Nelly Wins Case Against Shein but Must Pay Legal Costs

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Nelly Wins Case Against Shein but Must Pay Legal Costs
Photo: Pontus Lundahl/TT

The Swedish fashion company Nelly is only partially right in its dispute with the Chinese Shein. The e-commerce giant will have to pay a fine, at the same time Nelly will have to pay for a part of the trial costs.

On Friday afternoon, the verdict was announced in the Patent and Market Court in the high-profile case between Nelly and Shein, where Shein has been accused of stealing images from the clothing company's website to use in its own marketing.

Nelly had claimed a penalty amount of 500,000 kronor, which, according to the court, appears to be well-balanced and to which Shein has no objections.

Nelly had, however, claimed a running penalty as it was alleged that Shein was systematically copying Nelly's images. This claim is rejected.

Nelly will also have to pay the court costs for two of Shein's companies, a total of just over one million kronor.

"We welcome the part of the verdict that went our way, but are at the same time disappointed and surprised by the overall outcome. The fact that we are right in substance but still have to pay a large part of the opponent's court costs clearly shows that today's regulations are not sufficient to handle this type of player in the market," writes the company's CEO Helena Karlinder-Östlundh in a comment to TT.

Nelly has not yet decided whether the verdict will be appealed or not.

Shein writes in a press release that the company takes every allegation of copyright infringement very seriously.

"As soon as this matter became relevant, we took relevant measures and did everything in our power to resolve the dispute together with Nelly," it says in the press release.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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