The recent settlement of a headline-making trademark dispute between Hailey Bieber’s skincare line and an established clothing retailer offers critical lessons for business owners about protecting their intellectual property. While most of us won’t face off against a celebrity with millions of social media followers, the case highlights risks every business owner should understand and prepare for. Let’s explore the key takeaways that can help you protect your business’s valuable brand identity.
What Happened?
Rhode-NYC, LLC (“Rhode”) was founded in 2013 by former college roommates Purna Khatau and Phoebe Vickers, who left their day jobs to fill the gap in the high-end clothing market. Starting with limited resources but a strong vision and business acumen, they built their luxury clothing brand from scratch. The brand achieved significant success, featuring products featured in major fashion magazines like Vogue and carried by prestigious retailers, including Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus. Numerous celebrities, including Beyoncé, Rihanna, Tracee Ellis Ross, and Lupita Nyong’o, have worn their clothing. By all accounts, the company’s growth had been remarkable when the lawsuit was filed in 2022.
The dispute emerged when celebrity model Hailey Bieber launched her company’s skincare line, “Rhode,” in June 2022. The complaint alleged that in 2018, Bieber’s company attempted to acquire Rhode’s trademark rights, recognizing the potential for confusion between the brands. When Rhode declined to sell, Bieber continued, launching the brand and leveraging her massive social media following (45 million+ Instagram followers) to promote it. Her famous husband, Justin Bieber, also promoted the brand to his 243 million Instagram followers. By contrast, Rhode had just under 200,000 Instagram followers when the lawsuit was filed.
Making matters worse, Ms. Bieber publicly confirmed plans to expand beyond skincare into clothing – Rhode’s core market – writing “Clothes will come :)” in response to a TikTok post. This expansion plan was further evidenced by trademark applications filed by Bieber’s company in May 2022 that explicitly included clothing categories.
Rhode alleged it was damaged by the confusion Ms. Bieber caused in the marketplace and filed suit mere days after she launched her “Rhode” skincare line. After two years of litigation, the parties settled in July of 2024 for an undisclosed amount.
Lesson 1: Start Brand Protection Early
What is the first lesson we can glean from this story? Brand protection should start early. Not long after Rhode launched in 2013, its founders had the foresight to take action crucial to their brand’s future: they secured federal trademark registrations for their brand name. This early protection became their most vital asset and provided the foundation to protect their brand. If they hadn’t registered their marks before Ms. Beiber launched her skincare line, they wouldn’t have been able to file a legal action to protect their rights to the marks.
No matter how small your business is, intellectual property protection can’t wait. Many entrepreneurs postpone trademark registration, thinking they’ll handle it once their brand gains traction or faces a threat. However, federal registration provides immediate advantages that become invaluable as your business grows. Registration enables you to take action in federal court if needed, but it’s also a powerful deterrent to others considering using similar marks.
But securing your trademark is just the beginning. You should also monitor your intellectual property as early as possible and across all market sectors, not just your immediate industry. Rhode evidently monitored its brand across all sectors because it filed suit immediately after Ms. Bieber launched her beauty business.
Lesson 2: Document Everything
The second lesson we learned from this case is the importance of documentation. According to the complaint, Rhode demonstrated their prior attempts to work with Bieber’s team. The company could show that Bieber’s representatives had previously tried to acquire the trademark, proving awareness of their rights (a crucial element of any trademark lawsuit) before launching the competing brand. This highlights the vital role of thorough documentation in protecting your business interests. Every communication about your trademark, evidence of your brand’s use in commerce, and important business correspondence should be carefully preserved. These records can prove invaluable if you ever need to defend your rights.
Lesson 3: Future-Proof Your Brand
This brings us to lesson three, perhaps the most relevant lesson for today’s business owners: the importance of future-proofing your brand. The digital age has made it easier for new competitors to enter markets and potentially threaten established brands. This case shows how social media influence and celebrity status can quickly impact market dynamics. Successful future-proofing requires a comprehensive approach: registering trademarks in all relevant categories, considering international protection for potential global expansion, and building strong market recognition and customer loyalty. As your Business Advisor, I can support you in creating this comprehensive strategy to protect your valuable intellectual property.
The Advisor You Need When Your Brand Is At Stake
I understand the complexities of protecting your business’s intellectual property in today’s dynamic market. That’s why I offer a comprehensive Business Breakthrough Session. In this session, we’ll analyze your current business foundations, including your intellectual property protection strategy. Then, together, we’ll develop a plan to secure your brand’s future and ensure you’re prepared for any challenges. With my support, you can focus on growing your business with the peace of mind of knowing your brand is protected. to get started.
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