tiprankstipranks
Advertisement
Advertisement

SHEIN and Temu Copyright War Just Got Nasty With a High Court Showdown

Story Highlights
  • China-founded retail rivals, SHEIN and Temu, are now battling in a London court over claims of stolen product images. 
  • SHEIN says thousands of its staff-taken product photos were reused on Temu’s platform to promote copycat items.
SHEIN and Temu Copyright War Just Got Nasty With a High Court Showdown

Two of the world’s biggest fast fashion platforms, SHEIN and PDD Holdings’ (PDD) Temu, are facing off in an alleged copyright theft case at London’s Business and Property Courts. SHEIN claims Temu allowed thousands of third-party sellers to post product photos stolen from its website. Meanwhile, Temu has pushed back on the claims. The trial is set to run for two weeks under Mrs Justice Bacon, the presiding judge.

Claim 55% Off TipRanks

Forget margin or options. Here's how the pros trade AMZN

SHEIN Claims Temu Stole Nearly 2,300 Product Photos

SHEIN alleges that around 2,300 product photos taken by its staff were used to advertise copycat clothing on Temu’s platform. On May 11, the first day of the trial, SHEIN lawyer Benet Brandreth KC said Temu tried to gain an unfair edge by riding on the success of a more established rival. 

He also said the scale of image theft was “astonishing” and “industrial”, adding that many of the photos were slightly edited to hide where they came from. 

As a result, SHEIN is asking the court to order Temu to remove all disputed images and pay damages. Beyond the photos, it also wants the court to rule that Temu was not passive, but actively helped sellers exploit its copyrighted images.

Temu Fires Back, Calling Lawsuit a Competition Ploy

Temu denied the claims, with its lawyer, Charlotte May, arguing that the lawsuit was not about protecting creative work but rather about crushing fair competition. She also questioned whether SHEIN legally owns the images, citing missing paperwork with freelancers and photo agencies. 

May added that each set of photos cost about £2 to produce, making the overall value of the claim minimal. Temu also argued that third-party sellers are responsible for the posts, while it acts only as a neutral platform.

Temu has since dropped its defense against the photo claims entirely. It has instead filed a counterclaim for damages, citing losses from thousands of product listings it was forced to pull after SHEIN secured a court order.

What Is a Good Retail Stock to Invest In?

While SHEIN remains a private company, investors can consider public companies in the same retail market. According to the TipRanks Stocks Comparison Center, Wall Street analysts rate retail stocks such as Amazon (AMZN), Alibaba (BABA), Walmart (WMT), and Costco (COST) as Strong Buy. Based on their 12-month average price targets, AMZN has a projected upside of 27.01%, BABA’s is 34.07%, WMT’s is 9.53%, and COST’s is 9.72%.

Disclaimer & DisclosureReport an Issue

1