Carmo Sousa Machado and Ricardo Henriques analyse challenges and changes in Portugal’s fashion sector

Carmo Sousa Machado and Ricardo Henriques, partners at Abreu Advogados, discuss the complex legal challenges facing the fashion industry in Portugal in an interview with Advocatus, and how law firms and businesses should prepare for a rapidly changing landscape.

Carmo Sousa Machado, co-coordinator of the Fashion, Luxury & Lifestyle sector, explains that Abreu Advogados’ investment in this area was driven by “the recognition of a sector with enormous economic relevance – disruptive, creative, and facing numerous challenges – while also being a major employer and an area in continuous growth.”

The main issues identified revolve around the protection of creations from their inception, through licensing and distribution agreements, to employment-related matters such as confidentiality and non-compete obligations. In addition to these factors, there is a growing need to adapt to and manage changes in business models and consumer habits, in a world that is increasingly technological yet also more environmentally conscious.

The lawyers stress that the legal profession must be prepared: “After years of strong growth in this sector, we are witnessing a degree of stagnation, with some renowned brands changing their production and commercial strategies as a result of consumer pressure, which is increasingly focused on sustainability, good practices, and waste reduction,” explain Carmo Sousa Machado and Ricardo Henriques.

They further warn that “technology – particularly AI – will set the legal agenda for fashion in the coming years,” including with regard to “the possibility of protecting virtual designs and the use of artificial intelligence tools in the creative process.”

Read the full article here.