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CRI 200 Chapter Notes - Chapter -: Anne Klein, Fashion Design, Copy Control

Creative Industries
Course Code
CRI 200
Jeremy Shtern

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WEEK #7 READINGS: THE PIRACY PARADOX: Innovation and Intellectual Property in
Fashion Design by Kal Raustiala and Christopher Sprigman, Virginia Law Review
The fashion industry produces a huge variety of creative goods in markets larger than
those for movies, books, music, and most scientific innovations, and does so without
strong IP protection
The fashion industry profits by repeatedly originating creative content, but the industries principal
creative element - its apparel designs - is outside the domain of IP law
standard theory of IP rights predicts that a lot of copying will destroy the incentive for
new innovation, yet fashion firms continue to innovate at a rapid clip (opposite from what
is predicted by the standard theory)
Fashion firms take sig., costly steps to protect value of their trademarked brands, but
accept that appropriation of designs is a fact of life
argument: copying fails to deter innovation in the fashion industry because, copying is
not very harmful to originators = "piracy paradox"
I. The Fashion Industry
A. Fashion Industry Basics
fashion industry's products are typically segmented into broad categories forming what
has been described as a fashion pyramid
top: a designer category that includes three different types of products
a very small trade in haute couture (custom clothing designed almost
entirely for women and sold at very high prices) (Giorgio Armani, Dolce
and Gabbanna, Calvin Klein) - more fashion content; faster design
larger business of prestige collections and lower-priced bridge collections offered
by many famous designers (Armani, CK, etc. ) - more fashion content; faster
design change
"better" fashion, an even larger category that consists of moderately priced
apparel (Anne klein, Ann Taylor, etc.) - Less fashion content; slower design
basic or commodity category (Old Navy, WalMart, Target) - Least fashion
content; slowest design change
difference between ^ categories is price, many firms producing high-end apparel have
bridge lines
degree of concentration is relatively low - no single firm represents a sig. share of total
industry output
in the deconcentrated fashion industry, where economic theory would suggest needs IP
protection more, enjoys the lower degree of protection
B. Copying in the Fashion Industry
1. Copy Control via Cartelization: The Fashion Originators' Guild
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find more resources at oneclass.com
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