What happened 

Independent U.S. designers Krista Perry, Larissa Martinez, and Jay Baron filed a lawsuit in California alleging that Shein produced and sold exact replicas of their copyrighted graphic designs. The plaintiffs claimed the company uses a sophisticated technological infrastructure to scrape the internet and social media for trending art.

Once a popular design is identified, the system allegedly directs a decentralised network of suppliers to manufacture it in small batches to test the market, often without the original creator's knowledge. 

If the item sells well, production is scaled up; if a copyright claim is made, Shein reportedly uses its complex corporate structure to deflect blame onto third-party vendors. 

Why it happened 

The root cause is a business model that prioritises hyper-speed and data-driven trends over original design. Shein’s "secret algorithm" is designed to maximise commercial potential by mimicking what is already successful online. 

The problem is exacerbated by thorough corporate opacity: Shein operates through a "byzantine shell game" of various entities (such as Roadget Business and Zoetop), which the lawsuit argues is intentionally designed to make it nearly impossible for individual artists to identify who to sue or hold accountable for the infringement.