LEGAL CONSIDERATION FOR ESTABLISHING A FASHION BRAND

Introduction

Before a fashion brand can be officially established and a smooth running of the business is set sail, there are some legal requirements which must be put in place. Legal requirements vary from country to country and each country has its own licenses / permits which is going to be

needed. This article focuses on the various legal factors that are to be considered when

establishing a fashion brand or business.

Business Structure

The first and foremost legal factor to be considered when establishing any brand or business is to determine the kind of business structure such brand is to have. Same applies when a fashion brand is to be established. There are various kinds of business structures vis- Sole Proprietorship; Partnership; Limited Liability Companies (LLC’s) and corporation. Figuring out what kind of business structure the brand is going to take plays various significant roles in determining – how much tax to pay; the amount of liability the business may face; the longevity of the business in cases of unforeseen circumstances.

Registration of Trademark/Design

A fashion brand is a creative work of art, as such, any creation is an intellectual property that must be protected. One of the legal steps to take in establishing a fashion brand is to register such IP. Any designs, logo, symbols or any other form of Trademark must be adequately registered with the appropriate legal authority/organization in order to ensure that such design/trademark is protected from imitators. Registering one’s design also helps to establish a certain kind of familiarity and loyalty to the brand.

Non-Disclosure Agreements

One of the various legal considerations to make in order to establish a fashion brand is drafting of Non-Disclosure Agreements (NDA’s). An NDA is a legal contract that requires a manufacturer of a design or product not to disclose any sensitive or vital information without permission. Also in cases where the fashion business may want to pitch to investors, it is necessary to have a non-disclosure agreement in order to ensure that any confidential information about such business model is not disclosed without necessary consent.

Legal Contracts

In order to establish a fashion brand, there would be need to draft and also sign various legal contracts that would aid in the smooth usage of such brand. In the fashion industry, legal contracts that would be needed varies from employment agreements to manufacturing agreements. There would also be the need for advertising and promotional contracts as well as

private labelling contracts.

Licenses/Permits

Another major legal factor to consider when establishing a fashion brand is applying and

obtaining the license/permit needed to establish as well as run the business. As mentioned above, licenses vary from country to country. Every country or state has different requirements that must be complied for the business to operate legally.

Conclusion

It is very important to consider these various legal factors when trying to establish a fashion brand. For a successful establishment of a fashion brand, it is advisable to ensure that every legal aspect is checked so as to avoid any form of legal repercussion which may arise in future.

CHIZITERE OLUHARA

Intern-2022

Legal Department

Cardinal Counsel