Shein sues fast-fashion competitor Temu for copyright infringement
Top line
Chinese fast-fashion giant Shein is suing its competitor Temu for copyright infringement. The retailer allegedly poses as an online marketplace by copying Shein’s products. Shein faces similar allegations from other brands and retailers.
Shein faces similar allegations from other brands and retailers, including Adidas and H&M.
Key data
In a lawsuit filed Monday in federal court in Washington, DC, Shein accused Temu – owned by PDD Holdings – of orchestrating a “coordinated conspiracy” of trade secret theft, product counterfeiting, trademark and copyright infringement and deceptive advertising.
At least one Temu employee stole “valuable trade secrets” from Shein that identified the company’s best-selling products. Temu then instructed sellers on its platform to sell “knockoffs” of them, Shein claims.
Shein claims that Temu “encourages” sellers to infringe intellectual property rights and prevents brands from removing their products from the Temu website.
Shein also claims that Temu “falsely” impersonated Shein by creating accounts on X (formerly known as Twitter) purporting to be Shein, and that Temu attempted to “redirect customers from the Shein platform to the Temu platform.”
Shein is seeking damages from Temu, to be determined in a jury trial, as well as reimbursement of attorney fees.
Temu did not immediately respond to a request for comment.
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Surprising fact
This is not the first time Shein and Temu have filed lawsuits against each other. Temu sued Shein in December for alleged “mafia-style intimidation” of manufacturers. Temu claims Shein has used increasingly aggressive tactics to “illegally interfere with Temu’s business,” including filing tens of thousands of unlawful copyright claims. That lawsuit is ongoing. Temu filed another lawsuit against Shein last July, accusing the company of antitrust violations for allegedly threatening and intimidating suppliers into not working with Temu. Last March, Shein sued Temu for allegedly making false statements about Shein when promoting its platform. Both lawsuits were dropped in October.
tangent
Other fashion brands and retailers have accused Shein of copyright infringement. H&M sued Shein last July, claiming Shein stole the company’s intellectual property and sold counterfeit products. Dr. Martens, Ralph Lauren, Levi Strauss, Puma and Adidas have filed similar lawsuits. Those lawsuits are ongoing.
Important background
Shein and Temu, two online retailers known for their low prices and extensive product catalog, have grown in popularity in recent years. Temu, whose owner PDD Holdings also runs Temu’s sister company, Chinese e-commerce platform Pinduoduo, launched in the U.S. in September. Temu reportedly claimed it could keep prices lower by “cutting out the middleman” by allowing Chinese vendors to sell and ship directly to American consumers. Shein, founded in 2008, became one of the world’s most popular clothing brands, generating $100 billion in revenue in 2022. The company has been criticized for selling products made in workshops with allegedly unsafe working conditions, including claims some required 17-hour days and pay cuts when products contained defects.
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