Uniqlo Accuses Shein of Copying Round Mini Shoulder Bag
Shein is in the legal hot seat again for a copycat move over a handbag.
Uniqlo Co. Ltd. has filed a lawsuit against Shein Japan Co. Ltd. and two others—Roadget Business Pte. Ltd. and Fashion Choice Pte. Ltd., with all three as operators of the Shein brand—alleging that the sale of a handbag by the Chinese fast-fashion purveyor copies the form of its “Round Mini Shoulder Bag.” Roadget is the entity that owns the Shein trademarks and global website.
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The lawsuit against the three firms was filed on Dec. 28 in a Tokyo District Court. It alleges that the sale is in violation of the Unfair Competition Prevention Act. The complaint demands “immediate cessation of sales of the imitation products, and compensation for damages incurred by the company as a result of these sales,” Fast Retailing Co. Ltd., Uniqlo’s parent, said on Tuesday.
Fast Retailing further said that the lawsuit was filed because the sale of the imitation products, which it said closely resembles that of its bag, “significantly undermines the high level of customer confidence in the quality of the Uniqlo brand and its products.”
“Shein respects the intellectual property rights of others and takes all claims of infringement seriously. We are currently investigating this matter,” the company said.
Fast Retailing said it respects the intellectual property rights of its group and that of others in its business activities. It added that it will take a “resolute stance against any act that infringes on its intellectual property and will take appropriate measures in response, including legal action.”
Fast isn’t the only company seeking legal remedies for copy-catting. It was learned last July that Swedish fast-fashion competitor H&M had filed a copyright lawsuit in Hong Kong High Court against Shein for alleged stealing of its designs. Hennes & Mauritz AB, which operates the H&M banner, is seeking damages and an injunction.
Shein’s two fast-fashion rivals aren’t the only ones filing suit. Last July also saw the filing of a 52-page complaint by plaintiff Krista Perry of Worcester, Mass., and Jay Barron and Larissa Martinez of Los Angeles, in a U.S. federal district court in Los Angeles claiming trademark infringement. The lawsuit alleged that the egregious copyright infringement complained of “constitutes racketeering.”
Under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), cases of criminal infringement of copyright must include certain elements that add “willful infringement for the purposes of commercial advantage or private financial gain.” Another requirement to satisfy a RICO claim is that the offending party is a criminal organization. The district court complaint alleged that Shein’s misconduct is “committed not by a single entity, but by a de-factor associated of entities.”
Shein has also been accused of anticompetitive conduct by e-commerce rival Temu, which last July filed a lawsuit alleging that its rival tried to “coerce” apparel manufacturers in China into exclusive agreements that preclude them from working with anyone else. The lawsuit was filed by WhaleCo Inc., the entity that operates Temu in the U.S., in federal district court in Massachusetts. The complaint was filed after Whaleco had been served with papers by Roadget charging it with trademark and copyright infringement, as well as impersonation of the Shein brand. The two eventually agreed to a truce and each dropped its lawsuit against the other in October, only to be followed by another lawsuit by Temu parent WhaleCo in December. The new complaint was filed in a federal district court in Washington, D.C., claiming Shein targeted suppliers with intimidation tactics, such as penalties for doing business on the Temu platform.
