“The Piracy Paradox: Innovation and Intellectual Property in Fashion Design” is sparking an interesting conversation about copycattiness in creative professions.
The paper argues that copying in the fashion industry does not deter innovation (and may actually promote it). James Surowiecki summarized the essay in The New Yorker and argued that fashion piracy results in “more innovation, more competition, and probably more sales than there otherwise would be.”
Designers’ frustration at seeing their ideas mimicked is understandable. But this is a classic case where the cure may be worse than the disease. There’s little evidence that knockoffs are damaging the business. Fashion sales have remained more than healthy—estimates value the global luxury-fashion sector at a hundred and thirty billion dollars— and the high-end firms that so often see their designs copied have become stronger. More striking, a recent paper by the law professors Kal Raustiala and Christopher Sprigman suggests that weak intellectual-property rules, far from hurting the fashion industry, have instead been integral to its success. The professors call this effect “the piracy paradox.”
The paradox stems from the basic dilemma that underpins the economics of fashion: for the industry to keep growing, customers must like this year’s designs, but they must also become dissatisfied with them, so that they’ll buy next year’s. Many other consumer businesses face a similar problem, but fashion—unlike, say, the technology industry—can’t rely on improvements in power and performance to make old products obsolete. Raustiala and Sprigman argue persuasively that, in fashion, it’s copying that serves this function, bringing about what they call “induced obsolescence.” Copying enables designs and styles to move quickly from early adopters to the masses. And since no one cool wants to keep wearing something after everybody else is wearing it, the copying of designs helps fuel the incessant demand for something new.
Law school professor Susan Scafidi calls this “a tired, old argument” and says it’s based on an outdated, pre-internet portrait of the industry.
The designers who suffer from copying are the little guys – those whose designs are copied, while their trademarks are not. Consider the accessories designer who received an order for a belt from a large department store – only to have the store place its larger reorder with a cheaper manufacturer. Or how about the jeweler whose work was admired by a buyer at a trade show and hoped for a sale, only to open the large company’s catalog months later and see an exact copy of her design? Maybe the dress designer who saw her dress praised in an online forum, only to have the next post recommend buying an exact knockoff elsewhere – followed by thanks for the “tip”? Perhaps you’d be convinced by the handbag designer who actually received a wholesale order, only to have it canceled a few days later because the buyer found an exact copy of her original design elsewhere at a lower price? The stories are common ones, but these are not hypothetical examples. These are real people, some of whom prefer not to be named. They have invested time, money, and talent – R&D to any other industry – in realizing their visions, only to have their work stolen, often by huge companies. You would recognize many of the names of the corporate copyists; I doubt that most readers would ever have heard of the startup designers.
Handbags at dawn offers some more pushback to the Piracy Paradox.
Akeem A.
on 12 Nov 07I agree that this Paradox totally misses the mark with just about everything other than fashion. It might just be the market, there is a stark difference in price of high end fashions and ‘similar styles’. This will always be the case as many want to enjoy “designs of the stars” at a reasonable price.
This really doesn’t apply to software so well. Package A for 49.99 or Package B for 49.99, it comes off really bad. Just imagine two films with the exact same plot, same characters, and same ending. I would ask for a refund.
As customers become more discriminating, this will become better. Or should I say if customers ever become more discriminating.
sensei
on 12 Nov 07I think it’s important to draw a distinction between modelling designs on other designs (using as inspiration) and copying (directly duplicating every facet).
Ryan F.
on 12 Nov 07In the fashion industry, piracy isn’t damaging sales. When people buy knock-off Louis Vuitton purses (for example), they’re still advertising the brand by carrying around something that looks like a Louis Vuitton. Also, people who buy fake Louis Vuittons know that they’re carrying around a fake purse, and as such still aspire to buy a real one.
Anonymous Coward
on 12 Nov 07I don’t care if this affects or doesn’t affect sales for the original piece. What I care about is that someone who copies someone else is making money off the original’s back. The copier wasn’t creative enough to come up with their own design so they took someone else’s and are selling the co-opted design on the market for profit. That’s completely unfair to the original. Criminal in my book.
As far as “still advertising the brand by carrying around something that looks like a Louis Vuitton” goes, that’s bullshit. If that worked the person who bought the rip off would have bought an original. If the “free” brand advertising is so powerful people wouldn’t want a fake logo on a fake bag.
Matt Mason
on 12 Nov 07In fashion, piracy may not directly damage sales, but it can damage brands. Louis Vuitton’s brand is devalued by knock-offs – they would rather people were not walking around with $25 knock-offs, it makes the real product feel less exclusive and aspirational.
Akeem, I think it’s wrong to say the paper misses the mark with everything other than fashion, given that it was only aiming at fashion. The model is very unique, but it does highlight the value of being able to copy things in a certain way, something which I would argue does apply to software, as sensei points out.
Nick Husher
on 12 Nov 07A close friend’s business had an issue like this; they hand-make jewelry in very small batches, and were dismayed to find nearly-identical designs available from another maker after a big trade show. They threataned legal action against the other, larger jewelry maker, and were basically told that they were wasting their time. The larger maker rotates product in and out, and by the time the lawsuit was resolved, the original point of contention wouldn’t be available through that maker anymore.
There are other instances, however, where copying a design is beneficial. In software, classes of software should ideally resemble each other, because it makes them collectively easier to learn. If assumptions of knowledge carry over between products, users are happier and developers can spend more time refining their code than thinking about new interface concepts. There’s a reason why one of the most dangerous antipatterns in software engineering is called ‘Reinventing the Square Wheel’.
That’s not to say UI developers should steal others’ interfaces wholesale, but common interface vocabulary is a good thing.
Austin Govella
on 12 Nov 07“Piracy” is a network effect, totally inherent - and integral - to how humans operate as a networked, social organism.
It sucks that all around us everyone is disintermediating the disintermediaries, but too bad, so sad. If you have to resort to intellectual property law to protect your competitive advantage, then you have no competitive advantage.
Creative people have the right to make a living off their ideas, but they don’t deserve to be the only person who makes that living. Nor do they enjoy special rights. Non-creative people possess the exact same right to make a living doing something they enjoy.
Artist’s aren’t special. The only people who think artist’s are special are the artists themselves and the people who make money off of them. But you’ll note that once the money men find a way to make better money, the artists aren’t so special anymore.
I think this turned into a rant.
Benjy
on 12 Nov 07When people buy knock-off Louis Vuitton purses (for example), they’re still advertising the brand by carrying around something that looks like a Louis Vuitton.
That depends, of course, on whether those walking around with the knock-off LV are deemed desirable to be advertising the brand. If it’s some trailer park trash seen carrying the bag, then it dilutes the aura of the brand. The desire to own an LV bag is because of the exclusivity and symbol of status it imparts. If anybody can pick it up on a street corner in any big city for $10 then people begin to question whether any of the bags out there are real or not.
Anonymous Humorist
on 13 Nov 07Some of them celebrities who are likely getting the LV bag for free to connect its status with theirs look like trailer park trash—the trailer park trash paradox? Perhaps not all for free, eh.
stuart Willis
on 13 Nov 07Matt doth quoth:
Is it brand damage or is it market correction? If people feel the need to buy a cheaper knock-off then perhaps its because the original is over priced. Moral argument aside, intellectual property rights are artificial created monopolies designed to offer price protection in exchange for better innovation).
Jonathan
on 13 Nov 07If Law school professor Susan Scafidi thinks that there is a problem with large companies buying copies of original designs from cheaper producers, then that is nothing to do with piracy and everything to do with economics (and to a lesser extent law enforcement). The original point about innovation in the fashion industry still stands.
Nathan Bowers
on 15 Nov 07Even if you could prove that the absence of strong intellectual property law hurt the small fashion producer I’d still be against extending copyright to fashion designs.
Once you create a copyright or patent system an entrenched interest will inevitably rises up to exploit that system and the little guy will get screwed anyway.
This discussion is closed.