HOW TO KNOCK OFF A BILLION-DOLLAR BRAND AND GET AWAY WITH IT (FOR A WHILE)

At the January 2016 Pitti Uomo, the twice-yearly trade fair in Florence, Italy, where trendspotters soak up the latest in men’s fashion from around the globe, a crew of young people paraded through the 16th century Fortezza da Basso to promote sweatshirts and caps with the word “Supreme” in bold white Futura font on a bright red background.

- Francesca Sironi and Alberto Gottardo

They looked just like the ones that run $150 or more for fans lucky enough to find them in stores—and many multiples of that from resellers online.

But the hats and sweatshirts weren’t made by the New York streetwear brand. They were the work of an Italian company that had hijacked Supreme’s look and logo—in other words, a shameless knockoff. And thanks to a combination of entrepreneurial creativity (some might call it cynicism) and the quirks of trademark law, the whole thing seemed to be totally legal.

1. Claim the Brand

The Italian Supreme filed trademark requests in various countries—including Italy, Spain, and China—where Chapter 4 Corp., the owner of the real brand, hadn’t yet secured its registration. With trademark applications in hand, the Italian company started manufacturing fake-but-apparently-legal Supreme gear in Bisceglie, a small fishing port on the Adriatic Sea. There were almost no discernible differences between the knockoffs and the originals.

2. Exploit International