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

Online fast-fashion platform Shein lost its lawsuit against rival Temu over alleged copyright infringement in a UK ruling on August 13, 2023. The decision could benefit other online marketplaces hosting third-party sellers. This ruling is part of the first round of legal proceedings between the two companies. Temu accused Shein of breaking competition law by tying suppliers to exclusive agreements, with the trial set for 2027.

Shein had accused Temu of copyright infringement on an industrial scale, claiming Temu used photos of Shein's own-brand clothing. However, Judge Kelyn Bacon rejected Shein's arguments and stated that, even if copyright infringement occurred, Temu would not be liable due to the hosting defense. Shein initially argued that Temu reproduced its photos, but did not pursue this angle during the trial as the infringement took place outside the UK.

The spokesperson for Shein noted that they owned the photos in question, which appeared on Temu's website. However, the judge ruled that Temu prohibited merchants from uploading infringing content and would have relied on the hosting defense if infringements had occurred.