3 clauses that can save your brand from huge losses

The fashion industry operates in a dynamic, competitive, and highly exposed environment—making contracts an essential tool not only for organizing partnerships but also for preventing risks that could compromise a brand's reputation and financial structure. Below, we present three strategic clauses that, when well-drafted, act as effective barriers against significant losses.

1. Trademark use and protection clause

In relationships with influencers, suppliers, stylists, and business partners, it is essential to specify how the brand may be used, in what contexts, formats, deadlines, and limits. This clause prevents:

• misappropriation of visual identity elements;

• use of the brand in contexts that do not reflect its values;

• unauthorized campaigns and promotions.

It can also include mechanisms for protecting trade dress, reinforcing the brand's positioning and preventing confusion with competitors.

2. Liability and guarantees clause

In contracts for the production, supply, and development of garments, it is essential to define who is responsible for defects, delays, and additional costs.

A robust drafting of this clause protects the brand from:

• losses due to failures in the production chain;

• undue compensation claims;

• Unexpected expenses related to rework or operational losses.

Clear allocation of responsibilities is one of the main forms of legal protection in shared-risk environments.

3. Confidentiality clause and protection of strategic information

Fashion involves creativity, innovation, and differentiation—extremely valuable assets.

A confidentiality clause ensures that sensitive information, creative processes, collection strategies, exclusive suppliers, and commercial data remain protected. Its violation can cause irreversible damage, and the contract should provide for appropriate legal consequences.

Why does this matter?

Brands that operate without well-structured contracts run unnecessary risks. Those that treat legal matters as part of strategic management can scale safely, preserve their image, and avoid losses that could have been prevented with simple contractual provisions.

Carolina Lago Advocacia, a law firm specializing exclusively in Fashion Law, works to create tailor-made contracts for fashion brands, companies, and professionals, focusing on prevention, legal security, and the protection of creative assets.

To learn more about our services or understand how our firm can help your brand, visit the link https://linktr.ee/carolinalagoadvocacia.