‘There is No Coco Chanel’: Lawsuit Accuses Shein of Copyright Infringement
Chinese fast-fashion giant Shein is facing a lawsuit filed by three graphic designers who accuse the company of “egregious” copyright infringement and racketeering. The lawsuit was filed in a California federal court on Tuesday, claiming that Shein produced and sold exact copies of the designers’ work. The plaintiffs argue that Shein relies on “secretive algorithms” to determine fashion trends, algorithms that they believe generate copies of artists’ work.
According to the lawsuit, Shein has profited significantly by repeatedly committing individual acts of infringement. The designers allege that the fast-fashion retailer violated the Racketeer Influenced and Corrupt Organizations Act (RICO), asserting that Shein is not a single entity but rather a “de-facto association of entities.”
The suit further alleges that Shein’s corporate structure is designed to avoid liability and prevent disclosure of basic information. The company is described as a decentralized group of entities, with the intention of evading responsibility for its actions.
The designers’ complaint names Xu Yangtian, also known as Chris Xu, as the mysterious tech genius behind the Shein empire. They claim that Shein lacks prominent designers like Coco Chanel or Yves Saint Laurent, emphasizing the secrecy surrounding the company’s operations.
Referring to the BBC Channel 4 documentary “Inside the Shein Machine,” the lawsuit highlights the lack of transparency surrounding the company. It characterizes Shein’s corporate structure as a “big black hole.”
Responding to the lawsuit, a Shein spokesperson stated that the company takes claims of infringement seriously and swiftly addresses complaints from valid intellectual property rights holders. The spokesperson added that Shein would vigorously defend itself against the lawsuit and any claims lacking merit.
One of the plaintiffs, Krista Perry, alleges that Shein copied her design titled “Make it Fun,” which features a multi-coloured design around a phrase. Upon discovering that Shein.com was selling copies of her designs, Perry claims she received an offer of $500 from the email address copyright@shein.com, which she declined.
Shein’s “About us” page states that the company initially produces only 100 to 200 pieces of each model. The lawsuit argues that this limited quantity is intentional, enabling Shein to assess whether any complaints arise regarding stolen designs before producing more pieces.
