Shein has lost a UK copyright lawsuit against its arch‑rival Temu, a case that could reshape online platforms’ legal responsibility over third‑party merchants.

The High Court in London rejected Shein’s claim that Temu perpetrated “industrial‑scale” copyright violations by allowing merchants to advertise thousands of clothing items using photographs lifted from Shein’s website. Mrs Justice Bacon said Temu was not a passive intermediary and had no reason to believe the images infringed Shein’s copyright.

Temu also won a counter‑claim for damages over wrongful removal notices that forced it to delete product listings. The case follows an international legal battle between the two China‑founded retailers, both built on direct‑to‑consumer models. PDD Holdings launched Temu to sell a broader range of unbranded goods.

After the ruling, Shein criticised the court’s narrow interpretation of a complex area of law. The damage award will be decided in a later trial, and the decision tests the broader debate over platform liability echoed in US courts.