The luxury industry is based on creativity and aesthetic innovation. Each season, the fashion houses of haute couture, jewelry, leather goods and watchmaking unveil iconic pieces, protected by intellectual property rights.
A major reform in this area has just been adopted within the European Union with Regulation (EU) 2024/2822 and Directive (EU) 2024/2823, profoundly modifying the protection of designs and models and adapting the system to the digital age. What are the implications for the luxury industry and how should companies adapt?
What is a design and how is it used in the luxury sector?
A design is an intellectual property right, in the same way as a trademark or a patent. This right specifically protects the appearance of a product, i.e. its shapes, colors, textures or ornaments, provided that it is new and has its own character. It constitutes a strategic asset for the luxury industry, making it possible to secure emblematic creations against counterfeiting and copying. For example, a handbag with a unique silhouette, a watch with a distinctive dial or a haute couture dress can be protected by a design registered with dedicated offices in order to be protected in the chosen territory or territories.
A registered design benefits from an initial protection of 5 years, renewable in 5-year increments up to a maximum of 25 years. It allows the holder to prohibit any reproduction or imitation, even if the person making the copy was unaware of its existence. There is also an alternative protection by unregistered design, which arises automatically as soon as it is publicly disclosed, but its protection is limited to 3 years and covers only deliberate copies. The latter is therefore more suitable for rapidly changing industries (fashion, design), while registration provides stronger and more lasting protection.
In a market where iconic designs are often imitated, this protection gives luxury brands a monopoly on their use, enabling them to take legal action, and more specifically infringement action, against unauthorized copies. The reform changes the rules of the game by strengthening certain aspects of protection while imposing new constraints.
The new rules of the game for the luxury industry
This reform modernizes and simplifies the rules governing the protection of creations. For luxury houses, this means more flexibility in protecting their designs, but also new financial and strategic constraints.
First of all, the registration process has been simplified. Companies will be able to file several designs in a single application and delay publication of a design for up to 30 months. Why is this important? Because in the luxury sector, unveiling a design too early can expose a company to copying even before the product is officially released. This delay allows it to better protect its creations and keep the surprise intact until launch.
On the one hand, the filing fee remains stable at €350, and certain costs, such as those related to transfers of ownership, have been eliminated, making the process easier for SMEs. In addition, it is becoming more advantageous to register several designs at the same time, at least up to 10 creations, as the fees are reduced for this bracket. However, beyond that, the costs increase significantly, making protection more expensive for those who file large collections.
The other major change concerns the renewal of rights, which becomes much more expensive over time. For example, while a first renewal used to cost €90, it now costs €150, and this amount rises to €700 for a fourth extension. This means that companies that protect their designs over a long period of time, particularly in sectors such as fine jewelry or watchmaking, will have to anticipate these increases and adjust their strategy accordingly.
However, these price increases do not affect renewals of international designs, which are fixed at €62 per renewal, offering an attractive alternative for companies wishing to manage their titles globally.
Secondly, the reform adapts to technological developments. Today, a design is no longer limited to a physical object: it can also be digital or animated. From now on, a fashion house will be able to protect a virtual dress sold in the metaverse, a graphic animation used on a website or even a digital file allowing an accessory to be printed in 3D. This extension of the legal framework is crucial at a time when the boundaries between the real and the virtual are becoming increasingly blurred.
However, while some rules are becoming more flexible, others are complicating the task of luxury companies. The costs of renewing rights are rising sharply, especially for those that protect their designs in the long term. Take the example of an iconic brand that wants to preserve the exclusivity of its flagship bag for 25 years: it will now have to pay much more to extend its rights. This additional cost could force some Houses to make strategic choices and keep only their most profitable models.
Another key point: the protection of unregistered designs and models is evolving. Until now, a design had to be unveiled for the first time in the European Union to be protected. With the reform, this constraint disappears. A luxury company presenting a collection in New York will still be able to assert its rights in the EU if its design is copied. This offers better protection to companies operating on the international stage and who want to prevent their creations from being reproduced without authorization.
Finally, a change could cause problems for certain luxury sectors: the reform facilitates the reproduction of certain spare parts necessary for the repair of complex objects. While this mainly concerns the automotive industry, the question arises for other industries. For example, will it be possible to freely produce certain accessories or leather goods by considering them as “spare parts”? This uncertainty could generate tensions between designers and manufacturers.
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