Shein has lost a High Court copyright case against rival Temu over the alleged use of its product photographs. The case centered on claims that Temu merchants used Shein’s own-brand clothing photographs to sell competing products.
The court rejected Shein’s argument that Temu was liable for the alleged infringements. Mrs Justice Kelyn Bacon ruled that Temu had not authorized merchants to breach Shein’s copyright.
Shein had accused Temu of infringing its copyright “on an industrial scale”. However, the judge found that even if copyright infringement had been established, Temu could have relied on a legal defence available to online hosting platforms.
Temu acted as an intermediary and did not have sufficient knowledge of any infringement by sellers using its site. This defence is available to online hosting platforms, and the judge ruled that Temu could have relied on it.
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Shein had initially alleged that Temu itself reproduced its photographs, but did not pursue that part of its case at trial. This decision was made because Temu’s servers are based outside the UK, and any reproduction took place beyond the country’s jurisdiction.
Shein maintained ownership of thousands of photographs that had appeared on Temu. However, the company criticized the legal interpretation that allowed its rival to avoid liability due to the location of its servers.
Temu did not immediately comment on the decision. The High Court also upheld a counterclaim from Temu seeking damages over product listings it had been forced to remove after Shein secured an injunction relating to images for which it did not own the copyright.
The ruling is the latest development in an ongoing global legal battle between the two ecommerce businesses. They have rapidly expanded internationally by offering low-cost fashion, accessories, and other goods.
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Shein is still pursuing a Hong Kong stock market listing that could value the company at around £22.2bn.
The UK dispute between Shein and Temu is not over yet, with Temu’s separate claim that Shein breached competition law due to go to trial in 2027.
Shein and Temu have expanded rapidly internationally, offering low-cost goods to a wide range of customers. Their business models rely on online marketplaces and the use of product photographs to sell goods.
For now, the focus will be on the upcoming trial in 2027, which will address Temu’s claim that Shein breached competition law.
