Online fast-fashion platform Shein lost a London copyright lawsuit against rival Temu on Thursday over photographs used to promote some products.
The ruling comes as Shein seeks a valuation of between $30 billion and $40 billion through a Hong Kong initial public offering and marks the first round of the companies’ legal battle in London.
Thursday’s ruling dismissed Shein’s copyright infringement claims and upheld Temu’s counterclaim for damages arising from the removal of listings after Shein secured an injunction.
A Shein spokesperson said the company was surprised by the decision: "We do not believe that is the right outcome for brands and rights holders seeking to protect their copyright online."
Temu did not immediately respond to a request for comment.
At the start of the trial in May, Shein accused Temu of infringing its copyright "on an industrial scale", alleging that the rival platform used its photographs to advertise copies of Shein’s own-brand clothing and to "piggy-back" on a more established competitor.
Temu, owned by PDD Holdings, denied the allegations and argued that Shein was using litigation to stifle competition.
Temu’s separate counterclaim, which alleges that Shein broke competition law by tying fast-fashion suppliers to exclusive agreements, is due to go to trial next year.
Shein and Temu, which have rapidly expanded across international markets by selling low-cost clothing, accessories and gadgets, have also sued each other in the U.S.
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