Shein, Temu face off in London copyright trial

Shein and Temu, Chinese-founded ecommerce groups selling low-cost fashion, began a trial in London over rival copyright claims that could affect their shared supplier networks and competition with European retailers.

Shein sued Temu in 2023, alleging Temu used thousands of Shein product photos for identical or copied items.

Temu countersued in 2024, seeking damages for losses it said Shein caused.

Court filings show Temu denies the allegations, says merchants had consent to use the images.

It argues Shein used copyright claims to curb legitimate competition.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Different setups and an EU rule feed the rivalry

Shein works more like a retailer, using data to coordinate closely with suppliers. Temu runs an online marketplace that links shoppers with thousands of manufacturers 1.
That setup lets sellers on Temu, including some that may also supply Shein, list similar goods there. Shein argues Temu gains from the time and money it spent building its supplier network and training partners 2.
Both companies also grew fast with help from an EU rule that waives import duties on packages worth less than 150 euros (US$180) 3.
The volume has surged. The EU imported about 4.6 billion low-value items in 2024, double the 2023 total 3.

The court fight is one part of a wider push for market access

The UK case sits within a broader legal clash that also includes US lawsuits. Europe and the UK have become more important as both companies face trade and regulatory pressure in the US 4.
In May, Temu’s consumer spending in the US fell about 36% from a year earlier, while Shein’s dropped 13%. In the same period, Temu grew 63% in the EU and 38% in the UK. Shein rose 19% in the EU and 42% in the UK 4.
European officials are also moving outside the courts. They have proposed new customs fees and are advancing measures such as France’s anti-fast fashion bill, which would punish fast-fashion products for environmental harm 4.
The dispute now reaches beyond these two firms. Pressure is building on the direct-from-factory ecommerce model, which critics say can weaken product safety, labor standards, and fair competition in Western markets 1.