1- What is IP?
2- What is a trademark and what can be covered by a trademark?
3- How do design protections such as trademarks and IP function in the fashion industry? How can a products origins and cultural heritage be leveraged as an intellectual asset?
4- Review the arguments put forward by the Australian manufacturers of sheepskin Ugg boots and Deckers Outdoor Corp (parent company of UGG Australia). Using this information, how does each party define its IP?
5- What is the impact of internet and online shopping on issues of IP protection? How has this affected the case of Ugg and UGG?
6- If you were the judge ruling in this case, would you rule in favor of Deckers Outdoor Corporation or Australian Leather? Which side has the stronger case and why?
Introduction Ugg boots are a soft double-faced sheepskin boot, with fleece on the inside and tanned skin on the oulside. Today they usually have a rubber sole. There are various opinions on the origins of Ugg boots originated in Australia; however, since the late 1990s the popularity of this type of sheepokin this particular fomm of tootwear. Photographic evidenoe from the First World War (1914-18) shows boot has increased as many international celebrities have adopted them as their footwear of choice pilots wearing fleece-lined boots, then known as "fuug boots." "These were thigh high and specifically when off-duly, Online shoppine has exlended the foolwear's circulition and allows the promotion and produced for avialors to keep their entire legy warm. However, another view records Ausiralian sheep distribution of ugg-style boots in the global marketplace. shearers wearing the original "arrtisanal" sheepskin bools in the style of Uggs as early as the 1920 s. Shearers developed this type of footwear, as it was resistant to wool yolk or lanolin on the fleece that In this retail conlext. there are customers seeking UGGi Australia branded footwear, as worn by would rot ordinary shearers' hoots. In Australia, these soft sheepskin lwots also have documented models, actors, and celebrities. There are also consumers searching for ugg-style sheepskin boots that connections to surf culture. Competitive surfers adopted ugg-style sheepskin boots to put on for are made in Australia due to the product's authentic Australian roots and quality of its sheepskin. warnth after surfing during the 1960 s. It is through the appeal of the laid-back "Aussie" surfing Consoguently, in the glohal fashion marketplace buying genuine Australian Ugg/tiGit. hoots is more problematic than one might expect. limited range of Ugg Australia branded boots to California in 1978. As some sectors of the fushioa indusiry move to develop more robust legal protections for intellectual property (IP), this case study provides an opportuaity to exiamine the conplexity of defining IP in In Australia, the ygo-style boot has been a consistent feature of the general footwear market since the a wo confficting retail landscape no longer restricted by geographical locations. The study highilights 1970s. In 1981 the Macquarie Dictionary (of Australian language) included reference to "Ugg boots" as a eeneric term for sheepskin boots. In addilion to their populiarity as a practical acceessory for sheepskin boot, 11 calls ittentlion to the contextual factors surrounding IP and challenges some comunon surfers, these boots developed associations with Australian "bogans" (a derogatory slang term for assumptions regarding legal protections. working-class consumers). This counection probably stems from the ubiquity and unrefined structure of the boots. They are adoprod moro as casnal slippers (much like moccasins) rather than as a style Io begint, this case study provides background information on the Ugg boot. It then discusses recent statement in Ausiralia and New Lealiand. developments leading up to the legal dispute between two companies (Australian Leather based in Sydney, Australia versus the owner of UGGE Australia, Deckere Ouldoor Corporation based in the However, in the international context ugg-style boots have developed ather associations. Ugg-style United Statesi. The srudy describes the concept of IP, its scope, and role in protecting ideas as boots gained exposure outside the Californian surting communities in the United Stares when the commercial of business assets, before outlining the particular. arguments being nade by both parties sports stars of US Olympic team wore them to the winter Olympics in Lillehanmer in 1994 . Subsequently, hggs were spotted on off-duty actors. models, and celebrities, wearing the footwear as cullural herilage of producls operate as intellectual assels. part of a carctrec and laid-back style statement exemplificd by individuals such as Paris Hilton. They received the ultimate media endorsement in the United States when Opral Winfrey introduced UGG 8 Australia branded boots to her viewers and lought her entirc staff a pair in 2000 . Outside Australia, uggos-style bouts catme to the fashion consuming public's attention via endorsennents from sporling heroes and high-profile celebrities. UggUGGEB footwear has developed along two parallel paths that have shaped its perceptions differently in different parts of the world. The evolution of Ug/UGGQ In developing his export veulure selling Ausitralian sheepskin bools to Californian surfers, Brian Smilh established a business called Ugg Inporls and registered "Ugg Holdings Inc" in 1978 in the United States. Following this, in 1985, he trademarked a ram's head logo with the words "Original UGG Boot UGG Australia" this trademark protection covered operations in the Lnited Statcs. Smith worked bard to develop the profile of the brand in the Lnited States and heavily promoted the Australian beritage (and production) of his footwear product as part of the branding. The Australian connection resouated well with his larget market in the Uniled Slates. In 1995, Smirh sold UGG Holdings to American firm Deckers Outdoor Corporation. In an attempt to consolidate the Ugg brand identity. Dockers also bouglt the UGH and UGH Boots trademarks from Austratian Shane Steadman and registered trademarks for "UGG" and "UGG Australia" in the United States. Deckers also successsully registered and trademarked the term UGG in a.number of countries, including China. Japan, and member states of the Furopean Union. This effectively restricted manufacturers and retailers from offering products described as Ugg boots in any of these councties. umless they are UGGi Australia branded boots. Establishing trademarks for "UGG" and "UGG Australia" within some countrics' borders has been possible; hovever, trademarking these terms in Australia has been a different story. The term "Ugg" contimues to feature as a generic descriptor for this style of footwcar in Australia as well as in the branding for companies that manufacture and sell such products. Deckere Ouldoor Corporation bas initiated a number of lawssiits against Australian companies for breach of trademark in Australia, which bave been successfully challenged. The courls have ruled that Doskers Corporation retain the rights to their trademarked UGG logo in Australia, but this trademark is only tor the logo as it appears in its entirety. Their logo is protected, but they bave no rights over who can use the terms "Ugg" or "Ugg boots" in Austrilia. Intellectual property sun kissed, laid-back beach cullure that is played out in their advertising material. IP is something that results from original and creative thought. The purpose of IP is to give companies The Australian origins of Ugg boots feature differently for the other side in this argument. Nick the ability to protect their investments, designs, and creativity. IP forms an intangible nonmaterial Xenophon-a former populist Australian senator supporting Australia's sheepskin boot-makersasset for a company or business; it is something that allows the business to gain recognition and or financial benefit. However, the concept of IP is not a universally defined legal framework, certain has statod "Tgg beots are a quintessentially Australian product the product and the name were aspects operate differently in different countries. invented here," comparing them to Champagne, which is produced only in a particular region of France (Cormack 2017). His comments refer to the idea that geographical indications are also an important Such inventions can be protected by estallishing trademarks, copyrighlts, or patents. Trademarks region where its quality or reputation is linked to its place of origin; something that can function as protect and identify a company's image; a registered trademark can be a word, phrase, symbol, or both a commercial and a cultural asset for businesses. This is clearly something that Australian Leather design. Copyright protection covers material such as textbooks, literature, art, music, and film and patents protect the technical and functional elements of products or processes. In the UGg/UGG casc, the focus is on trademarks. Ln. ordect.to register a trademark, it nust be: - Dislinctive for the products and services to which it is applied - Not similar or identical to any earlier marks for the same or similar products and services - Nol deceplive or contrary to law or moralily Business Problem Two views of intellectual assets The lawsuit between Deckers Outdoor Corporation and Australian Leather is not about sales of uggstyle boots in Australia, but rather the sales and promotion of this footwear online to a worldwide audience. In an cra before internet slopping, the issucs at stake in this case study could typically be settled within a country's geographical borders. However, now that consunders have access to a global marketplace, regional protections such as trademarks are barder to determine in a world of selling without borders. Deckers Outdoor Corporation has taken legal action to prevent the Australian manufacturer promoting and selling its products as Ugg boots online and overseas (in particularthe United States). They argue that they have invested in and developed a successful footwear brand-UGG Australia and that their brand is a registered tradcmark in tho tnited States which enables its protection as P. In terms of P, brand names and logos are recognized as significant business assets and should be protected from use or misrepresentation by others. Deckers are seeking damages from Australian Leather and in addition, want all the company's Ugg bools to be destroyed. The counter argument put forward by Australian Leather focuses on the status of the term Ugg. They contend that Ugg cannot be protected as an element of IP hecause it is a common term used to describe this particular type of .oolweat Australian Leather argue that the term should not have been trademarkod in first place, as it has boen in general use since the 1960s. They have provided adverts and articles from surfing magazines from the era to support this claim and will seek to have the trademark overturned in the Lnited States. Advertisetueat for Ugg Boots Grom the Febctary 1970 ussue of Sirfing Worid magame (Pertassioa granted Inom Swhing Aarla) Alongside specific issues of trademark, both parties also suggest that the other is misleading the public about the product they are offering. Deckers Outdoor Corporation argues that when consumers are looking to purchase yege-slyle bools they want to buy inlo the branded product closen by celebrities and models -UGGi\& Australia, and that where the boots are made is not a significant factor in consumers motivation to purchase. However, the Australian origins of the product continue to be used by Deckers as a compelling and memorable brand narrative for their product. They appropriate certain cultural associations to counect posilive "Aussie" characleristics with the product ind the brand, such as the
