Sweden punishes Shein for copyright theft

A Swedish court has ruled against online fast-fashion retailer Shein for copyright infringement in a lawsuit filed by its smaller Swedish rival, Nelly. Here are the key points of the decision:

• Infringement: The Patent and Market Court found that Shein's Irish subsidiary, Infinite Styles Ecommerce, had infringed Nelly's copyright by making copies of the Swedish company's photographs without permission and making them available on Shein's Swedish website.

• Damages/Fine: Infinite Styles Ecommerce was ordered to pay Nelly's legal costs, plus interest, and did not object to Nelly's request for a fine of 500,000 Swedish crowns (approximately $53,400).

• Other Entities: The court dismissed Nelly's claim against two other Shein entities—parent company Roadget Business and Dublin-based Infinite Styles Services—and ordered Nelly to pay the legal costs for those two firms.

A Shein spokesperson stated the company takes all claims of infringement seriously and that the images in question were "removed swiftly." Nelly's CEO expressed disappointment that the case was not successful against all Shein entities and suggested the company might consider appealing the decision.

The ruling has had a lot of coverage in Swedish media, with the message that the court sided with Nelly “in principle” but Nelly is still ordered to cover some of Shein’s legal costs. Generally, Shein is criticized by businesses and consumer organizations in the EU for lower quality products at low prices and for the environmental issues the high level of import causes, as well as copyright infringements.