The legal battle between online fast-fashion rivals Shein and Temu has escalated with a two-week trial commencing at London's High Court on Monday. Shein has accused Temu of engaging in what it describes as “industrial scale” copyright infringement, alleging that the competitor used thousands of its photographs to advertise copies of Shein’s own-brand clothing. In response, Temu has countered that Shein is leveraging litigation to suppress competition rather than protect legitimate intellectual property rights.
Allegations of Unfair Advantage
Shein’s lawyer, Benet Brandreth, argued that Temu sought to “steal a march on an existing participant in the market” by obtaining an unfair advantage through the unauthorized use of Shein’s images. He told the court that Temu had dropped its defence concerning nearly 2,300 photos taken by Shein employees, likening this to “the defendant waiting to see if the witnesses will turn up, only to plead guilty.”
Temu's Counterclaims
Temu, which is owned by PDD Holdings, has filed a counterclaim seeking damages after it was forced to remove thousands of product listings when Shein obtained an injunction. Additionally, Temu alleges that Shein violated competition law by tying fast-fashion suppliers to exclusive agreements. This aspect of the case is scheduled for trial next year. Temu’s legal team argues that Shein’s lawsuit is not a legitimate attempt to halt copyright infringement but rather a strategic move to secure a competitive edge.
Global Legal Battles and Regulatory Scrutiny
The London trial is the latest in a series of legal confrontations between the two rivals, who have also sued each other in the United States. These disputes unfold amid increasing regulatory scrutiny of the fast-fashion industry. Both Shein and Temu have experienced rapid international expansion, offering low-cost clothing, accessories, and gadgets. However, the removal of a U.S. customs exemption on low-value e-commerce parcels last year, with the European Union set to follow in July, could potentially hinder their growth trajectory.
