Shopify has sued Shopline, alleging that the latter copied its customizable storefront template technology, Dawn. The lawsuit claims Shopline's Seed template carries clear evidence of copying, including the presence of Shopify’s name in Seed’s code.
Shopify, based in Canada, has filed a lawsuit against Shopline, headquartered in Singapore. The suit alleges that Shopline copied Dawn, Shopify's customizable storefront template technology. This legal action comes just a month after Shopline launched its own customizable storefront template, Seed, in the US. Shopify's 17-page complaint, filed in the US District Court for the Southern District of New York, claims that Shopline's Seed is a thinly disguised knockoff.
Shopify alleges that Seed still contains instances of the name "Shopify" in its code, indicating clear copying. According to Shopify, Shopline made an unauthorized copy of Dawn, translated it into a different programming language, and then made minor cosmetic changes. The complaint describes the evidence as overwhelming, citing similarities in directory layout and developer pages between Dawn and Seed.
Shopline has been expanding rapidly, launching in Hong Kong, Taiwan, Southeast Asia, Australia, and the UK. The company has received investment from 500 Startups, Ardent Capital, and the Alibaba Hong Kong Entrepreneurs Fund. In 2022, Shopline was acquired by Joyy, a Chinese livestreaming platform, for $183M. This acquisition led to several departures among its Southeast Asia-based employees, including all country managers and co-founders.
The lawsuit between Shopify and Shopline could have significant implications for the ecommerce industry. If Shopify wins, it might deter other companies from copying technology. This case also highlights the importance of protecting intellectual property in a competitive market. The outcome could impact Shopline's operations, especially as it continues to expand internationally. The legal battle is closely watched by industry experts and competitors.
Should companies be more vigilant about IP theft?
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