Shein loses UK copyright lawsuit against rival Temu in key e-commerce ruling

Shein, a UK-based fast-fashion retailer, has lost its lawsuit against rival online marketplace Temu for alleged copyright infringement, according to a ruling issued on August 13. The verdict could potentially benefit online marketplaces that host third-party sellers. The case is part of a broader legal dispute between Shein and Temu, which has been expanding quickly in international markets with inexpensive clothing, accessories, and gadgets.

In the first phase of their legal battle, Shein accused Temu of infringing on its copyright by using its own-brand clothing photos on Temu's platform. However, Judge Kelyn Bacon dismissed Shein's arguments, stating that even if infringement had occurred, Temu would not be held liable since it is merely an intermediary and lacks knowledge of any infringement.

The judge also ruled in favor of Temu's counterclaim, which sought damages for having to remove listings after Shein obtained an injunction over images for which Shein did not own the copyright.