The United States District Court for the Western District of Texas has issued a landmark ruling which could set a precedent for the beauty industry, awarding Lashify USD30.5m in damages for Qingdao Lashbeauty's (trading as Worldbeauty) infringement of Lashify's patented DIY eyelash extension technology.
Typically, businesses within the beauty industry are not known for seeking IP protection for their innovations. This often leads to competitive brands offering cheaper “dupes”, which can drive the original innovator out of the market.
Lashify, however, has taken a notably aggressive stance in protecting its IP, including making its extensive patent portfolio available on its website and having engaged in multiple legal battles against counterfeit products and patent infringements.
During the trial, Lashify leveraged the power of storytelling to distinguish itself from the competition. It selected witnesses who could clearly articulate its story to the jury and enlisted an Academy Award-winning makeup artist to highlight Lashify as a disruptive innovator in the market, as opposed to just another beauty brand, by explaining the difference that the DIY eyelash extension technology has made in the industry.
It will be interesting to see the extent to which this case inspires other beauty brands to invest in robust IP strategies to protect their innovations, from securing patents to proactively identifying and challenging infringers, which will in turn strengthen their market position. The jury's finding of wilful infringement has resulted in a significant financial penalty for Worldbeauty, which could increase to over USD90m should the judge grant in favour of Lashify's request for damages to be trebled. This serves as a serious warning to businesses within the beauty industry whose business model revolves around the creation of “dupes".