Shein Accused of Copyright Infringement in New Lawsuit Citing RICO Violations
“At issue here, inexplicably, are truly exact copies of copyrightable graphic design appearing on Shein products,” reads the lawsuit from three designers.
Chinese fast-fashion giant Shein is facing a new lawsuit from three artists and designers, claiming that the company is in violation of the Racketeer Influenced and Corrupt Organization Act (RICO) by infringing on their intellectual property to create and sell copied items. The plaintiffs allege that the brand “has grown rich by committing individual infringements over and over again, as part of a long and continuous pattern of racketeering, which shows no sign of abating.”
As the company continues to pump out as many as 6,000 new items on a daily bases, the lawsuit alleges that Shein uses a “byzantine shell game of a corrupt structure” to steal designs from artists. Using the RICO statutes, the three designers look to put a stop to Shein’s “illegal operation,” which has seen the company “produce, distribute and sell exact copies” of their work.
“At issue here, inexplicably, are truly exact copies of copyrightable graphic design appearing on Shein products,” reads the lawsuit. The designers seek injunctive relief to avert additional design stealth.
If the RICO lawsuit is successful, the designers will receive “treble damages,” or triple the amount of usual damages. David Erikson, an attorney representing the artists, told Forbes that he firmly believes the company has committed crimes: “This is the result of our research and we would hope that Congress and the [Department of Justice] would take notice of it. I do plan to contact the DOJ about it to encourage them to pursue it.”
In a statement from an unnamed spokesperson, the fast-fashion company said, “Shein takes all claims of infringement seriously, and we take swift action when complaints are raised by valid IP rights holders. We will vigorously defend ourselves against this lawsuit and any claims that are without merit.”
The lawsuit marks the latest to hit Shein, following a slew of copyright infringement suits from other designers and artists over the last several years. In May, 24 lawmakers requested that the Securities and Exchange Commission halt Shein’s initial public offering until it was able to verify that it does not utilize forced labor from China’s Muslim Ughyurs.
In more fashion news, the Fashion Revolution Transparency Index 2023 revealed Gucci ranks high on fashion’s sustainability aims, among others.
