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An Overview of Fashion and Beauty Law
Fashion & beauty law, also known as apparel law, is an emerging legal area that includes issues related to the life of a garment from conception to brand protection. Fashion law clients range from designers, fashion houses, distributors, manufacturers, modeling agencies, to retailers, suppliers and photographers.
Among the activities that require legal assistance, manufacturing, licensing, franchising, sales & purchase, distribution, financing, sourcing, business development, leasing, etc can be highlighted.
It should be noted that fashion and beauty law, requires knowledge and experience in various legal areas such as corporate law, merger and acquisitions, Corporate finance and secured transactions, bankruptcy, distribution, marketing, licensing and franchising agreements, intellectual property rights, brand protection, import, export and customs duties issues, joint ventures and other strategic alliances, labor and employment, leasing premises, showroom and retail facilities, litigation and dispute resolution.
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2. Responsibilities and Duties of a Fashion Lawyer
Fashion attorneys advise clients on legal issues facing the fashion, textile, apparel, luxury, footwear, jewelry, and cosmetics industries. These run the gamut from licensing, merchandising, distribution, and franchising agreements to intellectual property, employment, and labor relation issues. They include safety, sustainability, and consumer protection issues. Various aspects of corporate, real estate, tax, and business law also come into play.
Fashion lawyers perform a broad range of duties from drafting and negotiating contracts to addressing and litigating trademark, copyright, and other intellectual property issues. They’re in charge of forming and dissolving business entities and advising on branding development and protection. Fashion lawyers also consult on design protection, import-export, licensing, and other issues.
3. Regulatory Framework
There are many rules and regulations related to the production and distribution of fashion and beauty goods in Iran. However, foreign nationals who would like to import and sell their products in Iran, need to consider two main regulations.
The first regulation is “Instruction on issuing certificates of activity of representatives and branches of foreign companies supplying cloth in Iran” that declared in September 2016.
Based on this regulation, representative of foreign companies has to obtain a license from “Iran Guilds Center” which is valid for two years. Article 3 of this Regulation also states that: “The foreign company or its representative is obliged to manufacture at least 20% of the value of imported products and also export at least 50% of the value of domestic production during the first two years”.
Article 17 of this Regulation states that the import of garments is allowed only after obtaining the aforementioned license. It says: “Any import of clothing into the country for commercial use is allowed only by receiving a certificate of activity under the terms of this Instruction. Otherwise, it will be considered smuggling and will be punished in accordance with the laws”.
The second important regulation is “Instructions for importing raw materials and processed cosmetic goods” which came into force in 2006. According to this Regulation, the applicants have to obtain the “Health Certificate” and “Import License”.
Pursuant to Article 16 of the Law on Food, Beverage, Cosmetics and Hygiene, clearance of food, health, and cosmetics from Iran customs in any form and quality for commercial or advertising purposes, need to have a health certificate and consumable license from the country of origin.
Moreover, the import permit has to be obtained from the “Ministry of Health, Treatment and Medical Education” and the importer is obliged to submit all the required documents to the Ministry in order to obtain the said permit.
4. Contractual Framework
There are some contractual frameworks which normally used in relation to the fashion and beauty law especially regarding granting of licenses, production and distribution of fashion and beauty goods. Depending on the development model and strategy chosen by the owner of a beauty and fashion brand, the contractual framework varied between, franchise, license, joint venture, distribution, agency, etc. Each of the mentioned contracts contains specific provisions that should carefully be chosen as the case may be. In other sections, we have analized the main features of most of these contracts.
5. Why Fashion Law is Important?
The internet age has developed many of the legal issues that designers and fashion companies encounter, fueling the necessity for fashion-specific legal advice and protection. For example, design piracy and infringement litigation have grown in recent years, prompting new legislation that provides legal protection for fashion designs. These issues are of particular importance to those in the fashion industry. On the other hand, the laws and regulations in this field are changing constantly which makes it complex and attractive at the same time.
Our team is composed of highly skilled and versatile lawyers who combine practical experience and academic knowledge of their field. Most of our practitioners have worked in different professional environments, often outside their home jurisdiction.