Shein Loses UK Lawsuit Against Temu Over Copyright Violations

Shein lost a UK lawsuit against PDD Holdings Inc.’s Temu over allegations its rival engaged in large-scale copyright violations.

The Chinese-founded e-commerce giant must also compensate Temu for taking down thousands of product listings, according to a London court ruling published on Thursday. Shein had accused Temu at trial earlier this year of “astonishing” levels of copyright infringement and use of thousands of photographs from Shein’s website.

Temu counter sued, alleging that its rival waged an “aggressive and relentless battle.”

The ruling comes just ahead Shein’s planned Hong Kong initial public offering that’s targeting a valuation of about $30 billion. The London trial offered a rare glimpse into how Shein and Temu, founded by billionaires Xu Yangtian and Colin Huang, respectively, compete fiercely over shared suppliers and overlapping production networks.

The court will in a separate trial decide how much Shein must pay for forcing Temu to remove product listings. The UK’s antitrust court, the Competition Appeal Tribunal, is also set for another trial next year to decide on the allegation that Shein employed a deliberate strategy to undermine Temu’s ability to compete in the ultra-fast fashion market in the UK.

Temu didn’t immediately respond to requests for comment.

Shein’s ownership of the thousands of photographs at the core of the claim was not disputed and Temu avoided the liability “simply because the servers supporting its UK website happen to sit in Ireland,” Shein said following the ruling. “We do not believe that is the right outcome for brands and rights holders.”

Photograph: Clothing for sale at the opening of Shein Group Ltd.’s first permanent retail store at the Bazar de l’Hotel de Ville (BHV) department store in Paris, France, on Wednesday, Nov. 5, 2025; photo credit: Benjamin Girette/Bloomberg