Swedish fashion retailer Nelly appeals Shein copyright ruling

Swedish online fashion retailer Nelly said on Friday it had appealed a court ruling that cleared two units of much larger rival Shein of infringing its copyright.

While Sweden's Patent and Market Court ruled earlier this month that an Ireland-based Shein subsidiary had used copies of photographs owned by Nelly without permission, it cleared two other Shein units of similar wrongdoing.

The court found that Infinite Styles Ecommerce had used Nelly's photographs on Shein's website in Sweden, but dismissed the company's claim against parent group Roadget Business and Dublin-based Infinite Styles Services.

The court imposed a fine of 500,000 Swedish crowns ($53,104) which Infinite Styles Ecommerce Ltd would only have to pay if it infringed Nelly's copyright again. Nelly was ordered to pay the legal costs of the two companies that were acquitted.

“We want the three companies to be held accountable and threatened with a fine if they break the law again,” CEO Helena Karlinder-Ostlundh told Reuters, adding that her company was seeking competition on a level playing field.

“We feel like this is a broader issue, not just for us, but for the entire industry,” Karlinder-Ostlundh said.

Shein, known for its cheap fashion sourced directly from factories in China, did not immediately respond to a request for comment. It previously said it had removed the images in question quickly and was “committed to protecting the rights of intellectual property rights holders.”