Shein loses UK copyright lawsuit against rival Temu - Morningstar

(Alliance News) - Online fast-fashion giant Shein lost a lawsuit against Chinese e-commerce platform Temu, after accusing its rival of breaching copyright on photographs of clothing, the High Court in London ruled Thursday. The dispute concerned product listings on Temu's UK site posted by third-party sellers, who were using photos taken by Shein employees, as well as images provided by agencies and suppliers. Judge Kelyn Bacon said in her ruling that "Temu did not know or have reason to believe that the photographs infringed Shein's copyright." Founded in China in 2012 and now based in Singapore, Shein is a leading player in "ultra-fast fashion", where companies are known for selling large volumes of lower-quality clothing at rock-bottom prices. Temu has grown at a blistering pace since its launch in Europe in 2023 thanks also to an aggressive low-price strategy. The ruling comes ahead of Shein's long-awaited initial public offering in Hong Kong, after its application won approval from China's market watchdog last month. Shein said its ownership of the thousands of photographs at the heart of the case was not disputed and said Temu escaped liability "simply because the servers supporting its UK website happen to sit in Ireland." Contacted by AFP, Temu did not immediately respond. The High Court also ruled that Temu may be entitled to compensation from Shein, with the possible amount to be determined at a later date. source: AFP Copyright 2026 Alliance News Ltd. All Rights Reserved. The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar. Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees. Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement. Plus, opportunities and risks in international stocks today. David Sekera, CFA, Michael Field, CFA, and Susan Dziubinski Aug 10, 2026 As a group, these stocks wiped out an estimated $217.2 billion in shareholder wealth over the past 10 years. Amy C. Arnott, CFA Aug 11, 2026 You could end retirement with 50% more wealth than you started with, says Stefan Sharkansky. Here’s why he thinks that’s a problem. Christine Benz Aug 9, 2026 The stocks of these high-quality companies look cheap today. Tori Brovet Aug 5, 2026 AMD, Sandisk, and Western Digital have fallen from recent highs, but investors should still be selective. David Sekera, CFA, Susan Dziubinski, and Jess Bebel Aug 11, 2026