In a controversial move, fast fashion giant Shein is preparing for a highly anticipated IPO in London this summer. In this article for leading IP publication, World IP Review, Trademark AttorneyRobecca Daveyhighlights the critical need for stricter intellectual property evaluations before companies go public. Robecca argues that comprehensive IP audits could uncover potential risks and enhance transparency for investors. Given Shein’s history of IP infringements, these evaluations are not just advisable—they are essential and as Robecca emphasises, understanding a company’s IP practices should be crucial for making informed investment decisions.
Similarly, Davey believes there should be more stringent tests for companies looking to list in relation to their IP behaviour.
“It comes down to the need to have a really good, clear and transparent IP audit showing that all of a company’s trademarks, copyrights, patents, and so on are in order.
“This should bring to light issues that can help shareholders and investors make their decision about the company’s IP ownership and risk factors such as ongoing claims.
“A history of infringement actions does present quite a lot of risk.”
Other lawyers speaking to WIPR agree there should be more IP safeguards before a company is actually listed but are more circumspect about how this could actually transpire.