Shein loses UK copyright case against Temu - Fashion United

Chinese fast fashion giant Shein has lost a copyright battle against its rival Temu in a case centred on thousands of product photographs that Shein alleged had been used on Temu’s UK platform to promote copies of its own-brand clothing. At the start of the trial in May, Shein accused Temu of breaching its copyright “on an industrial scale” and using its images to “piggy-back” on a more established competitor. Temu denied the allegations and argued that Shein was using litigation to stifle competition. Judge Kelyn Bacon of the UK’s High Court rejected Shein’s copyright claims, finding that Temu had not authorised infringement by merchants using the photographs in question. She also found that Temu did not know, or have reason to believe, that the photographs infringed Shein’s copyright. The judge said Temu would have been able to rely on the “hosting defence” if infringement had been established as it was only an intermediary. Reviewing the case, Elise Cant, associate and trademark attorney at Marks & Clerk, said the decision “provides greater legal certainty for online marketplaces” where third-party sellers upload content. "However, the decision may make it more difficult for traditional retailers and rights holders to pursue infringement claims against marketplace operators where infringing product listings are uploaded by independent sellers, potentially shifting the focus of enforcement efforts towards the sellers themselves rather than the platforms that host their listings," Cant added. Cassandra Hill, partner in Mishcon de Reya’s IP Disputes group, said the “key takeaway” was that platform liability depends on “what the marketplace actually did in relation to the specific content in dispute”. Temu’s success was because it had not selected, edited, endorsed or promoted the photographs. The court also upheld Temu’s counterclaim for damages after Shein obtained an injunction requiring listings to be removed, including images for which Shein did not ultimately own the copyright. The amount of damages will be determined in due course. In response to the ruling, a Shein spokesperson told Reuters: “We do not believe that is the right outcome for brands and rights holders seeking to protect their copyright online.” The spokesperson also argued that Temu had avoided liability because its UK website was supported by servers in Ireland. The ruling is the first phase of a broader legal battle between the two fast fashion platforms, with Temu’s counterclaim alleging that Shein breached competition law by tying suppliers to exclusive agreements is due to go to trial next year. Email address Continue OR CONTINUE WITH Copyright Shein Temu