Gentle Monster-Blue Elephant Design Dispute Tests Korea’s Fashion IP Rules

A legal battle between two South Korean eyewear brands is testing the reach of intellectual-property protection in the fashion industry, where product trends spread quickly and many designs are never formally registered.

IICOMBINED, the company behind premium eyewear label Gentle Monster, has accused fast-growing rival Blue Elephant of copying frame designs, packaging and store concepts. The dispute began with a criminal complaint in December 2024 and was followed by a civil lawsuit seeking an injunction and damages in October 2025.

The case is notable because prosecutors brought criminal charges over alleged copying of product designs that had not been registered. Prosecutors allege Blue Elephant sent photographs of Gentle Monster frames carrying Blue Elephant branding to overseas factories, then sold about 321,000 units across 51 imitation models between 2023 and mid-2025. The sales were valued at 12.3 billion won, or roughly $9 million.

Evidence commissioned by IICOMBINED included three-dimensional scans comparing the companies’ products. Prosecutors said 29 models matched at least 95 percent of contour lines, while 18 exceeded 99 percent. Blue Elephant founder Choi Jin-woo resigned as chief executive in February and was indicted by Daejeon prosecutors the following month. He was released on bail in July, and the first-instance criminal trial remains underway. Further witness hearings are scheduled for December and January.

Blue Elephant argues that investigators failed to account for the nature of eyewear design. The company says fashion brands commonly use trends and reference products, while the basic structure of glasses limits opportunities for distinctive forms. IICOMBINED counters that the dispute extends beyond individual frames to cases and retail spaces, and says stronger protection is necessary for the industry’s growth.

The conflict comes as both businesses expand abroad. Gentle Monster operates about 50 of its 86 stores outside Korea and plans to increase its global network to roughly 200 locations within three to five years. Its overseas revenue rose to 332.9 billion won last year, although total revenue declined 2.1 percent to 772.3 billion won.

Blue Elephant competes at a lower price point, selling frames for about 50,000 to 70,000 won compared with Gentle Monster’s typical range of 200,000 to 300,000 won. Its annual revenue jumped 69 percent to 50.7 billion won, while operating profit fell 74 percent to 3.3 billion won. Singapore-based Affirma Capital agreed in August to invest 100 billion won for a 25.8 percent stake, valuing Blue Elephant at around 400 billion won.

The court’s eventual decision could shape how Korean fashion companies protect unregistered designs while balancing competition, trend-following and brand identity.