WeeklySA_AdminINFRINGEMENT: Lawsuit by three fashion designers says Shein has grown rich by repeated copyright infringements in a ‘continuous pattern of racketeering’…
By AP
China’s fast-fashion retailer Shein is facing a lawsuit that claims the clothing maker’s copyright infringement is so aggressive that it amounts to racketeering.
The filing this week, by three fashion designers in a United States court, claims that Shein is in violation of the Racketeer Influenced and Corrupt Organizations Act, better known as RICO, a law originally crafted to prosecute organised crime.
“Shein has grown rich by committing individual infringements over and over again, as part of a long and continuous pattern of racketeering, which shows no sign of abating,” the filing said.
In an organised effort to create as many as 6 000 new items per day, Shein has used a “byzantine shell game of a corporate structure” to rip off designers, a coordinated illegal operation that can best be combated through the use of RICO statutes, according to the lawsuit.
The lawsuit is just the latest in a series of difficulties Shein has faced. In May, a bipartisan group of two dozen lawmakers asked the Securities and Exchange Commission to put the brakes on an initial public offering by Shein until it verified that it does not use forced labour from the country’s predominantly Muslim Uighur population.
The lawsuit, filed by three fashion designers in the US District Court for the Central District of California, alleged that “Shein produced, distributed, and sold exact copies of their creative work.”
“At issue here, inexplicably, are truly exact copies of copyrightable graphic design appearing on Shein products,” the civil lawsuit states. Shein did not immediately respond to a request for comment by The Associated Press on Friday.
The designers are seeking unspecified damages and want injunctive relief to prevent further racketeering activity. Shein has not said whether it plans to go public this year, but there have been reports that the company was raising money in anticipation of a US listing before the end of the year.
Shein spokesperson Peter Pernot-Day has said the company takes transparency across its entire supply chain seriously. But a Congressional report last month unloaded a blistering critique of Shein and another Chinese fashion retailer, Temu.
The report is part of a continuing Congressional investigation into products offered to American consumers that could be made with forced labour in China. As part of the probe, the committee sent letters in early May to brands Nike and Adidas, as well as Shein and Temu asking for information about their compliance with the anti-forced labour law.
Shein said at the time that the company’s “policy is to comply with the customs and import laws of the countries in which we operate.” It also said it has “zero tolerance” for forced labor and has implemented a robust system to ensure compliance with US law.
SPUR BUYS 60% OF DOPPIO ZERO
STAKE: Deal will nearly double Spur’s speciality portfolio, increasing its share of the speciality daytime dining market substantially…
By Lehlohonolo Lehana
Restaurant Group Spur, which owns brands such as RocoMamas, Hussar Grill and John Dory’s, has bought a 60% stake in restaurant group Doppio Zero.
Announcing the development yesterday, Spur said that the Doppio Zero brand, owned by the Doppio Group along with Piza e Vino and Indian cuisine offering Modern Tailors, had “extensive expertise in the coffee speciality, offering a bakery café experience during the day and more sophisticated dining experience at night”.
At the same time, it said the acquisition, the value of which it didn’t disclose, would give Spur its first significant daytime dining option.
Spur said its strategy was to expand into categories, markets and channels where it is not fully represented.
Its current speciality dining portfolio currently comprised 40 restaurants across The Hussar Grill, Nikos and Casa Bella brands with dinner trade representing about 71% of speciality turnover.
The Doppio Group will nearly double Spur’s speciality portfolio and enable the group to increase its share of the speciality daytime dining market substantially.
“As the Doppio Group operates predominantly in Gauteng, with only 4 of the restaurants located outside the province, the transaction creates an opportunity for the group’s franchisees to invest and expand their brand portfolios nationally, particularly with Doppio Zero, which is the most established of the brands,” said Spur.
The first Doppio Zero opened as a bakery and café in Greenside, Johannesburg, in 2002. The offering expanded from an artisanal and exclusive bakery into a full-service restaurant, offering Mediterranean specialities and traditional Italian fare.
The Doppio Group generated sales of over R600 million in the financial year that ended February 28 2023.
A total of 669 employees will be transferred from the Doppio Group, with 14% being support staff and bakery employees. The remaining staff are employed at the company-owned restaurants.
Piza e Vino, a pizzeria with café-style dining and al fresco seating, will add to Spur’s existing Italian offering provided by Panarottis (78 restaurants) and Casa Bella (6 restaurants).
