MINTangible’s latest collaboration with CreatedBy_ and WonderRaw (where MINTangible is powering the IP terms, verifications management and upcycle program requirements for CreatedBy’s 360 Circular Connected apparel offering), led me to a better understanding of the opportunities and the challenges of Upcycling.
The upcycling movement is transforming how we think about waste, turning old materials into new and sometimes even more valuable products. This is something everyone should get behind from the largest fashion brands down to scrappy entrepreneurs enabling upcycling with technology, programs, and movements.
IP Concerns and Disputes
However, upcycling activity also has led to intellectual property challenges. Some intitiatives have upset brands and created intellectual property (IP) disputes (Chanel, Louis Vuitton, and Rolex have taken legal action against upcyclers for unauthorized use of their trademarks)- evidencing clashes and the tension between brand protection and sustainable practices.
I believe there is a better solution than fighting these challenges out in legal processes and the courts. No one today knows the answer of whether and to what extent reusing branding elements constitutes infringement.
In practice- there will never be a clear answer to apply – always a sliding scale. No one wins.
Licensing is the Answer
When it comes to IP, instead of spending all that energy fighting in courts, the better answer in many cases is for brands and IP owners to craft an upcycling program where they provide the requirements and a licensing model. This not only mitigates IP conflicts but also opens up new revenue avenues.
It allows brands to recruit and collaborate with others under clear contractual terms that ensure the original quality and value of the brand are retained – opening up new revenue streams but also aligning brands with the growing cohort of eco-conscious consumers by showcasing their commitment to sustainable practices.
When it comes to strategies, a brand can choose among a variety of approaches from controlling the entire upcycle program to ensure brand and IP reputation control to allowing upcycling beyond their companies provided that their IP/design elements meet strict guidelines or are removed altogether.
Aside from IP strategies, brands can incentivize upcycling activity with rewards, discounts, and perks and even gamify the program for more engagement with consumers.
Blockchain Verified Licensing, Authenticity & Tracking
Add in blockchain capabilities and brands further enhance transparency, traceability, and IP protection.
An innovative implementation of blockchain in this arena is through platforms like MINTangible, which can be used to establish authenticity, protect IP, establish license terms, detail upcycle program requirements, and provide lines of communication directly from the garment (via an NFC chip).
Win Win Opportunities via Upcycling + IP + Blockchain
Brands and product companies can establish themselves as leaders in both innovation and sustainability. Not only would they continue to attract customers and collaborators, but they could also set a new standard in how luxury and quality are maintained in an eco-friendly way.
By leveraging blockchain technology and smart licensing, brands can redefine the landscape of upcycling while protecting their valuable IP.
European Union’s Upcoming Sustainability Tracking Requirements
While there are plenty of business reasons why a brand would want to extend its offerings to eco-conscious lines, the EU is moving forward with ecodesign legislation which mandates enhanced consumer product information and supports sustainability.
With the legislation mandating the use of digital “product passports” to provide essential information about products, a blockchain-based solution offers a transparent and immutable way to record and trace these sustainability attributes seamlessly – ensuring compliance and enhancing consumer trust.
Considering these new EU regulations, all fashion brands doing business in Europe should be proactive in complying with these upcoming legal standards to foster a genuinely sustainable circular economy.
If you want to explore upcycling strategies, I encourage you to reach out to CreatedBy or MINTangible. Together we offer a close to done-for-you – efficient, trusted, and complete offering specifically structured for various upcycling use cases – unlock monetization, protect IP, ensure the integrity of the program, and do great for the environment!
RESOURCES:
Great article from The Fashion Law re: IP pitfalls: Unpacking the Upcycle Craze
European Union Rules moving toward making mandatory product sustainability requirements
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