Nelly wins case against Shein but pays legal costs
Swedish fashion retailer Nelly won its copyright case against Shein but must pay the Chinese company's legal costs. The court fined Shein for stealing Nelly's images but rejected ongoing penalties. Nelly's CEO called the outcome disappointing despite the partial victory.
A Swedish court ruled on Friday in the high-profile case between fashion retailer Nelly and Chinese fast-fashion giant Shein. The Patent and Market Court found Shein guilty of stealing images from Nelly's website for its own marketing.
Nelly had demanded 500,000 kronor ($45,000) in damages. The court called this amount reasonable. Shein did not object to paying the fine.
But Nelly lost its request for ongoing penalties. The company argued Shein systematically copied its images. The court rejected this claim.
Nelly must also cover legal costs for two Shein companies. The total exceeds one million kronor ($90,000).
"We welcome the parts of the ruling that went our way, but we're disappointed and surprised by the overall outcome," said CEO Helena Karlinder-Östlundh in a statement. "Winning the case but having to pay most of the opponent's legal costs shows current regulations can't handle this type of market player."
The ruling highlights the challenges smaller European brands face against international e-commerce giants. Even when courts rule in their favor, legal costs can outweigh the benefits. This creates an uneven playing field for local businesses competing with global platforms.
Nelly operates primarily in Nordic countries while Shein sells worldwide. The case represents a growing trend of European companies fighting alleged intellectual property violations by international competitors.