This chapter aims to provide entrepreneurs seeking to invest in the fashion sector in Brazil with a brief overview of Fashion Law, which has been gaining increasing prominence year after year.
This chapter will address the various forms of protection available for fashion products and will also introduce readers to some of the main agreements and clauses that permeate the fashion universe. It should be emphasized that this is a complex market, full of nuances, and that the purpose hereof is not to exhaust the subject, but rather to provide an overview of the aspects that we consider most relevant.
The fashion industry is of socioeconomic importance to several countries and is becoming increasingly significant on a global scale. In addition to generating significant revenues and encompassing various segments, such as textiles, footwear, accessories, luxury goods, jewelry, cosmetics, beauty, and others, the fashion industry creates millions of jobs worldwide.
The Brazilian Textile and Apparel Industry Association (ABIT) points out that the textile sector is the second-largest employer within Brazil’s manufacturing industry, ranking behind only the food industry. Each year, this market has contributed to the growth of Brazil’s Gross Domestic Product (GDP).
Another important factor that has fostered the growth and vertical integration of the fashion industry was the liberalization of international trade in textiles and apparel, which contributed to the development of new business models, such as e-commerce and its various forms, which have become increasingly prevalent throughout the consumer journey, particularly since 2020, as a result of the pandemic and the social isolation measures implemented in response to COVID-19.
An interesting fact is that Brazil is one of the few countries with a complete and complex textile supply chain. In other words, in addition to producing natural fibers (such as cotton, linen, wool, and silk) and man-made fibers (such as viscose, modal, elastane, and polyester), we also manufacture apparel, encompassing the processes of spinning, weaving, knitting, and finishing, all the way through to the final consumer.
It is worth noting that, in 2019, Brazil accounted for 2.4% of global textile production and 2.6% of global apparel production. These figures make Brazil the only country in South America to stand out in the textile sector1. Furthermore, according to the sector’s overall figures, in 2024, the revenue generated by Brazil’s textile and apparel supply chain amounted to BRL 221 billion, corresponding to an average textile production of 2.2 million metric tons in 20242.
In addition, Brazil is the world’s fourth-largest producer of knitted fabrics, with production totaling 475.800 metric tons in 2024, and ranks among the five largest global producers and consumers of denim. The country maintains its prominent position on the global stage as both a “producer and consumer”, and is also a world reference in the design of beachwear, jeanswear, and homewear, while also experiencing growth in the fitness and lingerie segments3.
The fashion industry generates thousands of jobs every year. In 2025, it provided 1.34 million formal jobs and 8 million indirect jobs, 60% of which were held by women. According to data from IEMI – Market Intelligence, in 2025 the number of companies in the sector totaled 25.7 mil formal production units in Brazil4.
However, while there are reasons to celebrate the growing importance of this market, on the other hand, it remains an industry that is highly susceptible to informality. Therefore, despite its glamorous image, it also has a rather dark side that requires the utmost attention, both from the business owner at the helm of the enterprise and from the attorney, who must be prepared to deal with the various complex legal issues involved.
The relationship between law and fashion dates back to the year 2000, when it emerged in France and Italy5. However, the initial discussion regarding the need for a more discerning and critical approach by the legal community to the fashion world began in the United States, led by Professor Susan Scafidi. Her first initiative related to the intersection of fashion and law took place in 2005, with the creation of a blog called Counterfeit Chic6.
Subsequently, with the purpose of studying and discussing the issues affecting this industry and, most importantly, with the intention of amending U.S. law to provide protection for fashion creations (given that, in the United States, textile and apparel designs are considered utilitarian and, as such, are not eligible for protection under either copyright or industrial property law), the American professor not only created a course at Fordham University (NY) called Fashion Law, but also founded the Fashion Law Institute7, a nonprofit organization headquartered at Fordham University and the world’s first center dedicated to fashion law and business.
Today, numerous countries and educational institutions are committed to supporting companies in this sector and achieving the best possible outcomes for them, with the aim of addressing issues that are particularly sensitive to the industry. In Brazil, the fashion industry has been in existence for nearly 200 years and, according to a report by Folha de S.Paulo newspaper, in 2019 the country had more than 50 fashion schools across 11 Brazilian states.
Here in Brazil, studies on law and fashion began between 2011 and 2012. In 2012, the first Brazilian Fashion Business Law Institute (FBLI) – was founded8. Years later, in 2017, Brazil’s first postgraduate program in Fashion Law was established at Faculdade Santa Marcelina, which has been internationally recognized as one of the leading institutions dedicated to teaching this subject. In this regard, it is worth noting that several subsections of the Brazilian Bar Association (OAB) have established study committees to discuss the subject. In 2019, the renowned Instituto dos Advogados de São Paulo (IASP) [São Paulo Lawyers’ Institute] established a Fashion Law study committee with the aim of promoting courses, seminars, and legal opinions addressing issues related to the sector.
Brazil, like other countries, does not have a specific law dealing exclusively with Fashion Law. In this regard, there are, in fact, many issues surrounding the subject. For example, the question arises as to whether Fashion Law should be recognized as an autonomous area of law, given, among other factors, the complexity and economic strength of the sector.
Nevertheless, although Brazilian law does not expressly provide protection for fashion creations and articles (as is the case in France, where such creations are protected under its Intellectual Property Code), creations in the fashion industry are indeed protected under the Brazilian legal system by two basic pieces of legislation, depending on the subject matter to be protected: (i) Federal Law No. 9,279 of May 14, 1996, which governs rights and obligations relating to industrial property; and/or (ii) Federal Law No. 9,610 of February 19, 1998, which governs copyright and related rights.
1 FEBRATEX. Cadeia têxtil: entenda as oportunidades deste segmento de acordo com a ABIT. Disponível em: <https://fcem.com.br/noticias/cadeia-textil-entenda-as-oportunidades-deste-segmento-de-acordo-com-a-abit/>. Acesso em: 09.nov.2019.
2 Dados gerais do setor referentes a 2024 [General sector data for 2024] – updated in 2026 by ABIT. You may check this out at: < https://www.abit.org.br/cont/perfil-do-setor >. Accessed on: July 6, 2026.
3 Idem.
4 You may check this out at: < https://www.abit.org.br/cont/perfil-do-setor>. Accessed on: July 6, 2026.
5 SOUZA, Regina Cirino Alves Ferreira de. Aspectos Jurídicos do Fashion Law. Jornal Carta Forense, 02 mai. 2018. Disponível em: <http://www.cartaforense.com.br/conteudo/entrevistas/aspectos-juridicos-do-fashion-law/18184>. Acesso em: 26 jun. 2020.
6 http://intro.counterfeitchic.com/
7 https://fashionlawinstitute.com/about
8 https://www.linkedin.com/company/fashion-business-and-law-institute
For example, in order to obtain exclusive rights over the distinctive sign identifying its service or product, a business owner is advised to register it as a trademark so as to enjoy legal protection and thereby prevent third parties from making unauthorized use of it. And that is not all. As is well known, a registered trademark can become one of a company’s most valuable assets, as it adds value to its products and services and conveys credibility to the market and consumers, indicating origin and quality and providing the company with a competitive advantage over its competitors. In addition, trademark registration enables consumers to distinguish between similar products or services, grants exclusive proprietary rights to the owner, and allows the owner to license the trademark to third parties or even expand the business through a franchise network, thereby generating significant additional revenue.
Accordingly, to protect its fashion brand in Brazil, a business owner must file an application with the Instituto Nacional da Propriedade Industrial – INPI [Brazilian National Institute of Industrial Property] (similar, for example, to the United States Patent and Trademark Office – USPTO) and await the examination process and the granting or rejection of the application, as applicable. If the trademark is granted, the registration will remain in force for a period of 10 years from the date of grant and may be renewed for successive equal periods, provided that the applicable ten-year renewal fee is paid. Currently, the trademark registration process takes an average of 18 months, provided that no issues arise during the proceedings.
Over time, in addition to the need to protect designers’ creations, it became clear that the law also needed to address other issues arising from this industry, including: (i) Environmental issues, such as the improper disposal of textile waste; (ii) Labor issues related to the improper exploitation of employment relationships, unfortunately often even under conditions analogous to slavery; (iii) Tax issues, in view of Brazil’s high tax burden; (iv) Criminal issues arising from plagiarism and counterfeiting practices, among other offenses; (v) Contractual issues resulting from the plurality of agreements and other legal instruments involved and, consequently, the need to analyze the entire body of contractual obligations within which the various issues relating to fashion creations arise, as well as consumer protection, advertising, and marketing issues, among others.
In this context, we can say that Fashion Law is an interdisciplinary and multidisciplinary field, meaning that it “intersects with” and ultimately encompasses various areas of law: intellectual and industrial property, corporate law, international law, labor law, tax law, environmental law, criminal law, digital law, competition law, and contract law.
With specific regard to contract law, contracts are a fundamental element in the fashion industry because, as mentioned above, in a market characterized by informality and often lacking a clearly and objectively defined business plan, a well-structured contract that is consistent with the other agreements involved in the same business is essential to mitigate risks and prevent future disputes.
Among the wide range of contracts already established in transactions involving Fashion Law, as well as those being developed on a daily basis in response to the new relationships arising within this dynamic industry, the following may be highlighted:
- Service Agreements with Personal Stylists, fashion consultants, designers, digital influencers, models, photographers, etc.;
- Toll Manufacturing or Cut-and-Sew Agreements;
- Brokerage or Commercial Representation Agreements;
- Sponsorship Agreements;
- Confidentiality Agreements;
- Image Rights License Agreements;
- Import and Export Agreements for Goods;
- Corporate Transaction Agreements (Mergers and Acquisitions);
- Venue Rental Agreements for Events, such as fashion shows;
- Commercial Lease Agreements for Shopping Centers;
- Technology Transfer Agreements;
- Trademark, Patent, and Industrial Design License and Assignment Agreements;
- Franchise Agreements, etc.
Each of these types of contracts has its own specificities. However, in general, the main elements that should be included when drafting a contract in the fashion industry are: (a) The parties; (b) Recitals providing context for the transaction; (c) The subject matter of the agreement; (d) The various obligations of each party; (e) Compensation terms; (f) Any territorial, exclusivity, and rights of first refusal limitations; (g) Provisions regarding ownership of intellectual property; (h) Penalties for failure to comply with the agreed terms or for performing them in a manner different from that agreed; (i) Methods of termination and grounds for contractual termination; (j) confidentiality obligations; (k) Anti-corruption conduct – compliance; (l) Social responsibility (application of environmental sustainability and social responsibility standards); (m) Clauses addressing exceptional circumstances, such as a hardship clause in the case of international agreements; (n) Dispute resolution mechanisms – choice of court or arbitration chamber; and (o) Applicable law in cases involving parties established in different countries.
Neither the list of contracts mentioned above nor that of the clauses referred to is exhaustive. Each transaction must be carefully considered and planned, using the appropriate legal instruments, with clearly drafted and interconnected clauses, so as to address all the particularities and needs of the business and faithfully reflect the true intention of the parties thereto.
In this context, it is worth highlighting that one business model that grows every year is the franchise system. Brazil can be considered a mature franchise market, particularly in the fashion industry. Federal Law No. 13,966 of December 26, 2019, which regulates the business franchising system, places emphasis on the principle of transparency, thereby making this business model more attractive to investors and entrepreneurs interested in this type of venture. Accordingly, many fashion-industry entrepreneurs seeking to expand their operations, whether in Brazil or abroad, opt for the franchising system, whose appeal lies largely in the fact that the business is offered to the franchisee as a “ready-to-wear” product, eliminating the need for concerns regarding development and structuring at the outset of operations and thereby increasing the likelihood of the venture’s success.
According to data from Associação Brasileira de Franchising – ABF [Brazilian Franchising Association], the sector’s revenue in the first quarter of 2026 grew by 10.1% compared to the same period in 2025. This means that the figures show that, in addition to recovering from the period affected by the pandemic, the sector is also clearly showing signs of growth.
Regarding the number of new operations, the survey indicated a growth of 3.1%, with a positive balance between the opening and closing of operations. Overall, the franchising sector recorded the following figures in 2024: 3,300 networks, 197,709 operations, and BRL 273.083 billion in revenue.
Among the so-called top three standout segments — health, beauty, and wellness, areas in which Fashion Law is relevant — the survey showed an 18% increase compared with the first quarter of 2025. According to the ABF, projections for 2026 indicate that, despite the challenges expected during the year, there are also positive prospects, particularly with regard to the creation of formal jobs, with an estimated 1.24 million new positions.
It is worth noting that, in 2024, among the 50 largest franchise networks in the country (by number of brands), 14% operated in the fashion sector and 16% in the health, beauty, and wellness segment10, with the brick-and-mortar store format predominating among the 50 largest franchise networks, accounting for 92%. As for foreign brands operating in Brazil in 2024, the latest data released by the ABF, based on the country of origin of the franchise, showed that they accounted for 12% of the total, comprising 8% from the United States, 2% from England, and 2% from France.
It is therefore essential for both business owners and legal professionals working in this industry to have a thorough understanding of the demands and realities of fashion companies, so that they can consistently seek to develop the best strategy to safeguard brand reputation and mitigate the problems, risks, and potential contingencies inherent to this market.
9 You may check this out at: <https://www.abf.com.br/wp content/uploads/2025/05/DESEMPENHO_DO_FRANCHISING_4T2024.pdf>. Accessed on: July 6, 2026.
10 You may check this out at: < https://www.abf.com.br/wp-content/uploads/2025/05/DESEMPENHO_DO_FRANCHISING_4T2024.pdf>. Accessed on: July 7, 2026.
Author: Daniela Favaretto, partner in the Fashion Law practice, with an emphasis on contracts, and Nathalie Ciriadès Chiarottino, founding partner specializing in contracts, at Chiarottino e Nicoletti Advogados.
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