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Three graphic designers are suing Chinese fast-fashion giant Shein over what they claim is “egregious” copyright infringement and extortion.
In the lawsuit filed in California Federal Court on Tuesday, the designers allege that Shein produced and sold exact copies of their designs.
They claim Shein uses “secret algorithms” to determine fashion trends – algorithms they claim “wouldn’t work” without generating exact copies of the artists’ work.
The designers say the company got rich by “committing individual infractions repeatedly.”
The lawsuit points out that the fast-fashion retailer violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, arguing that these allegations are appropriate because Shein is not just a single entity but rather an “association of de facto entities.”
“No Coco Chanel or Yves Saint Laurent is behind the Shein empire. Instead, there is a mysterious tech genius, Xu Yangtian, also known as Chris Xu,” the lawsuit states.
Citing a BBC Channel 4 documentary, “Inside the Shein Machine,” the lawsuit adds: “When you start to look behind it, who the company is for, it’s a big black hole.”
The complaint alleges that Shein’s corporate structure reveals that the company is a decentralized group of entities so that the company can avoid “liability” and “disclosure of basic information.”
A Shein spokesperson said: “Shein takes all infringement claims seriously, and we take swift action when valid intellectual property rights holders file complaints. We will defend ourselves vigorously against this lawsuit and any claims without merit.”
Krista Perry, one of the designers who showcased the process, created a product titled “Make it Fun,” a print that features a multicolored design around the phrase.
According to the lawsuit, she soon noticed that Shein.com was selling copies of her designs. Following the complaint, she alleges that the email address copyright@shein.com sent her a message offering $500, which she declined.
According to the “About Us” page, Shein says the company only makes 100 to 200 pieces of each model at launch.
These small quantities are intentional; the lawsuit alleges that, before making more parts, Shein can see if anyone complains about a stolen design.
Source: CNN
