Swedish Court Rules Shein’s Subsidiary Infringed Rival Nelly’s Copyright by Using Its Photographs

The Patent and Market Court in Sweden delivered a ruling on October 3, 2024, finding that Shein’s Ireland-based subsidiary, Infinite Styles Ecommerce, infringed the copyright of Swedish fast-fashion rival Nelly. The court determined that Infinite Styles Ecommerce had copied photographs owned by Nelly without permission and made these images publicly accessible on Shein’s Swedish website.

According to the court’s statement, “Infinite Styles Ecommerce has thus been guilty of infringing Nelly’s exclusive rights to the photographs.” This decision follows a copyright infringement lawsuit initiated by Nelly in September 2024.

Nelly, which operates the e-commerce platform Nelly.com and owns its own apparel brand, accused Shein of unauthorized use of its website photographs for marketing purposes. The lawsuit targeted Shein’s use of these images to promote products on its Swedish site.

Shein, a global fast-fashion retailer founded in China and headquartered in Singapore, operates through various subsidiaries, including Infinite Styles Ecommerce based in Ireland. The court’s ruling specifically addresses the actions of this subsidiary in relation to the Swedish market.

The case highlights ongoing legal challenges in the fast-fashion industry concerning intellectual property rights and the unauthorized use of digital content. The court’s decision reinforces the protection of copyright holders against infringement by larger competitors.

This ruling may have broader implications for cross-border e-commerce operations, particularly where subsidiaries of multinational companies are involved in local markets.

Nelly’s successful legal action underscores the importance of securing proper rights and permissions before using competitor content in marketing strategies.

The decision was reported by Reuters and published by SPH Media Limited on October 3, 2024.

As the fast-fashion sector continues to expand globally, this case serves as a reminder of the legal risks associated with copyright infringement in digital commerce.

Stakeholders in the fashion and e-commerce industries should closely monitor developments in intellectual property enforcement to avoid similar disputes.