Washington, D.C. — Fast-fashion retailer Shein has initiated a legal battle against its competitor Temu, accusing the online marketplace of copyright infringement. The lawsuit, filed on Monday in a federal court in Washington, D.C., alleges that Temu, owned by PDD Holdings, engaged in a “coordinated scheme” involving trade secret theft, counterfeiting, and other forms of intellectual property infringement.
Shein’s complaint claims that Temu employees illicitly obtained “valuable trade secrets” from Shein, including details about the company’s best-selling products. According to the lawsuit, Temu then instructed sellers on its platform to produce and market “knock-off versions” of these items.
The lawsuit further accuses Temu of actively encouraging sellers to infringe on intellectual property rights and obstructing efforts by brands to remove their products from Temu’s site. Additionally, Shein alleges that Temu has falsely impersonated Shein on social media platforms, such as X (formerly known as Twitter), with the intent to mislead customers and divert them to the Temu platform.
Shein is seeking damages, the amount of which will be determined through a jury trial, as well as attorney’s fees. Temu has yet to respond to the allegations publicly. The legal dispute highlights ongoing tensions in the fast-fashion industry, where issues of intellectual property and counterfeit goods are increasingly prominent.
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