Why are consumers so interested in paying premiums for status goods, or in buying counterfeit replicas? We buy expensive goods in order to display our status. The best handbag today is the direct successor of the hunter with the best kill. Status signals only matter to people who know; they are far more effective in urban settings where people know less about each other than in rural settings, and they are more prevalent among people who are at the age at which they are capable of passing on their genes. The purchaser needs a reference group which can relate to the fashion purchase, and may send out counter-signals by deliberately shunning expensive and fashionable products as a means of showing his or her status and security.
Counterfeit goods send out ambiguous messages; they can both damage demand and increase it, and they do address the status needs of lower-income consumers. Within each reference group, there is a zero-sum game in terms of status, since each person's increase in status corresponds to someone else's diminution of status. Three types of consumer are identified by the economists: the snobs, the aspirants and the bandwagon. The snobs get to a fashion product first, followed by the wannabes. By the time everyone is getting on to the bandwagon, the snobs are already jumping off it.
A Wendy Brandes Swear-Ring: the idea is simple, but protection is hard and costly |
Leading up to lunch, Aaron Wood (Briffa) reviewed the confusing condition of design protection for fashion in the UK, via national and Community design law. He dealt with issues such as qualification of the protected party (do you have to be a UK or EU national in order to enjoy design right protection?), exclusions from protection (does it matter if your design is for a surface pattern rather than something more substantial?) and priority (can you still register a design if you have already sold goods which incorporate it?)
Tatty Devine: made good use of social media in getting the right result ... |
When deciding what to do about an infringer, decide your strategy: are you looking to frighten off small fry, to obtain publicity or to seek full relief? Also, consider how an alleged infringer might respond to your moves. Defendants whose one product is an infringement of yours are more likely to stand and fight.