London’s High Court began the trial on Monday (May 11) to hear a legal dispute between two Chinese fast fashion giants, which is expected to last for two weeks. Online fast fashion platform Shein accuses Temu of engaging in “industrial-scale” copyright infringement, while Temu counters that Shein is using litigation to stifle competition rather than protect intellectual property.
This case is part of a global legal battle between the two competitors, marking the latest confrontation following their battleground in the United States. The trial is expected to unveil the inner workings of the supply chain in the ultra-fast fashion sector.
Shein alleges that Temu used thousands of its official photos to promote counterfeit Shein products on its website. Benet Brandreth, Shein’s lawyer, pointed out that Temu attempted to exploit Shein’s investments in the supply chain and supplier training to gain unfair competitive advantage, stating that it was an attempt to seize the initiative from existing market participants.
Brandreth informed the court that Temu has abandoned defense against nearly 2,300 photos, vividly likening it to “the defendant waiting until the witnesses arrive before deciding to plead guilty”.
Temu, held by PDD Holdings, firmly denies the accusations. Temu’s lawyer, Charlotte May, argued that the case “has nothing to do with protecting intellectual creativity in the photos, but is purely a means by the plaintiff (Shein) to stifle legitimate competition”.
Temu’s lawyers stated that platform merchants have obtained the necessary authorization to use the relevant images. Temu has counter-sued, seeking compensation from Shein for the economic losses incurred due to thousands of products being forced to be removed as a result of a previous court injunction.
The London trial provides a rare glimpse into how Shein founded by Xu Yangtian and Temu founded by Colin Huang compete within a shared supplier and overlapping production network. The expansion of both companies is currently posing a threat to traditional retailers in Europe.
In addition, Temu also accuses Shein of violating competition law by signing exclusive agreements with suppliers. The court is expected to hold a separate trial next year regarding the competition law aspects.
This litigation marks the latest showdown between the two parties following their battleground in the United States. Currently, both companies face increasingly stringent regulations: the United States cancelled tariff exemptions for low-value e-commerce packages last year, and the European Union plans to follow suit in July this year. Such policy changes are expected to exert significant growth pressure on Shein and Temu, who rely on a low-cost model.
(This article referenced reports from Reuters and Bloomberg)