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

Online fast-fashion retailer Shein has lost a copyright infringement lawsuit against rival marketplace Temu in a UK court, a ruling with potential implications for other e-commerce platforms that host third-party sellers. The decision comes as Shein seeks a valuation exceeding US$30 billion in a Hong Kong initial public offering.

The case is part of a broader legal dispute between the two companies. Temu contends Shein violated competition law by forcing suppliers into exclusive agreements, with the trial scheduled for the following year. Shein accused Temu of copyright infringement on a massive scale, alleging that the latter used photos of Shein's own-brand clothing to gain an advantage over a more established competitor.

However, Judge Kelyn Bacon rejected Shein's claims, stating that even if infringement occurred, Temu would not be held liable due to the servers hosting Temu's UK website being located in Ireland. Shein had initially argued that Temu copied its photos, but did not pursue this argument during the trial, as the infringement would have taken place outside the United Kingdom.

Despite the similarities in the photos, Shein maintains ownership of the thousands of images it sued over and asserts they appeared on Temu's website. The judge upheld Temu's counterclaim, seeking damages for Shein having to remove listings when Shein secured an injunction regarding images for which Shein did not hold the copyright.