Copyright Class Action Targets Shein’s Use of AI and ‘Algorithms’
Shein has once again found itself facing a copyright conundrum.
The fast-fashion mogul has been sued by Alan Giana, an artist who alleged in an April 5 complaint that the company “infringed and continue[s] to infringe copyrights” he owns.
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But the class-action lawsuit, filed in New York’s Southern District, insinuates that Giana is not the only artist facing this issue.
“Widespread copyright infringement is baked into the business,” the complaint alleges.
Throughout the complaint, Shein’s alleged use of artificial intelligence, machine learning and “algorithms” comes into question. The plaintiff’s attorney alleges that the Temu adversary scrapes data from “non-Shein sources” to help identify trends its consumers may have an interest in purchasing.
The company’s success, it goes on to say, “can be attributed to Shein’s use of a proprietary electronic monitoring system that uses algorithms and machine learning—also known as artificial intelligence—to track consumer trends and to identify works, designs and products that Shein’s system predicts will be commercially successful.”
Wesley Mullen, one of Giana’s attorneys, said technology has allowed Shein to infringe on Giana and other artists.
“Our client’s complaint cites at length Shein’s public statements, and press and analyst coverage, which make clear that Shein uses technology including algorithms and AI to identify images to copy and sell,” he said. “That technology is at the heart of Shein’s scheme of systematic and unlawful infringement. And so at the appropriate stage of the case, [Giana] will call on Shein to make the technology available for inspection.”
Giana’s attorneys allege that Shein used the artist’s copyrighted work, “Coastal Escape,” without permission or authorization—but they acknowledge that the class could quickly grow to include “thousands or tens of thousands” of others. At present, no other named plaintiffs or class members have joined the case.
Mullen said the alleged infringement has direct, negative effects on artists like Giana.
“Alan Giana’s life’s work is making and selling works of art like the one pictured in the complaint—the same one that Shein copied and put up for sale on its own website,” he told Sourcing Journal. “Every unauthorized copy that Shein sells is a sale stolen from the artist. And when Shein floods the market with counterfeits, it diminishes the value of the work to other buyers and licensees.”
Importantly, the complaint alleges that Shein knows its technology practices could lead to infringement.
“[Shein’s] years-long use of a sophisticated system of algorithms, artificial intelligence and other electronic surveillance to copy and appropriate copyrighted works designed and owned by others confirm that Shein’s serial copyright infringement is willful—and not merely a result of ignorance that Defendants’ conduct constitutes copyright infringement,” it reads.
If the court finds Shein guilty of willful copyright infringement, statutory damages could amount to up to $150,000 per plaintiff.
Mullen said that could be costly.
“It’s no stretch to imagine that the damages to this class could number in the hundreds of millions of dollars,” he told Sourcing Journal.
But per the complaint, Shein may not think twice about that cash.
“Rather than respect designers’ intellectual property rights, Shein treats the cost of litigating and settling copyright infringement claims as a necessary business expense,” it states.
In addition to asking the court to award monetary damages, Giana seeks an injunction.
If granted, that would enjoin Shein from “using an algorithm or any other systematic method for reviewing or copying any pictures, drawings, paintings, images, patterns, designs and other works in order to design, market, sell, promote or otherwise distribute or display any products on any of their sales apps/websites,” according to the complaint.
While a number of small designers and artists have previously filed complaints against Shein over copyright infringement, the brand has also fielded copyright-related legal complaints from major brands like For Love & Lemons, Uniqlo and H&M.
Shein declined to comment on the case.
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