Shein, Temu Begin London Copyright Trial Over Product Photos

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, according to Bloomberg. 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.

Competing Claims and Defenses

Court filings show Temu denies the allegations and says merchants had consent to use the images. Temu argues Shein used copyright claims to curb legitimate competition.

Business Model Differences and Supplier Network Dispute

Shein works more like a retailer, using data to coordinate closely with suppliers, while Temu runs an online marketplace that links shoppers with thousands of manufacturers. 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.

Regulatory Environment and Market Growth

Both companies grew rapidly with help from an EU rule that waives import duties on packages worth less than 150 euros (US$180). The volume has surged: the EU imported about 4.6 billion low-value items in 2024, double the 2023 total.

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.

Broader Legal and Regulatory Pressure

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.

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. The dispute now reaches beyond these two firms, with pressure building on the direct-from-factory ecommerce model, which critics say can weaken product safety, labor standards, and fair competition in Western markets.