[News Space=Reporter seungwon lee] A Korean court issued an arrest warrant for the CEO of eyewear brand Blue Elephant on February 13, 2026, recognizing the judicial significance of the intellectual property dispute with industry giant Gentle Monster.

This is seen as an unusually strong court response to the eyewear industry's chronic "copycat" practices. The prosecution, citing concerns about evidence destruction and the gravity of the case, requested and received approval for a second warrant on February 9th. The court had previously rejected the first request in November 2025, citing a lack of justification for detention. This time, the Daejeon District Court ruled that there was sufficient evidence to support the charges.

3D Scanning Proves Dead Copy Evidence

IICombined announced that 33 out of approximately 80 Blue Elephant products showed 95-99% similarity to Gentle Monster products in a 3D scanning analysis by an external expert agency. In particular, the similarity between the Gentle Monster 'JEFF' model released in August 2021 and the Blue Elephant product released in March 2023 reached 99.9441%, and lens compatibility was also confirmed. A Gentle Monster representative emphasized, "Even if the same technician produced it, it would be around 93%, but 99% is a direct copy."

Suspicions have spread beyond products to include store interiors and accessories. Blue Elephant's Myeongdong store (to open in 2024) bears similarities to Gentle Monster's Shanghai store (to open in 2021), and the design of its eyeglass pouch was also cited as having been registered two years later.

Low-cost rivals grow rapidly amid financial disparities

Founded in 2019, Blue Elephant saw its sales skyrocket from 2.4 billion won in 2021, 990 million won in 2022, and 5.76 billion won in 2023 to 30.01574 billion won in 2024, recording an operating profit margin of 42.7%. Meanwhile, IICombined, the parent company of Gentle Monster, founded in 2011 and famous for its celebrity clientele including Blackpink's Jennie, saw its annual sales nearly double from 410 billion won to 790 billion won over the past three years.

The court has already ordered a 7.8 billion won seizure of Blue Elephant's Seongsu and Hannam-dong properties, and IICombined estimates the total damage to be 20 billion won.

Blue Elephant's legal team stated that the case "depends on the structural characteristics of eyewear products, industry practices, and the scope of protection under the Unfair Competition Prevention Act," and announced that they would fight the case in court.

A signal of restructuring in the fashion IP market

This arrest is a case of strict application of the Unfair Competition Prevention Act, which prohibits unauthorized copying within three years of release, and is expected to put the brakes on indiscriminate imitation of 'cost-effective' brands targeting the MZ generation.

A fashion industry insider analyzed, "Gentle Monster's 'zero tolerance' principle could become standardized." This also increases the likelihood that Blue Elephant's US expansion plans will be disrupted.