TFL; Shein Named in Copyright, Racketeering Lawsuit Over Alleged Infringement Scheme
"Shein is facing a new lawsuit that accuses the Chinese retail titan of not only carrying out “large-scale and systematic intellectual property theft from U.S. designers large and small,” but of also engaging in infringement-related racketeering activities in the process. According to the complaint that they filed in a California federal court on Tuesday, independent designers Krista Perry, Larissa Martinez, and Jay Baron claim that Shein and various related entities, including Roadget Business and Zoetop Business, (collectively, “Shein”) are on the hook for copyright and trademark infringement in connection with their practice of “produc[ing], distribut[ing], and selling exact copies of their creative works,” which they allege is “part and parcel of Shein’s ‘design’ process and organizational DNA.”...
For each new product sold on Shein’s website, the plaintiffs claim that the initial production run is as low as 100-200 units per SKU, compared to “the thousands of pieces typically produced by traditional peer retailers.” The purpose of this is that it enables Shein to “wait to see if anybody complains that the design was stolen,” and if they do, it can swiftly settle with the company."
