Luxury shines brightly
Luxury companies are optimistic about the next 12 months, with 15 per cent very positive and 65 per cent saying they were positive about the sector, according to new research. However, the survey revealed that companies were worried about a number of legal issues with one in three increasing their legal budgets.
Only 58 per cent of luxury companies regularly audit their IP assets with one in three failing to do so regularly or ever, the survey found. Trademarks are the area of IP which companies seek most advice on and counterfeiting is one of the biggest challenges for the luxury sector, according to the findings.
Areas of concern
Respondents to the research, which was carried out for the Luxury Law Summit 2013 noted that 43 per cent had seen an increase in counterfeiting issues, 29 per cent reputational issues whilst 32 per cent voiced concern about the supply chain. Increasing human rights problems was also noted by 17 per cent. Litigation and disputes were also a major cause for concern.
China still remained the biggest market for investing in followed by India, Brazil and South Africa. However Mexico, Turkey, Indonesia and Nigeria were growing areas, the survey found. Other issues of concern to respondents were dealing with China on IP, brand issues, licensing, dealing with social media and reputational issues , the arrival of 3D printing, political risks emanating from the Arab Spring, trade secrets and tax issues.
The research was carried out by The Global Legal Post in advance of the Luxury Law Summit, 2013.