A recent legal dispute between two large fashion retailers, Shein and Nelly, has resulted in the court favoring Nelly on the grounds of copyright infringement. The court’s ruling states that Shein, through its Irish subsidiary Infinite Styles Ecommerce, utilized Nelly’s copyrighted photographs without obtaining permission.
The Patent and Market Court announced the verdict last Friday, stating clearly that Shein’s subsidiary, Infinite Styles Ecommerce, had unlawfully duplicated and displayed Nelly’s copyrighted photographs on Shein’s Swedish website. The court stated in its ruling, “Infinite Styles Ecommerce is guilty of infringing Nelly’s exclusive rights to the photographs.”
Nelly, the owner of the e-commerce platform Nelly.com and its own branded clothing line, initially filed a lawsuit against Shein for copyright infringement in September 2024. The court noted that Nelly demanded a penalty of 500,000 Swedish crowns (equivalent to $53,400), to which Infinite Styles Ecommerce did not object.
A spokesperson for Shein stated, “We are dedicated to defending IP rights holders and treat all accusations of infringement seriously,” adding that the disputed images were promptly removed from their platform.
In addition to the penalty, the court also ruled that Infinite Styles Ecommerce is obligated to cover all of Nelly’s legal expenses, along with the applicable interest. However, the court rejected Nelly’s claim against two other Shein establishments – the parent company Roadget Business and the Dublin-based entity Infinite Styles Services. Instead, Nelly was directed to pay the legal fees of these two firms.
Reacting to the verdict, Nelly CEO Helena Karlinder-Ostlundh expressed mixed feelings. She welcomed the aspects of the ruling that favored Nelly, but displayed disappointment and surprise at the overall outcome. The CEO hinted that Nelly might consider appealing the court’s decision.
What was the basis of the lawsuit between Shein and Nelly?
The lawsuit was based on copyright infringement. Nelly claimed that Shein’s subsidiary, Infinite Styles Ecommerce, had used copyrighted photographs belonging to Nelly without obtaining permission.
What was the penalty imposed on Shein by the court?
Shein, through its subsidiary Infinite Styles Ecommerce, was ordered to pay a fine of 500,000 Swedish crowns, equivalent to $53,400.
What are the possible next steps for Nelly following the court ruling?
Nelly’s CEO, Helena Karlinder-Ostlundh, indicated that the company might consider appealing the decision due to their dissatisfaction with some parts of the verdict.
