Star Athletica, LLC v. Varsity Brands, Inc.

This case centered on whether the graphic designs on cheerleading uniforms could be copyrighted. Varsity Brands, the largest cheerleading uniform manufacturer, sued Star Athletica for copying its designs. Star Athletica argued that clothing is a functional "useful article" and therefore its designs cannot be separated from the clothing itself to gain copyright protection. The District Court ruled in favor of Star Athletica, holding the designs were inseparable from the functional garment. The Sixth Circuit reversed this decision, finding the graphic elements protectable. The U.S. Supreme Court granted certiorari to resolve a circuit split regarding the separability test. On March 22, 2017, the Supreme Court affirmed the lower court's ruling, holding that a feature incorporated into the design of a useful article is eligible for copyright protection if it can be perceived as a standalone work of art and itself qualifies for protection.

The U.S. Supreme Court ruled 6-2 in favor of Varsity Brands. Justice Clarence Thomas delivered the majority opinion, establishing a clear two-prong test for separability: a design is copyrightable if it (1) can be perceived as a two- or three-dimensional work of art separate from the useful article, and (2) would qualify as a protectable pictorial, graphic, or sculptural work if imagined separately from the useful article. The Court found that Varsity's surface decorations met this standard.

The central dispute was whether the specific decorations on cheerleading uniforms, such as stripes, chevrons, and color blocks, can be conceptually identified and separated from the utilitarian function of the uniform, thereby qualifying for copyright protection as pictorial, graphic, or sculptural works under the Copyright Act.

This landmark decision significantly impacted the global fashion and design industries by lowering the threshold for obtaining copyright protection for graphic elements applied to functional items like clothing. It provided crucial legal clarity on the "separability" test, enabling fashion designers to protect their creative surface patterns more easily. This empowered design houses by strengthening their intellectual property portfolios, but also sparked intense debate among legal scholars and mass-market retailers about potential overprotection, stifling of creativity, and subsequent waves of litigation in the apparel industry.