Swedish fashion company Nelly is taking legal action against Chinese e-commerce giant Shein, accusing them of stealing images from Nelly's website. The case, which highlights issues of intellectual property in the fashion industry, will be heard in Stockholm's Patent and Market Court. Nelly's CEO emphasizes the importance of the case for the industry, as Shein has been criticized for its ultra-fast fashion model and labor practices.
Swedish Fashion Brand Nelly Sues Chinese E-commerce Giant Shein for Image Theft
Swedish Fashion Brand Nelly Sues Chinese E-commerce Giant Shein for Image Theft
In one corner stands the Chinese e-commerce giant Shein, and in the other, the Swedish fashion company Nelly. The dispute between the two is now set to be resolved as Nelly sues Shein for allegedly stealing images from the fashion company's website.
The process has been ongoing for a year but may now be nearing a conclusion. On Tuesday, the hearings will begin in the Patent and Market Court in Stockholm.
– "I really hope we get a conviction. It's important for us but also for the entire industry not to let this pass," says CEO Helena Karlinder-Östlundh when TT meets her at Nelly's store in central Stockholm.
Customers Alerted
At lunchtime on a Friday, it's clear in the store who the fashion company's main target group is: younger women.
It was also through tips from their customers that Nelly became aware of the image thefts. On Shein's website, there were several fashion images of different clothing items. However, the images and garments were identical to those Nelly had on their own website.
– "We have found over 50 images in total, so it feels very systematic on their part. They have taken images of the items that were our top sellers," says Helena Karlinder-Östlundh.
When Shein was made aware of the image thefts, they chose, according to Helena Karlinder-Östlundh, to remove the images, but none of the fashion giant's three companies have wanted to take any responsibility.
A Grey Area
The lawsuit only concerns the theft of the images themselves, not that Shein plagiarized Nelly's various products.
– "It's difficult in the fashion industry because you get inspired by each other and different trends. It's a grey area, but for me, it was so obvious that there was an infringement," she says.
Shein has become synonymous with what has come to be called "ultra-fast fashion," posting thousands of new items on its website daily, often at very low prices. The company has been heavily questioned, not only from an environmental perspective but also in terms of labor rights. A BBC documentary aired earlier this year showed how people work 75 hours a week with only one day off a month. The company has also been rumored to be heading for an IPO with a staggering valuation of $66 billion.
In comparison, Nelly, which is listed on the Stockholm Stock Exchange, is an extremely small player. Despite this, they now choose to bear the costs of pursuing the case further. How much this costs the company, Helena Karlinder-Östlundh does not want to disclose but admits:
– "We know what we've spent on this, and it's a lot, I can say it's more than I thought when we entered the process."