On Aug. 13, fast-fashion e-commerce platform Shein lost a lawsuit in London against its rival Temu, which had accused Temu of copyright infringement over the use of photos depicting certain Shein products.
The ruling found that Shein's copyright infringement claims were unsustainable and upheld Temu's counterclaim—which demands compensation for losses incurred after being forced to take down product listings due to an injunction Shein had obtained.
NTD has reached out to both Shein and Temu for comment.
Fast-fashion rivals Shein and Temu locked horns in their latest legal battle at London’s High Court in May, with Temu accusing its competitor of weaponizing litigation to stifle competition.
Shein alleges that Temu permitted third-party merchants to pull thousands of product photos from its website to promote knock-off apparel, accusing Temu of "piggybacking" on its established brand. The fast-fashion giant contends that Temu actively facilitated this copyright infringement rather than acting as a neutral host.
Temu denies the allegations, maintaining that liability rests entirely with independent sellers. Furthermore, the marketplace argues that Shein’s lawsuit is an anti-competitive maneuver designed to curb a fast-growing rival rather than a genuine defense of creative rights.
The judge also ruled that if there had been copyright infringement, Temu could have relied on the so-called hosting defence because it was only an "intermediary" and did not have the requisite knowledge of any infringement.
"In so far as any infringements could be established in this case, Temu did not have either actual knowledge of the infringements or awareness of facts or circumstances from which the infringements would have been apparent," Bacon said.
She also upheld Temu's counterclaim, which sought damages for having to remove listings when Shein obtained an injunction in relation to images for which Shein did not own the copyright.
The two parties have previously filed lawsuits against each other in the United States as well.
Another counterclaim brought by Temu—accusing Shein of violating competition law by locking fast-fashion suppliers into exclusive agreements—is expected to go to trial next year.
This dispute comes at a time when both companies are expanding rapidly in international markets within the ultra-low-cost fashion and general merchandise sectors, even as they face increasing pushback in Europe and the United States.
Shein built its global influence through a direct-from-factory model and is currently planning an initial public offering (IPO) in Hong Kong at a valuation exceeding $30 billion. Meanwhile, Temu, backed by PDD Holdings, has expanded at breakneck speed with a broader product offering.
However, both Shein and Temu face increasingly strict regulatory scrutiny in the U.S. and Europe. The United States eliminated tariff exemptions on low-value e-commerce parcels last year, while the European Union began levying customs handling fees per product category on cross-border e-commerce parcels originating from non-EU countries on July 1.