A few weeks ago I saw a suggestion come across my Hulu welcome screen entitled “The Curse of Von Dutch: A Brand to Die For”. My first impression was that I knew all about the brand, especially the many details of how it was counterfeited into oblivion. Either way, I knew I wanted to watch it to see if my account was correct or if there was more to the story.
Turns out, as comprehensive as I thought my perspective might have been, there were some things I missed, or was not privy to. I worked for their lawyers during the peak enforcement process and I knew things were a little off. And this documentary helps bring that to light.
Bobby Vaughn and Mike Cassel were two surfer dudes who appropriated the IP of a counterculture icon named Kenny Howard a.k.a. Von Dutch (1929-1992). Howard’s philosophy about Intellectual Property was that no one owned anything and that all creativity was meant for the world to share. So, in 1999, Vaughn and Cassel spun off the Von Dutch brand from another fashion line they had that was not doing well.
Before Bobby and Mike knew it, the Von Dutch brand took off. Celebrities were all over it, wearing their apparel on every television channel available. Along with the success of the brand came organized criminals they had previously tapped for startup funds. This made life difficult because there were established cartel captains that demanded cuts from the sales.
But the two surfer dudes, as savvy creatives as they were, could not manage the explosive success of this brand. It was then that they welcomed investors and a CEO from Europe. All of a sudden, French fashion designer Christian Audigier was the face of the brand. Christian blew the brand up to levels no one dreamed. But, as the genuine product sales grew, the counterfeit sales grew exponentially.
“Here’s the problem. When you are already a logo-driven brand where your logo is your main seller its easy to slap a logo on a piece of thing and sell it and call it Von Dutch. We were the second most counterfeited brand in the world next to Louis Vuitton.” ~ European Investor Tonny Sorensen.
This was where my team and I came in. In the early 2000’s, counterfeiting fashion brands on the Internet was at its peak. Yes, the flea markets and street vendors were also going bananas, but Internet sales were new, and I was the guy that handled these types of cases.
What was discovered was that the folks behind this brand never laid a proper foundation for enforcement. They didn’t spend the few cents per item required to tag the genuine goods properly so that they could be differentiated from the fake. By the time they brought in the proper attorneys and investigators, the problem was out of control there was very little that could be done.
“In the height of our business, we were doing probably around the $300 to $400 million mark. The counterfeits were north of a billion for sure.”~ Niels Juul, Von Dutch investor
I’ve met both of the original creatives Bobby and Mike during my years living in Venice Beach and find their stories fascinating. I don’t blame them for the counterfeiting problem (bringing in the cartels is another story). But, when the European investors came in and hired high-priced attorneys corners were cut while people were too busy making money.
The lesson to learn here is that, before your brand takes off, make sure you have already laid the foundation for a good enforcement plan. We can help you with that. Contact us at MI:33 and we will be glad to get things going for you.