The clothing market has historically always been in vogue, coupled with high competitiveness and dynamism in launching collections. In recent times, the fashion market, along with the luxury market, has risen exponentially and has become a constant topic in the legal world, due to the various specific situations found in this market segment.
Due to the encouragement of young entrepreneurship and the influence of the big brands, we are seeing new brands and products created more frequently by independent professionals, increasing the participation and opportunities related to the fashion market.
Although we don't consider it an area of law per se, Fashion Law is concerned with studying the legal situations of the fashion market and industry. In other words, specific complications arising from the fashion production chain generally involve the areas of Tax Law, Intellectual Property, Labor Law and Contracts.
As well as structuring the business properly, it is important to take care of drafting and formalizing contracts for buying and selling products, importing raw materials, contracting services in Brazil and abroad, as well as complex international commercial partnership contracts. The main cases deal with contractual disputes with suppliers and related to the export of products, as well as those corresponding to copyright conflicts.
Another sensitive - but recurring - issue is slavery and child labor. This is because many of the companies operating in this sector enter into commercial partnerships to add value to the production chain. As a way of mitigating this risk, a good legal department specializing in commercial and international contracts is not enough, but investments in compliance and corporate governance are necessary.
In Brazil, in particular, attention to environmental legislation must be redoubled, precisely because of the National Solid Waste Policy, which assigns responsibilities to all participants in the production chain, right up to its final destination.
The trend is to meet legal requirements together with a brand positioning plan to adopt sustainable standards. Recycling products and reusing used parts remains an excellent opportunity for companies to restructure with a view to the future and social well-being.
The market offers great opportunities for growth, but it must be borne in mind that the Brazilian courts are unfamiliar with some of the issues raised by Fashion Law. The important thing is to reduce the risks and not let the lack of legal prevention jeopardize the brand's longed-for success.
