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 ARTICLE VIII, Section (j)



 To undertake, in conjunction with the Code Authorities of related
 Industries, an investigation of style piracy and to recrnmcnd to the
 Aaninistrator, within a reasonable period of time, appropriate means
 for the regulation and control of style piracy, which recommendations,
 upon the ao-roval of .the Administrator and after such notice and hear-
 ings as he may prescribe, shall become effective provisions of this Code.


 T'iE PRO.BLE:: OF *'ESIGIT PIRACY

 Industry has long strui'gled with the problem of design piracy, and
 the protection of designs is now acknowledged to be a vital factor in
 comnei.ecial life. The design pirate is rec-)nized in ni.ny industries
 as a rienace to progress and to profits. Thousands of manufacturers
 who employ a designing staff or buy original designs have to suffer
 heavy losses by the theft of those designs and their reproduction in
 inferior material at a cheaper cost. The widespread practice of steal-
 ing designs does nothing to stimulate original creations; on the con-
 trary it cheapens and debases them, and its cost to industry is es-
 timated at millions of dollars annually.

 As e. result of a survey undertahcn at rhe request of a number of
 industries, the American Arbitration Association, which is interested
 primarily in the settlemLent of industrial controversies, established
 a National Council on Design Protection. This Council affords a neutral
 medium throu`h which trade associations can work out their design piracy
 problems under Codes.

 The work of the Council is directed by imen and industries vitally
 intereabed in the protection of design.s. Finding in operation an In-
 dustrial Design Registration Bureau, originated by the "Aational Feder-
 ation of Textiles, Inc., which was o-re. to all industries, the Council
 established cooperative relations and has put forth the following plan
 for the c-nsideration of industries having or intcndiiin.- to obtain piracy
1 provisions in Codes.

 Desi_ Piracy _Provisions 'in Ccdes

 Under this Plan, the first important stec is to insert a design
 i iracy cluse in the Code; and if the Code is already ao.-roved, to
I propose it in a supplemental Code. Thie Council has compiled the
J clauses from approved Codes for submission to industries intending
:,to use clauses, but recommends the following as being simple rin
 effective:

 i5o r.iember of the industry sh.-,ll imitate, simulate or
 ap-r'rpriate any original or unique evigi. or style or
 i any traderl:ark or name or brand re istered with the
 industry or its designated :.ency,; and any such ini-
 Station, simulation or a'-ropriation shall corntitute
 San unfair trade practice and a violation of this Code.