Shein: a deep dive into trademark activity

Chinese online fast-fashion retailer Shein was the most searched fashion brand worldwide in 2022. In the same year, its total revenue reached $23 billion, with net profit totalling $800 million. By attracting young consumers – many of whom are under the age of 30 – through low prices, on-trend fashion and speedy delivery, the company has quickly grown its clientele and now delivers to customers in more than 150 countries.

However, Shein is frequently under fire for claims of alleged IP infringement, most often copyright and trademark infringement over copycats and unauthorised reproductions of artwork and clothing designs. At least three lawsuits are ongoing in the United States, involving parties such as Levi Strauss & Co.

What, then, is Shein’s stance towards protecting its own intellectual property?

Trademark filing activity increased in 2017

Shein officially claims that it was founded in 2012, but it has been reported that the company was established in 2008 as ZZKKO and later renamed as SheInside in 2012, when it branched into wedding dresses. Three years later, the company rebranded to Shein, as it sought a name that was shorter and easier to remember.

This repeated rebranding could explain Shein’s trademark filing activity in its early years. According to data from Clarivate, the company filed its first trademark in 2011. It was, however, for ‘ROMWE’, a Chinese e-commerce retailer that Shein acquired in 2014 (‘ZZKKO’ was filed in 2013, five years after the company was established).

Between 2011 and 2016, Shein filed only an average of five applications annually. On closer inspection, it filed no applications in 2014. But the company saw a small spike in activity in 2015, when it filed 16 trademark applications, coinciding with the company’s rebranding to ‘Shein’. This was also reflected in its applications – 12 of them sought protection for ‘SHEIN’, ‘SHEINTEE’ and ‘SHEIN SHE IN SHINE OUT’ in China, the European Union, the United Kingdom and the United States.

Filing activity picked up further in 2017, when Shein filed 81 applications – a figure that represents nearly three times the number of applications that it owned. The following year, filings slowed again to just 52.

In 2020, things began to ramp up. Shein filed 119 applications that year – the first time it had exceeded 100.

In 2021, it more than doubled that figure, reaching 318 applications. This momentum continued in 2022 with a 16% increase (368 applications) – and, as at July 2023, Shein has filed 203 applications in 2023. This suggests that it is on track to file a similar or greater number of marks as it did in 2022.

As a result, Shein is now responsible for 1,339 trademark applications. A notice on the company’s website notes that its trademark registrations are held by a Singapore company, Roadget Business Pte Ltd. Some are also held by two businesses in Hong Kong: Zoetop Business Co Ltd and Shenhe International Holdings Group Co Ltd.

However, Clarivate has been unable to locate copyright filings owned by Shein.

China is top filing destination, accounting for 19% of portfolio

Shein has filed trademarks at 52 registers worldwide. China’s register takes the lead with 253 trademarks, accounting for 19% of all filings. China is therefore Shein’s most important jurisdiction, which is hardly surprising as the company’s reported 6,000 clothing factories are located there.

Filing trademarks in manufacturing hubs seems to be central to Shein’s global IP strategy. As the company moves some of its production out of China and localises manufacturing in South America, Brazil and Mexico (where it has filed 130 and 118 trademarks, respectively) already account for 19% of its trademark portfolio – and are expected to grow in significance. In April 2023, the company announced that it will invest nearly $150 million in Brazil to establish a network with 2,000 local textile manufacturers. A month later, it was reported that Mexico, too, is expected to become a manufacturing hub.

At the same time, Shein protects its trademarks in its major consumer markets. Topping this list is the United States. Home to most of its customers, the United States is Shein’s second most important trademark filing jurisdiction with 134 applications. Shein has also been eyeing the European market; it has filed 200 trademarks at the EUIPO and the UK Intellectual Property Office, while establishing its regional headquarters for the Europe, Middle East and Africa market in Dublin. Pop-up stores have appeared in Barcelona, London, Madrid and Paris, in addition to three distribution centres in Italy, Poland and the United Arab Emirates.

Among Shein’s top 10 registers is India’s, with 31 filed trademark applications – and this number is expected to grow. In June 2023, three years after the Indian government banned the app as a retaliatory move against China, Shein signed a licensing deal with Reliance Industries. Although Shein can only provide production support and training to local suppliers, more than 25,000 small and medium-sized enterprises will manufacture Shein-branded products that will require trademark protection.

Interestingly, despite moving its headquarters to Singapore in 2022, Shein has only filed 24 trademarks in the country so far. It was also around this time that Shein transferred its trademarks – previously held by Hong Kong-based Zoetop – to Roadget, which was established in 2019 and became the company’s legal entity in 2021.

One-third of protected marks relate to in-house brands

Unsurprisingly, Shein’s most protected mark is its company name. The group has filed around 200 applications for ‘SHEIN’ and has proactively sought protection for its in-house portfolio of brands.

Its remaining three brands – Glowmode, Petsin and SlowSunday – are accounted for with 18, 16 and 16 applications, respectively.

Across its top 10 in-house brands, Shein has filed a total of 429 marks, comprising 32% (nearly one-third) of its portfolio. It has also filed one application each for ‘ZZKKO’ and ‘SHEINSIDE’.

Protection in Nice classes centre on core business

Similarly, Shein’s trademark protection across Nice classes focuses on the goods and services that it offers. Known for selling clothing and lifestyle products, especially apparel, footwear, accessories and beauty products, Shein has filed a large proportion of its marks in related classes, namely:

• Class 3 (fragrances and cosmetics);
• Class 14 (jewellery and accessories);
• Class 18 (leather goods and luggage);
• Class 25 (clothing, footwear and headgear); and
• Class 35 (retail services).

Given that an estimated three-quarters of Shein’s sales are in the apparel category, it is no surprise that 561 applications have been filed in Class 25 and comprise nearly one-third of its portfolio. Another 18% are in Class 35, and 9% and 8% are in Classes 18 and 3, respectively.

At least 10 IP litigation matters in the United States

Shein has put in place an online portal for rights holders to submit IP-related complaints, following which affected listings may be removed and users terminated. As it states in its IP notice: “As we ask others to respect our intellectual property rights, we respect the intellectual property rights of others.”

However, allegations of IP infringement suggest that Shein needs to ramp up its filing activity. At least three trademark infringement lawsuits are pending in the United States, according to data from Docket Navigator, namely:

• Levi Strauss & Co v Shein Group Limited et al (NDCA-5-18-cv-05247);
• PRL USA Holdings Inc v Zoetop Business Co Limited et al (CDCA-2-21-cv-02424); and
• Yiwu Lubo Trading Co, Ltd v Roadget Business Pte Ltd et al (NDIL-1-22-cv-04444).

Another two lawsuits are currently undergoing mediation and five have been dismissed or settled.

The lawsuits claim that Shein is wilfully manufacturing and selling products that infringe and dilute trademarks owned by other companies, and continue to do so even after suspending sales. For instance, Levi Strauss & Co claims that infringing products were still offered for sale “though, on information and belief, [Shein] had edited images of the Shein Infringing Products to obscure the infringing designs”.

Shein is also embroiled in “dozens” of lawsuits alleging design theft, the Wall Street Journal reported in July 2022. Among the most recent cases against Shein is one brought forth by H&M, which is suing Shein for copyright infringement in Hong Kong, and another by three independent designers, who are accusing Shein of “egregious” copyright infringement.

In response to these allegations, a spokesperson said in July 2023: “Shein takes all claims of infringement seriously, and we take swift action when complaints are raised by valid IP rights holders. We will vigorously defend ourselves against this lawsuit and any claims that are without merit.”

Shein did not respond to WTR’s request for an interview.

Outlook

Shein will continue to grow in popularity and prominence. In August 2023, it entered a partnership with US fast-fashion retailer Forever 21 that may, in future, allow Shein shops to operate inside Forever 21’s 560 stores worldwide. This could lead to a more expansive trademark portfolio and, given that Shein has been intensifying its filing activity in recent years, it seems that the company is already putting in place a proactive rights protection strategy.