Fast fashion war: H&M sues SHEIN over copyright infringement

Fast fashion war: H&M sues SHEIN over copyright infringement

In a significant development in the fast-fashion industry, Hennes & Mauritz AB (H&M), has initiated a lawsuit against Chinese retailer Shein for alleged copyright infringement. The action comes as H&M attempts to counter the emerging threat posed by Shein’s growing influence in the market since 2021.

Details of Lawsuit

• H&M alleges that SHEIN have been copying H&M designs and selling these designs on SHEIN’s site
• Details of filing includes images of dozens of items ranging from swimwear to jackets, which H&M claims as evidence of Shein’s theft of its designs.
• These revelations came to light after a hearing in the High Court of Hong Kong on June 21, with the next session scheduled for July 31.

An Unprecedented Lawsuit

• H&M’s action is a rare case of an established fast-fashion rival filing suit against Shein with significant lower sales in 2021
• Factors that drew attention of H&M & companies in western markets are:
  • skyrocketing sales growth
  • rapid launch of new products and
  • strong digital marketing strategies on social media

Is Shein shutting down after RICO lawsuit

• Shein was accused by independent designers of infringement-related racketeering activities (an approach commonly used to target organized crime) in a RICO lawsuit
• Claimed to have used “secretive algorithm” to identify trending art and allegedly reproduced artists’ designs for its fast fashion website
• Further claimed that Shein’s intellectual property theft is an integral part of its business model, and the company typically offers a small cash settlement to those designers.

Conclusion: The fast-fashion war intensifies as H&M takes Shein to court over copyright infringement allegations. The lawsuit highlights the serious concerns around intellectual property rights in the fashion industry and could potentially impact Shein’s growth trajectory. This legal confrontation underscores the importance of maintaining unique and legally protected designs in the highly competitive world of fast fashion. As the case progresses, its implications will be closely watched by industry observers worldwide.