Daily Links

1. Derivative works are generative AI’s poison pill. While “derivative works” have specific legal treatment under copyright law, there are few precedents for laws or regulations addressing data derivatives, which are, thanks to open source LLMs, about to get a lot more prevalent. – Read More on TechCrunch

2. Expressing Passion Can Make Luxury Consumers Seem More Authentic. During economic downturns, overtly parading the expensive nature of luxury items in marketing campaigns can be viewed as tone deaf and attract backlash. Instead, luxury labels could direct their marketing efforts to engaging with their existing customers by encouraging them to express their passion for the brand and its products. – Read More on INSEAD

3. RETRO READ: How Do You Sell Luxury Amid Economic Uncertainty? You Ditch the Logos. During the decade-long recession, the drop in luxury goods sales was not a sign that consumers were not eschewing luxury but were rejecting ostentatious displays and favoring “tried-and-true stalwarts,” instead. – Read More on TFL

4. Barneys New York Was the Coolest Department Store. What Is It Now? A collaboration with fellow Authentic Brands Group-company Forever 21 marks the next chapter of the brand’s post-bankruptcy story. – Read More on the WSJ

5. How can the fashion industry scale circular solutions? “We’ve seen Chloe take steps in resale and actually making the decision to incentivize customers to deliberately re-engage with that same model rather than say reward them with money off your traditional sales for using it that’s a bit of a different decision to make.” – See More from the Ellen MacArthur Foundation

6. EU attacked on textile waste prevention “failure.” Fast fashion’s exceptional growth “has been facilitated by the increasing use of cheap, synthetic fibers from fossil resources and the relocation of production to jurisdictions with poor labor and environmental standards,” the report said. It called for active government intervention at different levels to remedy this. – Read More on MRW

1. Europe Luxury Stocks Slide. Richemont Chairman Johann Rupert said inflation is starting to dent demand across the region. And LVMH, which was recently dethroned by drugmaker Novo Nordisk A/S as Europe’s largest company, fell 3.6% to its lowest since early Jan. – Read More on Bloomberg

2. India’s Digital Fashion Disruptors. The fashion and lifestyle space is India’s second largest consumer category, valued at $110B with approximately 10% online at $11B. The online fashion market overall is expected to grow to approximately $35B by financial year 2028 at a 25% CAGR. – Read More on Bain

3. Inditex’s Zara to launch its second-hand platform in France. The service, which will be available through Zara’s stores, its website and a mobile app, already exists for its British customers since October, and will be launched in Germany also this year. – Read More on Reuters

4. China’s Appetite for Luxury Is Back. Despite a sluggish increase in China’s overall retail sales in the first half of the year, Chinese consumers have been a major driving force behind growth in the global luxury goods market. – Read More on Caixin Global

5. AI and the New Digital Cold War. When it comes to AI — arguably the most decisive technology in this global contestation — we are heading toward two hermetically sealed ecosystems: one that supports open systems but is also associated with democracy, privacy, and individual rights, versus one that supports state control, information-flow restriction, and politically imposed limits on openness. – Read More on HBR

1. Luxury goods a handy alternative to getting rich. For the more limited and special watches, they simply will not allow you to purchase the watch as you don’t have a previous purchase relationship with the brand. In the world of luxury goods that’s an incredibly important distinction. – Read More on SMH

2. Affordable Luxury Sales Gets Caught in Middle-Tier Crunch. Leather goods label Tapestry saw its market share drop 2% between 2017 and 2022, with Tory Burch and Ralph Lauren dropping as well. So-called “aspirational goods,” lower-priced merchandise put out by luxury labels, are also seeing slower sales. – Read More on PYMNTS

3. What OpenAI Really Wants. Tom Rubin, an IP lawyer who officially joined OpenAI in March, is optimistic that the company will eventually find a balance that satisfies both its own needs and that of creators. One hint of OpenAI’s path: partnerships with news and photo agencies to provide content for its models without questions of who owns what. – Read More on Wired

4. What lawyers and consultants are saying about the UAE’s new e-commerce regulation. The UAE’s e-commerce law has been primed for a revamp for some time now, as the complexity of technology and the usage of e-commerce platforms has grown tremendously over the past decade. – Read More on the National News

5. Survey: Experts favor new U.S. agency to govern AI. AI experts at leading universities favor creating a federal “Department of AI” or a global regulator to govern artificial intelligence over leaving that to Congress, the White House or the private sector. – Read More on Axios

6. Shelved L’Occitane buyout is no win for Hong Kong. Reinold Geiger has given up on his tentative plan to buy out the minority of shares he doesn’t already own of L’Occitane, a move that would have delisted the European skincare group from Hong Kong in the Asian hub’s largest take-private. – Read More on Reuters

1. Fast fashion firms prepare for EU crackdown on waste mountain. Between 6 and 7 billion euros of investment will be needed by 2030 to create the scale of textile waste processing and recycling that the EU is aiming for, consultancy McKinsey estimated in a report last year. – Read More on Reuters

2. What if silent luxury was not a trend, but a symptom of a shift in the fashion industry? Taking into account the different types of capital established by the sociologist Pierre Bourdieu, dressing in expensive and yet boring clothes, in addition to granting cultural capital among the like-minded, also incorporates other capitals: economic (purchasing power) and social (connections). – Read More on El Pais

3. RELATED READ: What Does Quiet Luxury Mean from a Trademark Perspective? The rise of “stealth wealth” is a call for companies to lean more heavily on/develop alternative or additional trademarks. – Read More on TFL

4. Google hit with copyright lawsuit by Danish online job-search rival. This is the first lawsuit in the Danish courts under new EU copyright rules regarding platforms’ liability for content uploaded to their services that came into force in 2021. – Read More on Reuters

5. From China to Brazil, here’s how AI is regulated around the world. Some countries, including Israel and Japan, have responded to its lightning-fast growth by clarifying existing data, privacy & copyright protections — in both cases clearing the way for copyrighted content to be used to train AI. Others have taken a wait-and-see approach. – Read More on the Washington Post

6. Foreign luxury brands flock to India ahead of festive season, as big labels look to tap into growing affluence of Indians. There is an influx of new brands like French luxury retailer Galeries Lafayette, which is entering the Indian market through a partnership with the Aditya Birla Group, while Spanish luxury fashion house Balenciaga SA is planning to open stores in collaboration with Reliance Brands. – Read More on the Times of India

1. Luxury Stocks Are Going Out of Fashion. It’s the China Syndrome. Luxury stocks are at risk from China’s slowdown after riding high for months on optimism that the rich would return in force to shopping in the world’s second-largest economy and to traveling abroad to browse in the finest stores. – Read More on Barron’s

2. UK publishers urge Rishi Sunak to safeguard intellectual property from AI. The Publishers Association (PA) urged the prime minister to ensure that “UK intellectual property law … be respected when any content is ingested by AI systems and a license obtained in advance”. – Read More on the FT

3. A.I.’s un-learning problem: Researchers say it’s virtually impossible to make an A.I. model ‘forget’ the things it learns from private user data. It’s nearly impossible to remove a user’s data from a trained A.I. model without resetting the model and forfeiting the extensive money and effort put into training it. – Read More on Yahoo

4. RELATED READ: Using Generative AI in Europe? How to Mitigate Legal Risks. Data privacy is a critical issue when training, developing, and using AI tools. Generative AI models carry high risks because of the vast amount of data used to train them. – Read More on TFL

5. Companies Will Use Generative AI. But Will They Tell You About It? Companies have been looking to generative AI for a range of customer-facing applications, including generating ad slogans, crafting news releases, producing billboard images, and helping to brainstorm new names for products and services, as well as things like planning photo shoots or summarizing customer product reviews. – Read More on the WSJ

6. Two sides of the same coin: analyzing the recent Ripple and Terraform decisions. In July 2023, two federal district court judges in the Southern District of New York issued rulings that touched on a crucial question for the digital asset space — whether secondary market digital asset sales through trading platforms constitute securities transactions subject to the federal securities laws. – Read More on Reuters