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

In a landmark e-commerce ruling, UK online fast-fashion giant Shein lost its lawsuit against rival Temu for alleged copyright infringement, according to a report on August 13. The decision may benefit online marketplaces with third-party sellers, as stated by Shein's spokesperson. The case revolves around the first round of Shein and Temu's legal dispute in London.

Temu accused Shein of breaking competition law by tying suppliers to exclusive agreements, with the trial scheduled for the following year. Shein alleged that Temu infringed its copyright on an industrial scale, claiming that Temu used photos of Shein's own-brand clothing to capitalize on its established competitor. However, Judge Kelyn Bacon dismissed Shein's arguments, stating that even if infringement occurred, Temu would not be liable.

The judge also ruled that if there had been copyright infringement, Temu could have invoked the hosting defence, as it merely intermediates between sellers and consumers without knowledge of any infringement.