Shein seeks dismissal of copyright infringement lawsuit

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Update:

• Online retailer Shein is trying to escape a copyright infringement lawsuit, arguing the three designers behind the complaint can not target it with claims under the Racketeer Influenced and Corrupt Organizations Act (RICO). 
• Shein argues the RICO Act was extended to cover criminal copyright infringement only to curb large-scale counterfeiting and piracy, something it says doesn’t apply in its case. 
• A trio of artists accused Shein of infringing on their designs and trademark for an art print, throw blanket, embroidered patch and pair of overalls.
• The artists also claim Shein uses a tactic called the Byzantine structure to make it impossible for them to know who to sue. 
• Shein is also trying to get the dismissal of an individual claim of copyright infringement filed by one of the artists, arguing the design in controversy is “commonplace” and not protected by copyright law. 

Shein lawsuit overview: 

• Who: Plaintiffs Krista Perry, Larissa Martinez and Jay Baron have sued Shein Distribution Corp., Roadget Business Pte. Ltd., Zoetop Business Co. and Does 1-10.
• Why: Shein copied, produced and distributed exact copies of the designers’ work, the copyright lawsuit claims.
• Where: The Shein lawsuit was filed in federal court in California.
• What are my options: Try Charlotte Russe as an alternative to Shein.

(July 18, 2023)

Plaintiffs Krista Perry, Larissa Martinez and Jay Baron are independent designers who have filed a lawsuit accusing Shein Distribution Corp., Roadget Business Pte. Ltd., Zoetop Business Co. and Does 1-10 of copyright infringement.

Shein allegedly copied, produced and then distributed exact copies of the designers’ work. These are not products that are close to the same but instead are exact copies of copyrightable graphic design work, the Shein lawsuit claims.

Exact copying allegedly is part of the Shein design process as part of artificial intelligence that is used to systematically steal intellectual property, according to the lawsuit.

“Shein is actually a greater societal threat than TikTok — because it contributes mightily to serious problems beyond data security and privacy, such as environmental damage, sweatshop (or worse) labor conditions, tax avoidance, child safety, as well as the subject of this lawsuit, large-scale and systematic intellectual property theft from U.S. designers large and small,” the Shein lawsuit says. “Worse, there is every worry that the Shein high-tech business model, described below, will spread and lead other industries on a race to the bottom.”

Shein became world’s top clothing company through high tech, not high design, lawsuit says

Shein is led by tech genius Xu Yangtian, known at Chris Xu, who used technology to make the company the world’s top clothing company through an algorithm to determine fashion trends and produce products while including illegal aspects such as intellectual property theft, according to the copyright lawsuit.

The plaintiffs are asking for damages, attorneys’ fees and an injunction to prevent Shein from continuing the alleged misconduct.

Shein owner Zoetop was fined $1.9 million by the state of New York for its handling of a 2018 data breach that included the theft of information from 39 million accounts.

Have you purchased clothing on Shein? Let us know in the comments.

The plaintiffs are represented by Jeffrey S. Gluck of Gluck Law Firm and both David Alden Erickson and Antoinette Waller of Erickson Law Group.

The Shein lawsuit is Perry, et al. v. Shein Distribution Corp., et al., Case No. 2:23-cv-05551, in the U.S. District Court for the Central District of California, Western Division.

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