Can you legally sell designer clothing?

Discussion in 'Legal, Insurance, Employment and Health & Safety' started by Made In Italy, Apr 3, 2011.

  1. Made In Italy

    Made In Italy

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    There seems to be a great deal of confusion about this. I myself received a reply on one of my threads recently which stated that ' Stone island can only be purchased in official stores'...................absolute nonsense!

    You are legally free to resell any designer clothing provided it is authentic and silhouette proof. Note it has to be both authentic and silhouette proof.

    What exactly does authentic mean in this case. Designer clothing is authentic if it has been sold by the brand holder to one of their official clients. This means , for example , that so called ' factory goods ' are actually fakes. This is because when Armani sub contracts the production of say a model of jeans to a factory they will ask for a production run of , for talks sake 100,000 pcs. They will then supply all the material, thread, rivets, buttons, swing tags, wash labels , plastic bags etc. for exactly 100,000 pcs.Since they then uplift their 100,000 pc order where do the others come from? At best they may be made up from some left over material and accessories ( but how much of this can there be?), however , normally they are simply fakes run up by the factory to make some extra cash. They will be invoiced simply as jeans ( not mentioning Armani as he has received no royalties for these).

    How can you recognise these? firstly the price will be too cheap , no in season designer wear should cost less than 50% of retail at best. ( you cant realistically expect to pay less than an official client can you?) Secondly they often offer discounts for volume i.e. a price for 10 pcs, a cheaper price for 50 pcs and an even cheaper price for 100 pcs......if you are offered this kind of deal walk away.Thirdly, even if they were produced in the sub contracted factory ( highly unlikely that they would risk losing their contracts and , in Italy , jail, for this) they almost certainly will not carry the correct wash labels , buttons etc.
    Ok so now we know our goods are authentic , now we are OK right?.....wrong!

    As I mentioned earlier the goods have to be silhouette proof.What does this mean?

    This refers to a 1998 ruling by the European court of justice no less.Briefly the ruling means that any parallel goods from countries outside the EEC cannot legally be sold within the EEC ( interestingly for us they also confirmed that parallel trade within the EEC is not only permissable but desirable) Basically they decided that the 'rule of exhaustion' of trade mark right was a regional matter and not a global one.

    What does this mean for us? It means that you cannot buy goods from outside the EEC ( USA, China, India, Taiwan ,Indonesia etc.) unless they have a covering letter from the brand themselves stating that these specific items have been freed for sale in Europe. This letter is issued in very few cases.The goods are free for sale in Europe ( silhouette proof) if they were originally intended to be sold in that market i.e. if the first invoice was directly from the brand to a European client. In other words Armani from a US official client or distributor cannot legally be sold in Europe even if it is original.

    Hope this is of assistance. If you have any questions re these issues please feel free to contact us anytime on info@madeinitalydesignerclothing.com it is in all our interests to drive rogue traders out of this market.
    cpc and kwidzin like this.
  2. kbrix

    kbrix

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    This is a really helpful post. I learned a lot. Thanks.
  3. jayjay24

    jayjay24

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    Perfect. In a recent case I was able to prove the product had been put on to the market within Europe and I was therefore free to sell. The company did back down.
  4. Tilen

    Tilen

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    But can you use designer brands logos, banners, pictures etc. on your website or not
  5. Erik

    Erik

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    Hi Tilen,

    I believe you are not allowed to post brand logos on your website due to intellectual property rights. Most brand logos are copyrighted and you need to have a license to use such logos. This could then be used if you are an official distributor of a brand in which they give you permissions to use their intellectual property (brand, logo, etc). Best to just play it on the safe side to ensure that you won't get a mail soon about property infringement. :)

    Best,
    Erik
  6. Tilen

    Tilen

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    Ok so for example. I have a store and I am selling underwear, I also have a supplier which happened to be a thread starter and based on this thread I can sell those in my country (since its EU) however I cant name the category on my site for example "Hugo Boss" or "Calvin Klein"? Neither I cant to put their logo for example in my sidebar. Getting in touch with those designer brands is tough as hell.
  7. kwidzin

    kwidzin

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    I know this is an old thread, but an excellent bit of advice. Thanks
  8. Matus Antalec

    Matus Antalec

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    So many great infomations ! This topic could helps lot of newbie in business.
    Authentic clothing is not only in outlets and retail stores !
  9. clothesfashion1

    clothesfashion1

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    Sorry to dig this topic back up here thought it would save clutter making another. What are the legalities of using photos taken by yourself on a model wearing designer brands? Also if I were to have a picture of stock on a flyer? Even having a TV ad with models wearing stone island?
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