Controversy has escalated following a recent court ruling that deemed the act of crafting wallets by repurposing luxury bags. (Photo: a screenshot from Louis Vuitton’s official website)
SEOUL, Nov. 16 (Korea Bizwire) – Controversy has escalated following a recent court ruling that deemed the act of crafting wallets by repurposing luxury bags, a practice commonly known as ‘reform’ in Korean, as a violation of trademark rights.
In response to the court’s decision demanding compensation of 15 million won from the owner of a business that repurposed Louis Vuitton bags into wallets, professor Park Kyung-sin of Korea University School of Law expressed his discontent on social media on Monday, stating, “Should I owe a royalty to a pants manufacturer if I cut my worn pants to make shorts?”
Park explained, “All forms of intellectual property rights, including trademarks, adhere to the principle of exhaustion. If a creator receives a royalty at the initial point of product sale, the intellectual property right becomes exhausted. Consequently, they cannot demand additional royalties, regardless of subsequent use or resale.”
He emphasized, “This is why we aren’t obligated to pay royalties to the patent holders of components when selling smartphones as secondhand items. Louis Vuitton received payment for its bags, encompassing the trademark value at the initial sale, and thus cannot request extra royalties even if the purchasers modify the products.”
Gian84 also shared a video on social media depicting his ‘reform’ of a Gucci shoe. (Photo: a screenshot from Gian84′s Instagram account)
Noting that attaching the Louis Vuitton trademark to other products constitutes trademark infringement, Park emphasized the purpose of the Trademark Act. Making Louis Vuitton wallets by repurposing bags necessitates the purchase of Louis Vuitton products, resulting in no economic loss for the brand.
Furthermore, Park clarified that the owner of the ‘reform’ business did not sell any products; rather, the company simply fixed products upon customer requests. He argued that various regulations hindering individuals from exploring new avenues with their knowledge, skills, and passion contribute to the nation’s economic inequality, which is the worst among OECD countries.
In addition to Park’s critique, many ordinary people are expressing skepticism about the court ruling, especially as numerous celebrities have showcased the trend of repurposing their luxury items. For instance, the renowned webtoon artist Gian84 appeared on MBC’s popular reality show ‘I Live Alone,’ where he took on a repurposing challenge, stating, “I received a dust bag gift from Taeyang, a member of the K-pop band BigBang, and it’s too good to throw away.”
Gian84 also shared a video on social media depicting his ‘reform’ of a Gucci shoe. Similarly, the well-known actress Chae Jung-an posted a video on her YouTube channel featuring a repurposed bag using a luxury bag worth 10 million won.
Ashley Song (ashley@koreabizwire.com)
