other

countries may also oversee bloggers’ product endorsements through their respective

advertising regulatory authorities and regulations tailored to bloggers

may be on the horizon.

CONSIDER A

MuLtIFACEtED StRAtEGY

Successful bloggers are effective because they maximize their influence. They have mastered tools such as Twitter, Facebook, and Foursquare to extend their impact. Collaboration across multiple social

media platforms will ensure that your brand receives broad exposure

to the blogger’s network.

16 | Law à la Mode

RULES OF EngAgEMEnT FOR

Ann K. Ford and Kiran N. Gore (Washington DC and new York)

as the blogosphere and social media continue to erode the difference between the professional opinion of a well-known editrix and the amateur point of view of a fashion blogger, fashion brands should be sure to continually evolve their public relations, marketing efforts, and policies in order to engage with social media in the most current and effective way. as with anything in fashion, reap the benefits of today’s hottest trend before it becomes it becomes tomorrow’s outdated has-been.

CHOOSE CAREFuLLY

Collaborate with a blog that has an audience that suits your company’s branding.

Bloggers are constantly concerned about overexposure and “selling out” and dissatisfied readers will instantaneously

turn to social media to express their thoughts about a bad collaboration. In turn, bloggers are often resistant to handing over editorial control to corporate partners for the sake of compensation. But if it’s a worthwhile collaboration, corporate partners stand to benefit from this loyalty. Bloggers build connections with their readers that brands simply cannot duplicate through traditional advertising. The blogger’s

autonomy is why his or her endorsement of a brand or product has value. Familiarity with the blogger’s prior

content will ensure that the relationship is smooth and mutually beneficial.

NEGOtIAtE EFFECtIVELY

As the value and influence of fashion bloggers has increased, their

expectations for corporate collaborations have similarly shifted. Many fashion bloggers are

now represented by talent management firms, which have traditionally represented models, writers, and celebrities. This changes the tone of negotiations and increases the sophistication,

professionalism, and compensation expectations of bloggers, who see

themselves as tastemakers and pseudo-celebrities.

StRuCtuRE ExPECtAtIONS

Partnership between brands and bloggers can be structured in any manner to reflect a

unique vision. Be clear on what role the blogger is expected to play in the broader public relations and

marketing strategy. Minor collaborations may include inviting a blogger to parties or fashion shows in exchange for coverage

in a blog post; mentioning your brand’s name or product in a Tweet or Facebook post; providing free merchandise in exchange for a review and product placement; or purchasing ad space on the blogger’s website. Major collaborations are more demanding, such as hosting a party for vogue’s Fashion’s night Out; guest blogging on a company blog for a pre-defined

period of time; co-designing and marketing a product; or even featuring the blogger in a media campaign.

The collaboration can be a one-time project or an ongoing brand partnership with

many layers.

tRACK VALuE

Monitoring blog comments, page views, and trackbacks will help

measure the value of your collaboration and reap the benefits of a dynamic social

network. These analytics can be channelled to improve future public relations and marketing efforts depending on the results being measured. For example, aiming to

increase e-commerce sales will require a different strategy than aiming to

increase visibility of your products.

www.dlapiper.com | 17

the latest in industry news

tHE PORtAS REVIEW ON HIGH StREEt REVIVALMary Portas, an English retail adviser and journalist, who is credited for turning Harvey nichols into a leading modern fashion brand and the star of Tv show Mary Queen of Shops, was in May 2011 appointed by the UK government to lead an independent review into the future of the High Street. She published her report “The Portas Review” in December 2011 which aims to “put the heart back into the centre of our High Streets, re-imagined as destinations for socialising, culture, health, wellbeing, creativity and learning”. The review, which recommends town centres to run more like businesses, details 28 specific recommendations which include cutting regulations for High Street traders, affordable town centre parking and the launch of a national market day. Portas has also launched a competition with local government minster grant Shapps to select 12 struggling towns and cities to become blueprints for the recommendations. The Portas Pilots will benefit from a share of £1 million, as well as the support of Shapps, Portas and Whitehall to reinvigorate their ailing High Streets.

Laura Duckworth (London)

FROM COuNtERFEIt tO FIt-FOR-CHARItYFor most seizures of fake designer clothing, their ultimate destination is a landfill site or an incinerator. However, thanks to the inventiveness of ‘His Church’, a UK Christian charity, there is now another, rather more altruistic option. Operating out of a warehouse in Lincolnshire, the charity takes seizures of counterfeit garments, removes the fake labels and replaces them with its own “HIS” branding. The clothes, which unlike normal charity donations are all brand new, are then gifted to vulnerable groups including the homeless and women’s shelters.

Far from being a flash in the pan initiative, the charity has managed to convince 90% of British Trading Standards authorities to support the project, as well as the Metropolitan Police, the City of London Police and customs. And the word is spreading; His Church are now even receiving shipments from as far afield as the United States.

Whilst crime doesn’t pay, this is one project which is certainly changing lives...

Rebecca Kay (London)

business round-up

18 | Law à la Mode

Lamiaa KheirBek (Dubai)

Rebecca Kay (London)

NEW RANKING AWARDED tO LEADING FRENCH LuxuRY ‘PALACE’

CLASHES IN EuROPE OVER ACtA

With a typical French touch, the “Palace distinction” has recently been given to nine deluxe hotels in France. This new hotel ranking was created, by ministerial order on 8 november 2010, in recognition of French-style excellence. It is awarded to 5-star hotels on the basis of several criteria, some mandatory and some “à la carte”. Those “à la carte” criteria include the hotel’s excellence in its value, location, historical features, aesthetic appeal and services on offer. As a new category of accolade,

the “Palace distinction” is intended to give an international, commercial and reputational boost for France’s most chic hotels. So next time you visit the City of Light and walk past a distinctive ‘Palace’ plaque on the facade of george v, le Meurice, le Bristol and only a few other hotels, you will be safe in the knowledge that they are the very best luxury hotels around!

In the Winter edition of Law à la Mode, we analysed the pending Anti-Counterfeiting Trade Agreement (“ACTA”), an international trade agreement which it is hoped will help countries across the globe to work together to tackle large-scale intellectual property rights violations. Following the signature of the agreement by countries such as the US, Canada and Japan in October, a further twenty-two European nations gave their approval in a ceremony on 26 January 2012. Under EU legislation, ratification from all the remaining 5 EU member states and the European Parliament remains necessary before the agreement can take legal effect in the EU.

However, in the last few months the agreement has sparked outrage across Europe, with people taking to the street in protest in cities such as Munich, Prague and Paris. In Poland, members of the government donned guy Fawkes masks, while on 27 January 2012 Kader Arif, the appointed

rapporteur for ACTA in the European Parliament, handed in his resignation. The main focus for the anti-ACTA campaign is a fear that it will limit freedom of speech online, and concerns that it has been negotiated “in secret” by EU “bureaucrats”.

As the debate spiralled, the E.U. Trade Commissioner Karel de gucht has opted to refer the treaty to the European Court of Justice to “We are planning to ask Europe’s highest court to assess whether ACTA is incompatible – in any way – with the EU’s fundamental rights and freedoms, such as freedom of expression and information or data protection and the right to property in case of intellectual property”.

The Court of Justice has not given a timeframe for its review, but stated that it will “take the time it deems necessary to look into all the issues in order to deliver a legally sound and independent judgement.” Until then, all that Europe can do is watch and wait.

www.dlapiper.com | 19

Calendar

Dla Piper is a global law firm operating through various separate and distinct legal entities.Further details of these entities can be found at www.dlapiper.com

Copyright © 2012 DLA Piper. All rights reserved. | MAR12 | 2254178

If you have finished with this document, please pass it on to other interested parties or recycle it, thank you.

www.dlapiper.com fashion@dlapiper.com

MARCH

“IMPACt: 50 Years of the CFDA”, the museum at Fit new york, February 10 – april 17

Paris Ready to Wear Fall/Winter February 28 – march 7

Diana Vreeland, Fortuny museum venice, italy, march 2012

Vendôme Luxury trade Show Paris, march 2 – 5

Ethical Fashion Show, Paris, march 2 – 4

MICAM Shoevent, milan, march 4 – 7

Ethical Fashion Show, Paris march 2 – 4

“the total Look: the Creative Collaboration Between Rudi Gernreich, Peggy Moffitt, and William Claxton” moCa Pacific Design Center, los angeles march 3 – may 20

MIPEL the bag show (101 Edition), milan, march 4 – 7

MICAM Shoevent, milan march 4 – 7

trade marks, Copyrights and Patents 2012 trends Dla Piper Paris office, march 8

Los Angeles Fashion Fall/Winter march 8 – 18, 2012

Hong Kong Wedding & Overseas Wedding Expo 2012, march 9 – 11

“Louis Vuitton Marc Jacobs,” a retrospective of Jacobs’ work at Louis Vuitton, les arts Décoratifs Paris, march 9 – September 16

Footwear and Leather Goods International Fair, milan march 11- 13

Los Angeles Fashion Weekend Fall/Winter march 16 – 18

tokyo Fashion Week, Fall/Winter march 18– 24

“Bribery and the Fashion Industry: When is a free handbag considered a bribe?” Dla Piper/Brunswick breakfast seminar, london march 21

Mercedes-Benz Russian Fashion Week march 21 – 25

“the Fashion World of Jean Paul Gaultier: From the Sidewalk to the Catwalk”, De young museum, San Francisco march 24 – august 19

“Yves Saint Laurent – the Retrospective”, Denver art museum, Denver, Colorado opens march 25

Leather and the Environment Conference 2012, hong kong march 27

Fashion Access, hong kong march 28 – 30

“Christian Louboutin,” a retrospective of the designer, Design museum, london march 28 – July 1

APRIL

“Fifty Years of James Bond Style” with pieces from Giorgio Armani, Prada, Oscar de la Renta and other designers the Barbican, london, april 2012

Dubai Fashion Week Fall/Winter, april 7 – 14

London Alternative Fashion Week, april 16 – 20

Milan Design Week, april 16 – 22

Shanghai Fashion Week Fall/Winter, april 17 – 23

Fashion Philosophy Fashion Week Poland, april 18 – 22

China Sourcing Fair: Fashion Accessories, underwear & Swimwear, Garments & textiles hong kong, april 27 – 30

India Sourcing Fair: Garments & Accessories, hong kong april 27 – 30

MAY

INtA’s 2012 Annual Meeting Washington, D.C., may 5 – 9

Stockholm Fashion Week Fall/Winter , may 6 – 12

“Elsa Schiaparelli and Miuccia Prada: On Fashion” the Costume institute at the metropolitan museum of art, new york, may 10 – august 19

“Roger Vivier: Process to Perfection” Bata Shoe museum, toronto may 10, 2012 – april 7, 2013

Cannes Fashion Week may 16 – 27

“Ballgowns: British Glamour Since 1950”, victoria and albert museum, london may 19, 2012 – January 26, 2013

Milano Moda Pre-Collection Spring, may 25

March 2012 – May 2012