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

LONDON, May 11 (Reuters) - Online fast-fashion platform Shein accused Temu of copyright infringement "on an industrial scale", while Temu countered that Shein is using ‌litigation to stifle competition, as a trial opened at London's High ‌Court on Monday.

The case is part of a global legal battle between the fast-growing rivals, with ​potential implications for platform practices, supplier relationships and the enforcement of intellectual property rights across global e-commerce.

Shein alleges Temu used thousands of its photos to advertise copies of Shein's own-brand clothing on its website, to "piggy-back" on a more established competitor.

"This was ‌an attempt to steal a ⁠march on an existing participant in the market and Temu has sought to obtain, we say, an unfair advantage," Shein's lawyer ⁠Benet Brandreth said.

TEMU COUNTER-CLAIM OVER REMOVED PRODUCTS

Brandreth told the court Temu has dropped its defence to Shein's copyright claims over nearly 2,300 photos taken by ​Shein ​employees, likening it to "the defendant waiting to ​see if the witnesses will turn ‌up, only to plead guilty".

Temu – owned by PDD Holdings – has counter-claimed, seeking damages after it had to remove thousands of product listings when Shein obtained an injunction.

It also alleges Shein broke competition law by tying fast-fashion suppliers to exclusive agreements. That part of the case is due to go to trial next year.

Temu's ‌lawyers argue Shein's lawsuit is not a ​legitimate attempt to stop copyright infringement, but is ​designed to secure a competitive ​advantage.

The two-week London trial is the latest legal battle between ‌the two rivals, which have also sued ​each other in ​the U.S., and comes amid intensifying regulatory scrutiny.

Shein and Temu have expanded rapidly in international markets with low-cost clothing, accessories and gadgets. But the ​removal of a U.S. customs ‌exemption on low-value e-commerce parcels last year – with the European Union ​set to follow in July – could weigh on growth.

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