SHEIN fate depends on the California court verdict on copyright infringement

A new lawsuit filed in the United States alleges that the SHEIN site maintains its edge by engaging in ‘egregious’ copyright infringement that constitutes racketeering. If the allegation is proven it might be an end for the retail giant.

The complaint was filed in California federal court on behalf of three designers who claimed they were ‘surprised’ and ‘outraged’ to see their products faithfully copied and sold by the Chinese fast-fashion retailer.

The complainant alleged that the reproduced products weren’t ‘close call’ copies, where designs are interpreted with some liberties, but were ‘truly exact copies of copyrightable graphic design’ that were sold by SHEIN.

The Racketeer Influenced and Corrupt Organizations Act, or RICO, is a federal law that was enacted in 1970 to combat organized crime.

The law prohibits a wide range of criminal activities, including racketeering, bribery, and extortion.

So, the RICO charge is a serious allegation, and it could have a significant impact on SHEIN’s business.

Several users on Twitter are contemplating what the future lies for SHEIN and whether it’s shutting down.

SHEIN is a Chinese online fashion retailer that has become one of the most popular and successful e-commerce platforms in the world.

Founded in 2008, it offers trendy, affordable, and diverse clothing, accessories, shoes, and beauty products for women, men, and kids.