Are you familiar with the private label business model?

Private Label is a legal relationship between a brand and a manufacturer, in which the latter is hired to exclusively develop products for sale, following customized design and formulation specifications. This model guarantees the brand the preservation of its identity and the desired quality in its collections.

Recently, a controversy involving authorship and creation gained prominence on social media. A content creator shared a video recorded in a café in Thailand, where she was served a cup identical to the one she had purchased from the renowned Brazilian brand Tânia Bulhões. When she finished her drink, she turned the cup over in search of the brand's logo, but instead found only the indication of the country of manufacture.

The video quickly went viral, generating debates about the originality of the brand's creations, which has stood out in the Brazilian market for over 35 years with exclusive collections of tableware, recognized for their sophisticated details and unique visual narratives.

In view of the repercussions, Tânia Bulhões' press office issued a statement clarifying that there had been a contractual failure in the production chain. Foreign manufacturers, hired under the Private Label regime, had allegedly breached contractual clauses when selling the brand's exclusive designs on the black market, compromising the exclusivity of their creations.

Hiring under the Private Label regime can offer several advantages, including the possibility of having a ready, structured and experienced factory, without the need to directly manage aspects such as machinery, labor and labor obligations, acquisition of raw materials and maintenance of the industrial infrastructure.

However, there are risks involved in entrusting your brand's identity to a third-party supplier, since by entrusting production to an external manufacturer, the brand exposes itself to the possibility of misalignment with its values ​​and quality standards. Some inconsistencies may only emerge over time, making management even more challenging.

Furthermore, product logistics are already unpredictable by nature and can become even more complex when performed by third parties, increasing risks and requiring strict control to mitigate potential problems.

This type of failure can significantly compromise a brand's reputation, causing impacts that, in some cases, may be irreversible. The risk is even greater for growing brands that are in the process of consolidating themselves and seeking recognition in the market.

Therefore, for brands that operate or wish to operate under the Private Label policy, it is essential to adopt effective contractual protection strategies, ensuring the security and integrity of the company's identity. To this end, it is essential to select reliable manufacturers with a positive track record in the market, ensuring that production is in experienced hands and aligned with the brand's standards.

In addition, whenever possible, it is recommended to prioritize national manufacturers, so that the contractual relationship is subject to Brazilian Intellectual Property laws, providing greater control and protection against possible violations. Above all, the most important strategy is to have specialized and experienced legal counsel in structuring solid contracts, ensuring legal certainty and carrying out continuous supervision of production to avoid failures and breaches of contract.

By implementing these strategies, the brand significantly reduces the risks of outsourcing and preserves its exclusivity and credibility in the market. If you want to ensure the protection of your brand in contracts with third-party manufacturers, preserving the quality and exclusivity of your products, it is essential to have the guidance of a lawyer specialized in Fashion Law with a focus on Intellectual Property.