Shein, a fast fashion retailer based in China, is reportedly facing a lawsuit that alleges its aggressive copyright infringement practices amount to racketeering. The lawsuit, filed recently, claims that Shein’s actions violate the Racketeer Influenced and Corrupt Organizations Act (RICO), a law primarily designed to prosecute organized crime.
Shein’s alleged widespread and systematic infringement of copyrighted materials, such as designs and patterns owned by other individuals or companies. By invoking RICO, the plaintiffs are suggesting that Shein’s alleged actions resemble a criminal enterprise rather than mere copyright infringement.
According to the lawsuit, Shein allegedly employs a complex corporate structure to facilitate its large-scale production of up to 6,000 new items per day. The plaintiffs argue that this intricate setup allows Shein to engage in a coordinated and illegal operation that involves ripping off designers. They propose that RICO statutes are the most suitable legal framework to combat such activities. It’s important to note that the lawsuit and its claims have not been proven in court, and Shein will have the opportunity to present its defense against the allegations. The case will unfold through the legal process, determining the merits of the claims and the potential impact on Shein’s practices and reputation.