H&M, the well-known fast-fashion retailer, has filed a copyright infringement lawsuit in Hong Kong against its Chinese competitor Shein. The lawsuit, which was filed in 2021, aims to address the threat posed by Shein’s meteoric rise in the fashion industry.
The defendants in the lawsuit are Zoetop Business Co, the former owner of Shein, and Shein Group. H&M issued a summons in July 2021, requesting unspecified damages and an injunction to prevent Shein from infringing on its copyright and trademarks further.
Details of the filing were made public during a hearing at the Hong Kong High Court on June 21, revealing photos of numerous items ranging from swimwear to sweaters that H&M claimed were evidence of Shein’s design theft. The next hearing is set for July 31st.
A spokesperson for H&M confirmed the lawsuit, stating that Shein had repeatedly infringed on their designs. Shein, on the other hand, refused to comment on the ongoing legal proceedings.
According to a separate court document released in May, the Hong Kong Court first heard the case in September of the previous year, and the judge allowed Shein to defend against H&M’s copyright infringement claims.
While Shein has been accused of intellectual property infringement several times in the last three years, H&M’s lawsuit stands out as a rare instance of an established fast-fashion competitor filing a legal claim. Despite the fact that Shein’s sales in 2021 will be lower than H&M’s, its exponential sales growth, fueled by frequent product launches and robust digital marketing on social media, has piqued the interest of companies and designers in western markets such as the United States and Europe.
In a similar vein, Shein previously sued the Chinese-owned online retailer Temu in the United States, alleging trademark and copyright infringement as well as “false and deceptive business practises.” Temu responded by accusing them of breaking antitrust laws by using threats and intimidation to discourage clothing manufacturers from collaborating with them.
Shein has faced more than a dozen lawsuits in the United States this year alone, with plaintiffs alleging intellectual property violations. Some American lawyers have even accused the company of a pattern of racketeering activity, a strategy commonly used to target organised crime. According to these solicitors, Shein’s business model includes intellectual property theft, with the company frequently offering small cash settlements to affected designers.
As the legal battle between H&M and Shein continues, it highlights the growing importance of intellectual property protection in the fast-fashion industry. The outcome of this case could have far-reaching consequences for how fashion retailers protect their designs and creations in an increasingly competitive global market.
