LONDON, Might 11 (Reuters) – On-line fast-fashion platform Shein accused Temu of copyright infringement “on an industrial scale”, whereas Temu countered that Shein is utilizing litigation to stifle competitors, as a trial opened at London’s Excessive Courtroom on Monday.
The case is a part of a worldwide authorized battle between the fast-growing rivals, with potential implications for platform practices, provider relationships and the enforcement of mental property rights throughout international e-commerce.
Shein alleges Temu used 1000’s of its images to promote copies of Shein’s own-brand clothes on its web site, to “piggy-back” on a extra established competitor.
“This was an try to steal a march on an current participant available in the market and Temu has sought to acquire, we are saying, an unfair benefit,” Shein’s lawyer Benet Brandreth mentioned.
Temu denies the allegations.
TEMU COUNTER-CLAIM OVER REMOVED PRODUCTS
Brandreth informed the court docket Temu has dropped its defence to Shein’s copyright claims over practically 2,300 images taken by Shein workers, likening it to “the defendant ready to see if the witnesses will flip up, solely to plead responsible”.
Temu – owned by PDD Holdings – has counter-claimed, searching for damages after it needed to take away 1000’s of product listings when Shein obtained an injunction.
It additionally alleges Shein broke competitors regulation by tying fast-fashion suppliers to unique agreements. That a part of the case is because of go to trial subsequent 12 months.
Temu’s attorneys argue Shein’s lawsuit is just not a official try to cease copyright infringement, however is designed to safe a aggressive benefit.
The 2-week London trial is the newest authorized battle between the 2 rivals, which have additionally sued one another in the U.S., and comes amid intensifying regulatory scrutiny.
Shein and Temu have expanded quickly in worldwide markets with low-cost clothes, equipment and devices. However the elimination of a U.S. customs exemption on low-value e-commerce parcels final 12 months – with the European Union set to observe in July – might weigh on development.
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(Reporting by Sam Tobin. Enhancing by Mark Potter)