Queensland based fashion label Sabo Skirt has filed a lawsuit in Australia’s Federal Court against 16 companies, including Shein and Kmart, alleging widespread copying of its clothing designs, prints, patterns, and trademarks. The case was filed alongside Larry and Luke, the company that holds the associated intellectual property rights, and marks one of the most sweeping design protection actions taken by an independent Australian fashion brand in recent memory.
The lawsuit covers 36 distinct garments, prints, sketches, and patterns that Sabo Skirt alleges were either wholly or substantially copied by the defendants, who sold imitations at lower prices and with inferior quality materials.
Shein Faces the Most High Profile Allegations
Shein’s Australian division is listed as the first respondent in the lawsuit and is alleged to have infringed the designs, prints, or copyrights of six separate items. Among the specific examples cited, one involves a Shein garment that allegedly mirrors a Sabo Skirt design featuring scallop tiles on a white backdrop adorned with red grapes, pears, and white flowers. Another claim targets a Shein dress allegedly replicating distinctive features, including a V split at the center bustline and cut outs at the waist.
Adding weight to the case, the statement of claim reveals that Shein had already entered into a settlement regarding one item, a multicolored knit dress, in June 2024, but allegedly violated that agreement by continuing to market the dress after the settlement was reached.
A Shein spokesperson acknowledged the allegations and said the company takes all intellectual property claims seriously, but declined to comment further due to ongoing legal proceedings.
Kmart and Billy J Also Named
Kmart is accused of infringing Sabo Skirt’s Shoreline print, which features aquatic elements including lobsters, shells, and leaves in varying orientations against a white background, and of using that print across multiple garments. As of March 31, some of those items were still available for purchase online, with Kmart indicating it would not halt sales pending the legal proceedings. A Kmart representative declined to comment, given the matter being before the court.
Australian online fashion retailer Billy J faces the most allegations in the entire lawsuit, accused of replicating 11 garments, either entirely or substantially. The remaining defendants include Australian wholesalers, smaller retail businesses, international retailers based in the United States, and a Singapore wholesaler associated with Shein.
A Last Resort for an Independent Label
Sabo Skirt’s legal counsel told the court that pursuing the lawsuit was a “last resort” for the brand. The statement of claim seeks compensation for lost profits based on the total sales of each respondent, a reduction in the value of Larry and Luke’s intellectual property, and damages for reputational harm caused by inferior imitations being sold under similar aesthetics.
During an initial management hearing at the Federal Queensland Registry on March 23, Justice Roger Derrington acknowledged the complexity of the case, given the number of respondents, and expressed concern it could become “fragmented.” He indicated his intention to keep proceedings unified where possible. The case is scheduled to return for further management on July 7.
Lessons for Brands to Avoid
The Sabo Skirt lawsuit is a signal to the entire fashion industry that independent labels are no longer willing to treat design theft as an unavoidable cost of doing business. For brands on both sides of the supply chain, the case carries clear lessons.
- Register your designs early and document everything. Intellectual property protection is only as strong as the paper trail behind it. Brands that register original prints, patterns, and garment designs create a far stronger legal position when infringement occurs, and make litigation like this more viable.
- A settlement is only as good as its enforcement. The allegation that Shein violated a prior June 2024 settlement by continuing to sell a disputed item is one of the most damaging elements of the case. Brands accepting settlements must build in clear monitoring mechanisms and teeth for non compliance.
- Scale does not protect you from accountability. Both Shein and Kmart are vastly larger organizations than Sabo Skirt, but size is not a legal defense. Retailers and platforms that rely on volume based design sourcing without rigorous IP vetting are carrying legal exposure they may be underestimating.
- Sourcing oversight is a brand risk, not just a legal one. For retailers, a lawsuit like this generates reputational damage that extends beyond the courtroom. Continuing to sell disputed items while litigation is active, as Kmart indicated it would do, sends a message to consumers and the industry that the brand is not taking the matter seriously.
