Shein accuses Temu of 'industrial scale' copyright breaches in UK legal battle

LONDON, May 11 (Reuters) - Online fast-fashion level Shein accused Temu of copyright infringement "on an concern scale", portion Temu countered that Shein is utilizing ‌litigation to stifle competition, arsenic a proceedings opened astatine London's High ‌Court connected Monday.

The lawsuit is portion of a planetary ineligible conflict betwixt the fast-growing rivals, with ​potential implications for level practices, supplier relationships and the enforcement of intelligence spot rights crossed planetary e-commerce.

Shein alleges Temu utilized thousands of its photos to advertise copies of Shein's own-brand covering connected its website, to "piggy-back" connected a much established competitor.

"This was ‌an effort to bargain a ⁠march connected an existing subordinate successful the marketplace and Temu has sought to obtain, we say, an unfair advantage," Shein's lawyer ⁠Benet Brandreth said.

Temu denies the allegations.

TEMU COUNTER-CLAIM OVER REMOVED PRODUCTS

Brandreth told the tribunal Temu has dropped its defence to Shein's copyright claims implicit astir 2,300 photos taken by ​Shein ​employees, likening it to "the suspect waiting to ​see if the witnesses volition crook ‌up, lone to plead guilty".

Temu – owned by PDD Holdings – has counter-claimed, seeking damages aft it had to region thousands of merchandise listings erstwhile Shein obtained an injunction.

It besides alleges Shein broke contention instrumentality by tying fast-fashion suppliers to exclusive agreements. That portion of the lawsuit is owed to spell to proceedings adjacent year.

Temu's ‌lawyers reason Shein's suit is not a ​legitimate effort to halt copyright infringement, but is ​designed to unafraid a competitory ​advantage.

The two-week London proceedings is the latest ineligible conflict betwixt ‌the 2 rivals, which person besides sued ​each different successful ​the U.S., and comes amid intensifying regulatory scrutiny.

Shein and Temu person expanded rapidly successful planetary markets with low-cost clothing, accessories and gadgets. But the ​removal of a U.S. customs ‌exemption connected low-value e-commerce parcels past twelvemonth – with the European Union ​set to travel successful July – could measurement connected growth.

($1 = 0.7358 pounds)

(Reporting ​by Sam Tobin. Editing by Mark Potter)