In a statement, The Iconic acknowledged it had commenced legal proceedings over the allegedly infringing behaviour.
“Due to the matter being an ongoing case, we will not be commenting further,” a spokesperson said.
The Iconic has suffered loss and damage from profits Shein made that they were not entitled to, the Australian online retailer claims.Credit: Bloomberg
A spokesperson for Shein said the company “respects the legitimate intellectual property rights of owners and brands.”
“We will be defending ourselves against the Iconic’s claims, but will not be commenting further as the matter is before the courts,” they said.
On October 7, 2022, Shein’s lawyers issued a letter to The Iconic’s legal counterparts, indicating they would stop selling Dazy-branded clothing. The Iconic is alleging that Shein resumed selling Dazy apparel from at least August 21, 2023.
On September 1, Shein’s lawyers again issued a letter indicating they would stop selling the allegedly infringing clothing, with the exception of scarves, under the Dazy brand. Another such letter was issued on October 6.
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The Iconic alleges that since at least September 2 this year, Shein has recommenced selling and promoting clothes under the Dazy brand.
During the first case management hearing on Friday morning, Justice Michael Lee heard that Shein had been served the legal proceedings on November 28. Shein’s legal counsel, who was only briefed on the matter on Thursday, said the company intends to prepare a defence and investigate a cross-claim.
Shein was founded in China in 2008 and became the world’s largest fashion retailer in 2022. Headquartered in Singapore, it uses algorithms to pick up trending items and adjust supply chains almost instantaneously using artificial intelligence.
Shein’s market share growth has been a cause for concern for many fashion retailers around the world. In Australia, it has hit nearly $1 billion in sales and tripled profits as cost-conscious shoppers trade down and seek affordable alternatives.
In October this year, Shein’s total monthly website traffic overtook The Iconic’s, with Shein sitting at 5.5 million website visits ahead of The Iconic’s 5.2 million, according to Ragtrader citing Semrush data.
The Chinese fast fashion giant has faced criticism for its labour practices, with a group of US lawmakers calling for it to be investigated over whether it uses Uyghur forced labour. In April, a group of independent designers sued Shein in a class action, alleging it of “industrial-scale scheme of systematic, digital copyright infringement”.
The Iconic has faced copycat claims of its own: Bec & Bridge discontinued their relationship with The Iconic after accusing the ecommerce retailer of copying and selling their designs under its own exclusive label, Lover. The Iconic denied the claims and said the Lover range was planned and developed before any visibility of the Bec & Bridge items.
The next case management hearing will be heard in late January, where Lee said he would make a recommendation that the matter be heard in mediation. Lee is the same judge who delivered a 32-page judgment in Bruce Lehrmann’s defamation action against Network Ten and journalist Lisa Wilkinson, remarking that “having escaped the lions’ den, Mr Lehrmann made the mistake of going back for his hat”. Next year, Lee will preside over corporate regulator ASIC’s landmark trial against Star Casino.
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