ALBAWABA - Hennes & Mauritz AB (H&M), commonly known as H&M, has filed a lawsuit against the fast-fashion retailer Shein for violating intellectual property rights in Hong Kong. The legal action was taken to halt the threat posed by the Chinese competitor since 2021.
The list of defendants includes Zoetop Business Co, a Hong Kong-based company that formerly owned Shein, and Shein Group Ltd. H&M, headquartered in Stockholm, sought unspecified compensations and an injunction to prevent Shein from infringing on its intellectual property rights and trademarks.
Details of the lawsuit emerged, including images of dozens of items ranging from swimwear to jackets, which H&M claims as evidence of Shein's theft of its designs. These revelations came to light after a hearing in the High Court of Hong Kong on June 21, with the next session scheduled for July 31.
H&M confirmed the legal action against Shein in Hong Kong, stating that the fast-fashion competitor had "infringed on our various designs," according to a spokesperson from the Swedish fashion company. Shein has refrained from commenting on the ongoing lawsuit.
The court in Hong Kong initiated the proceedings following a hearing in September of the previous year, as stated in a separate document released in May.
Infographic: Shein - The Chinese Global Leader in Fast Fashion
An Unprecedented Lawsuit
Despite numerous intellectual property rights violation cases brought against online retail companies over the past three years, H&M's lawsuit is exceptional, targeting a rapidly evolving competitor. While Shein's sales in 2021 were significantly lower than H&M's, its high sales growth, driven by quick product launches and strong digital marketing strategies on social media, has captured the attention of companies and designers in Western markets, including the United States and Europe.
Shein is not the only Chinese retailer facing legal action. The online Chinese retailer "Timu" was sued in the United States last year, alleging trademark infringement and intellectual property rights violations of the Swedish company, along with "false and misleading business practices." In response, Timu filed a counterclaim, accusing the company of violating antitrust laws by using threats and intimidation to prevent clothing manufacturers from competing with them.
This year alone, more than a dozen lawsuits have been filed against Shein in the United States, with claimants alleging violations of intellectual property rights. Some American lawyers have accused the company of engaging in extortionate practices, a common claim in cases targeting organized crime. These lawyers argue that intellectual property theft by Shein is an integral part of its business model, as the company usually offers limited cash settlements to appease designers.
