Nelly Wins Copyright Case Against Shein But Faces High Legal Costs

Swedish fashion company Nelly has won a copyright infringement lawsuit against Shein's Infinite Styles Ecommerce for unauthorized use of its promotional images. The Market and Patent Court ruled in favor of Nelly, prohibiting Shein from using the disputed images and imposing a penalty of 500,000 SEK on Infinite Styles Ecommerce for any violations. However, Nelly lost its claims against Shein's other two companies and was ordered to pay around one million SEK in legal costs, exceeding the damages awarded.

Nelly's CEO Helena Karlinder-Östlundh expressed disappointment with the overall ruling, emphasizing the difficulties current regulations pose in handling such players in the market. "While we welcome the court's decision to protect our copyrights, the fact that we must pay significant legal fees highlights shortcomings in the system," she said. Nelly is considering appealing the decision, underscoring the case's importance for fair competition and legal adherence in the Swedish fashion market.

Shein, through European press officer Robin Kiely, stated that they take copyright infringement seriously, have removed the disputed images, and are willing to cooperate with Nelly to avoid such issues in the future. This verdict marks a partial victory for Nelly but illustrates the complexities and financial burdens in enforcing intellectual property rights against multinational fast-fashion entities.