SHEIN getting hit by RICO racketeering and copyright infringement lawsuit and stealing intellectual property from big and small designers.
Independent designers Krista Perry, Larissa Martinez, and Jay Baron accuse Shein of “produc[ing], distribut[ing], and selling exact copies of their creative works,” claiming its actions are “part and parcel of Shein’s ‘design’ process and organizational DNA,” according to The Fashion Law.
The suit claims Shein utilizes a “secretive algorithm” that is meant to identify growing fashion trends and purposely produces a small amount of an allegedly stolen item in the event of an infringement allegation. If the company is accused of stealing a design, Shein is able to quickly resolve the matter.
The lawsuit also claims that SHEIN uses a tool to keep track of growing fashion trends. “When Shein copies a small or independent designer, the most likely outcome (without brand protection specialists and specialized software on the lookout) is that the infringement will go unnoticed,” the suit reads.
They went on to say that the retailer relies heavily on other businesses and that they will put the blame on the independent companies instead of taking the blame for themselves. “When Shein copies a small or independent designer, the most likely outcome (without brand protection specialists and specialized software on the lookout) is that the infringement will go unnoticed,” the complaint reads. If demand for the item remains high, Shein will allegedly produce more, as long as the threat of infringement doesn’t exist.
