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In a nutshell: "You artist are not famous enough, so we, big co, are okay to blatantly rip your designs off"...
I think Zara's intimidation tactics are despicable.

That being said, and as I have written elsewhere, I am not so black-and-white on copyright and IP.

A lot of people called for the end to old business models of copyright and IP rights when it comes to 'greedy' music studios, Hollywood movies, and other IP vehicles.

Then in reverse logic, they think an indie artist has copyright or IP rights. I understand the emotion of the individual against the big bully corporation, but I am still personally struggling with the morality of copying or buying a pirated DVD, and turning around and saying she deserves her share due to those same laws many others violate.

How does that work ethically?

Most likely it was a low-paid designer out of thousands who copied the work off the internet, who will now lose their job, Zara will be fine.