KEY TAKEAWAYS
- Shein alleges Temu used thousands of Shein employee-generated photos to advertise copies of its own-brand clothing on Temu’s platform without authorisation.
- Temu has already dropped its defence on nearly 2,300 photographs taken by Shein employees, a concession Shein’s barrister described as akin to “the defendant waiting to see if the witnesses will turn up, only to plead guilty.”
- Temu, owned by PDD Holdings, has counter-claimed for damages after being forced to remove thousands of product listings following a Shein-obtained injunction.
- A separate competition law allegation, that Shein locked fast-fashion suppliers into exclusive agreements, is scheduled for a distinct trial next year.
London’s High Court became the latest arena in the global rivalry between Shein and Temu on 11 May 2026, as a two-week trial opened over allegations that Temu committed copyright infringement on a systematic scale. Shein’s barrister Benet Brandreth told the court that Temu used thousands of photographs created by Shein’s own employees to advertise replica clothing.
He described it as an attempt to “piggy-back” on a more established competitor and gain an unfair commercial advantage. Temu denied the broader allegations, arguing the lawsuit is not a genuine IP dispute but a strategy to hobble a fast-growing rival.
What Temu Already Conceded Before the Trial Began
The most striking development came before proceedings formally opened.
As Quartz confirmed, Temu stopped defending itself over nearly 2,300 photos involving Shein employees before the trial began, a move Brandreth said looked like admitting guilt only after all the witnesses were already ready to testify.
The broader claim covers significantly more images. The trial will determine the full scale of liability and the damages owed across the wider pool of photographs still in dispute.
Temu’s legal team acknowledged the withdrawn defence but argued the remaining allegations lack merit and are being used as competitive leverage rather than a genuine legal remedy.
The case is one of several high-profile confrontations between global platforms and UK courts in 2026.
Temu’s Counter-Claim and the Competition Law Dimension
Temu is not merely defending; it is pursuing its own damages.
As AOL confirmed, Temu filed a counter-claim arising from the thousands of product listings it was compelled to remove after Shein obtained a pre-trial injunction, arguing those removals caused direct and quantifiable commercial harm.
A separate accusation, that Shein allegedly forced fast-fashion suppliers into exclusive deals that may violate UK competition law, will not be part of this trial. Instead, it will be handled in a different case scheduled for 2027.
This legal friction is not an isolated retail dispute; it mirrors a broader UK judicial crackdown on tech-sector dominance.
Just as Temu challenges exclusivity in fast fashion, a massive £2.1 billion trial has been greenlit against Microsoft, alleging the tech giant used its licensing power to stifle competition and overcharge thousands of UK businesses for cloud services.
Trade Policy Headwinds Pressing on Both Platforms
The trial arrives at a commercially pressured moment for both companies.
As AOL confirmed, the removal of the US “de minimis” tax exemption on low-value parcels last year directly hit the pricing model that helped Shein and Temu stay competitive in Western markets.
The European Union is expected to introduce equivalent measures in July 2026, adding further cost pressure. Both platforms are fighting each other across multiple jurisdictions while also trying to justify their rapid growth as regulators take a closer look.
This defensive struggle is now complicated by recent US threats of a “big tariff” on the UK in retaliation for its digital services tax, a move that could further inflate costs for high-growth digital businesses caught in the transatlantic crossfire.
Source: Shein accuses Temu of ‘industrial scale’ copyright breaches in UK legal battle
