A legal battle is currently underway between a group of three graphic designers and the popular Chinese fast-fashion brand Shein. The designers are making serious allegations, claiming that the company is knowingly and purposely engaging in copyright infringement and racketeering in order to maintain its competitive edge in the market.
The designers are seeking justice for what they consider to be egregious violations of their intellectual property rights.
Read to know more about why and how is the fashion giant getting sued.
Why Is Shein Getting Sued?
There has been an accusation made against Shein by a group of designers for selling their designs as exact copies. It is alleged that Shein utilizes undisclosed algorithms to determine the latest fashion trends, which the designers believe cannot be done without copying the works of other artists.
The lawsuit was filed in a California federal court on Tuesday, and the claim states that Shein has amassed a great deal of wealth by repeatedly infringing upon the designs of individuals.
Therefore, the group of artists made the decision to utilize the Racketeer Influenced and Corrupt Organizations (RICO) Act as a means of reprimanding SHEIN for their deliberate actions of distributing counterfeit versions of their original creations, even after repeated requests had been made for their removal.
Why Is Shein Getting a Rico Charge?
Shein, a well-known e-commerce giant, is currently facing a fresh lawsuit for violating the federal anti-racketeering act. The accusation is that Shein has been copying the works of independent designers without their prior knowledge or consent. The plaintiffs, namely Krista Perry, Larissa Martinez, and Jay Baron, have suffered significant harm to their businesses due to Shein’s unethical business practices.
These practices include not only copying designs but also environmental damage, unsafe working conditions, and tax evasion. The designers have lost profits and suffered a tarnished reputation, and they are now seeking justice through the RICO Act.
What Is The RICO Act?
The RICO statute, which was enacted back in 1970, aims to eradicate organized crime’s infiltration into legitimate organizations operating in interstate commerce, as stated by the Department of Justice. Racketeering, the illegal act of operating a business, covers a wide range of crimes that occur in business dealings.
It prohibits individuals or organizations from participating in ongoing criminal enterprises, such as gangs or mobs, that engage in organized criminal acts, including but not limited to murder, kidnapping, gambling, arson, robbery, bribery, and extortion.
One of the most famous RICO cases in US history is the United States v. Gotti, also dubbed “The Trial of the Century.” John Gotti, a notorious and infamous New York City mobster who was once the head of the Gambino crime family, was indicted on multiple charges, including RICO violations, back in 1990.
Source: Lawsuit.
