Shopify, a leading ecommerce platform developer, has initiated legal proceedings against a U.S. subsidiary of JOYY Inc., a prominent video-based social media platform listed on NASDAQ. The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges that Shopline Commerce Pte. Ltd. and Shopline US Inc., subsidiaries of JOYY, have engaged in software infringement by creating a copycat version of Shopify’s flagship program, Dawn.
Dawn, lauded by Shopify as a culmination of extensive creative effort and substantial financial investment, enables the seamless creation of customizable storefront templates, empowering Shopify merchants to establish a compelling online presence. According to the lawsuit, Dawn is safeguarded by copyrights registered in the United States, highlighting Shopify’s commitment to protecting its intellectual property.
The crux of the legal dispute centers on allegations that Shopline replicated Dawn and distributed it under the moniker “Seed,” a move deemed by Shopify as a “thinly disguised knockoff.” Shopify contends that Seed exhibits conspicuous traces of wholesale copying, ranging from file structure and layout to function names and lines of code. Notably, Shopify asserts that the presence of the “Shopify” name in various iterations of Seed’s code further corroborates Shopline’s alleged infringement.
Despite reaching out to JOYY for comment, Ecommercenext.org has yet to receive a response, leaving the official stance of JOYY undisclosed. However, a spokesperson for Shopify has affirmed the company’s resolute stance, stating that they have taken “aggressive legal action” to safeguard the integrity of their products and intellectual property.
The lawsuit asserts that Shopline’s actions create a violation of Shopify’s copyright protections both domestically in the U.S. and internationally. Shopify alleges that Shopline’s methodology involved unauthorized copying of Dawn, followed by a translation into a different programming language and subsequent cosmetic alterations. The evidence presented by Shopify purportedly showcases overwhelming similarities between the directory layout, code contents, and organization of Seed compared to Dawn, suggesting a lack of independent development.
In its legal pursuit, Shopify is seeking a cease decision against Shopline, alongside unspecified statutory damages and reimbursement of legal fees. As of now, the district court has not scheduled preliminary dates for a hearing, leaving the trajectory of this legal battle uncertain.
