Regulators are willing to turn a blind eye to their IP theft.

The big lawsuit against the cheap clothing company is just because the other fast fashion companies were getting screwed over.

They pay taxes in the US and Europe so regulators are willing to turn a blind eye to their IP theft.

Shein

IP: Intellectual Property

Chinese fast-fashion giant Shein is facing a lawsuit from three graphic designers who accuse the company of severe copyright infringement and racketeering. The lawsuit, filed in a California federal court, alleges that Shein has been selling exact replicas of the designers’ work.

The plaintiffs claim that Shein’s fashion trend algorithms, which they believe rely on copying original designs, have enabled the company to profit from repeated acts of infringement.

The lawsuit also accuses Shein of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), arguing that Shein functions as a collective of entities rather than a single entity.

The suit challenges the notion of iconic figures behind Shein, claiming that a mysterious tech genius named Xu Yangtian (Chris Xu) is behind the company.

The lawsuit cites a lack of transparency, referring to the documentary “Inside the Shein Machine.”

One of the designers involved, Krista Perry, discovered that Shein was selling copies of her design titled “Make it Fun.”

She allegedly received an email offering $500 as compensation, which she declined. The lawsuit highlights Shein’s claim of producing limited quantities initially as a strategy to test for complaints about stolen designs before scaling up production.