Rethinking Trademark Rights in Circular Economy from Fashion Upcycling Perspective

Abstract

The fashion industry plays a significant role in the global economy but significantly harms the environment by overusing and polluting natural resources. Like many others, Malaysia's fashion sector operates on a linear economic model that generates substantial waste and contributes to environmental degradation. This study explores the intersection of sustainable fashion and trademark rights in implementing circular economy principles in fashion industry. The purpose of this research is to critically examine the legal tension between brand protection and sustainable practices, identifying the extent to which legal frameworks support or hinder circular initiatives. A qualitative legal research method was employed, involving doctrinal analysis of relevant laws, policies, and case studies. Findings highlight successful sustainable practices in fashion industry, such as textile recycling, second-hand markets, and take-back programs in Malaysia, which align with circular economy principles. It also reveal that while trademark law plays a crucial role in safeguarding brand identity, it can unintentionally obstruct upcycling of branded goods, which are key components of circular fashion. The study concludes that amendment to Trademark Act 2019 and legal reforms approaches are necessary to align trademark protection with the goals of sustainability, encouraging a more balanced legal environment that supports both brand integrity and environmental responsibility. By overcoming these obstacles, Malaysia can strengthen its leadership in sustainable fashion and create a model for integrating circular economy practices into other sectors.