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Shein, Temu gear up for 2026 UK trial over copyright and competition claims

investing.com 05/11/2024 - 12:09 PM

London Court Trial for Shein and Temu

LONDON (Reuters) – Online fast-fashion platforms Shein and Temu are gearing up for a 2026 trial at London's High Court, trading allegations of copyright infringement and anti-competitive behavior in competing lawsuits.

Background

Shein sued Temu in Britain last year, accusing Whaleco UK Limited, whose ultimate parent is Temu's owner PDD Holdings, of breach of copyright regarding photos of certain products available on Temu's platform.

Temu counterclaimed in February, alleging that Shein is violating British competition law by enforcing exclusive agreements with suppliers of fast-fashion products, a claim valued at £4.2 million ($5.5 million), which Shein denies.

Court Proceedings

Temu's lawyers argued in court documents during a preliminary hearing that Shein is "flooding Temu with unwarranted notices of copyright infringement, disrupting the sale of products." Both cases are expected to go to trial toward the end of 2026, according to Shein’s legal team.

Global Legal Battle

The London lawsuit is part of a broader global legal conflict between the two rivals. Temu filed a lawsuit against Shein in the U.S. in December, and Shein responded with its own case against Temu in August.

Market Expansion and Scrutiny

Both companies have rapidly expanded into international markets with low-cost clothing, accessories, and gadgets, though they face increasing scrutiny.

Shein has been questioned regarding its worker treatment and environmental record, especially with a potential London listing on the horizon. The company asserts its commitment to respecting human rights and maintains a zero-tolerance policy for forced labor.

Conversely, Temu is currently under investigation by the European Commission for potential breaches of regulations aimed at preventing the sale of illegal products and has stated its willingness to cooperate with regulators.




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