The case, now before the High Court in London, marks another chapter in the escalating global dispute between the e-commerce giants, both of which have rapidly transformed online retail with ultra-cheap clothing, accessories and lifestyle products.
Shein claims Temu unlawfully used thousands of its copyrighted photographs to market imitation versions of Shein-branded fashion items on Temu’s platform. According to court filings, the Singapore-headquartered retailer argues the alleged infringement was deliberate and aimed at exploiting Shein’s already established customer base.
Representing Shein in court, lawyer Benet Brandreth described the alleged conduct as a calculated business strategy designed to gain ground quickly in the competitive fast-fashion market.
“This was an attempt to steal a march on an existing participant in the market and Temu has sought to obtain, we say, an unfair advantage,” Brandreth told the court.
The lawyer further argued that Temu had effectively abandoned part of its defence concerning nearly 2,300 disputed images created by Shein employees. He compared the move to “the defendant waiting to see if the witnesses will turn up, only to plead guilty.”
Temu, however, has firmly denied the allegations and insists the lawsuit is less about protecting intellectual property and more about suppressing a fast-growing competitor.
The company, owned by PDD Holdings, has launched a counterclaim seeking compensation after it was forced to remove thousands of product listings following an injunction secured by Shein.
In addition, Temu accused Shein of engaging in anti-competitive practices by allegedly locking suppliers into exclusive manufacturing agreements. That aspect of the dispute is expected to proceed to trial next year.
Lawyers for Temu argued that Shein’s legal action is strategically motivated and intended to weaken competition in the booming low-cost e-commerce sector rather than genuinely address copyright concerns.
The trial, expected to last two weeks, is being closely watched across the global retail and technology industries because its outcome could influence how online marketplaces handle intellectual property disputes, supplier relationships and platform accountability.
The courtroom battle also comes at a difficult time for both companies as regulators in major markets increase scrutiny of fast-fashion imports and cross-border online retail practices.
Over the past few years, Shein and Temu have aggressively expanded into Europe, North America and other international markets by offering heavily discounted products directly to consumers. Their rapid growth has disrupted traditional retailers and reshaped shopping habits worldwide.
However, recent policy changes could challenge that momentum. The United States last year removed a customs exemption that allowed low-value e-commerce parcels to enter the country duty-free, a loophole heavily relied upon by Chinese-linked online retailers. The European Union is also preparing to implement similar measures from July, potentially increasing operational costs for platforms like Shein and Temu.
With lawsuits already ongoing between the two companies in the United States, the London proceedings are expected to deepen tensions in an increasingly fierce battle for dominance in the global fast-fashion market.