H&M sues SHEIN for copyright infringement: Can legal action discourage 'copycats'?

Swedish retailer H&M has sued fast-fashion brand SHEIN in Hong Kong for copyright infringement, according to court documents filed in Hong Kong.

H&M has accused SHEIN of plagiarism and “stealing” the designs of its products, from swimwear to sweaters, in the lawsuit, which has reportedly been underway since July 2021.

H&M stated in a court filing that there is “striking resemblance between the products showing they must have been copied” and the “sheer scale of (SHEIN’s) unauthorised substantial reproduction of the copyright works”.

The Swedish company is looking for compensations to unspecified damages and seeking an injunction to prohibit SHEIN from infringing on its copyright and trademarks, according to Bloomberg. The next hearing will be on 31 July.

In a conversation with MARKETING-INTERACTIVE, a H&M spokesperson said the company has an ongoing copyright infringement lawsuit towards SHEIN filed in Hong Kong. "We believe that SHEIN in multiple cases has infringed on our designs and have therefore filed this lawsuit. As it is still an ongoing case, we choose not to comment further." 

Meanwhile, SHEIN’s spokesperson said the company does not comment on pending litigation.

How does it affect SHEIN’s brand image? 

In fact, this is not the first time SHEIN is facing allegations of ripping of designs from budding designers and global fashion e-retailer, hence the brand previously announced its plans to onboard an additional 1,000 aspiring designers and artists to join its flagship incubator programme, SHEIN X. The SHEIN X incubator programme guides designers through the end-to-end process, from product development, manufacturing, to marketing and supply chain logistics.

But that didn’t seem to solve the issue. This time, the lawsuit has drawn mixed reactions as media intelligence firm CARMA saw over 9k mentions across social platforms as of 11am today, with 81.1% of negative sentiments. CARMA’s HK GM Charles Cheung said: 

Netizens have been voicing their criticism of SHEIN's purported wrongdoing.

Despite the possible negative impact on SHEIN's image, Asiya Bakht, founder of Beets Public Relations told MARKETING-INTERACTIVE that she believed the lawsuit does not affect SHEIN's reputation in a serious way as the demographics that buy SHEIN products only care about fast fashion which means cheap clothes.

Agreeing with Bakht was David Ko, managing director of RFI Asia, who said some customers may see SHEIN as a cheaper and more convenient alternative to H&M and other brands, and may not care much about the originality or quality of the products.

On the other hand, Ko said some customers may value creativity and ethics more and may lose trust or respect for SHEIN if they perceive it as a copycat or a violator of intellectual property rights.

Is taking legal action an effective way to clamp down on “copycats”? 

True enough, fast fashion brands used to be accused of copying the designs of major ready-to-wear designers and huge fashion brands. For example, back in January, Nike filed a lawsuit against Japanese fast fashion brand A Bathing Ape (BAPE) in a New York court for trademark infringement and copying some of Nike's famous footwear products.

RFI Asia’s Ko said that for the fashion industry, the lawsuit against SHEIN may have implications for the competition and innovation among fast-fashion players.

It may also encourage more designers to protect their intellectual property and seek legal remedies when they feel their rights have been infringed.

On the creative front, Chris Kyme, co-founder and creative director of Kymechow, said taking legal action is a good call as it can send a message that might discourage the copycats in future, providing they have a solid case.

"Brands should protect the integrity of its original designs, big or small […} We all know this is not unusual in the creative industries in China, where some do not see anything wrong in copying," he added.

By pursuing legal action, H&M is signaling to its competitors and the industry at large that it is committed to defending its intellectual property rights, said Ashvin Anamalai, CEO of DNA Creative Communications. "It could also serve as a deterrent to other fashion companies, warning them about the potential consequences of copying designs from established brands," he added.

It will be fascinating to see how this lawsuit unfolds and what impact it may have on the way fashion companies approach copyright infringement issues.

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