Shein files lawsuit against Temu for copyright infringement and trade secret theft

Is Shein Suing Temu for Stealing Designs?

Shein and Temu, two fast-fashion giants, are locked in a legal battle over allegations of design theft and intellectual property infringement. Shein has filed a lawsuit against Temu, claiming that the rival company has built its success by stealing designs, counterfeiting goods, and engaging in fraudulent practices.

In a complaint filed in Washington, D.C., federal court, Shein accuses Temu, owned by PDD Holdings, of masquerading as a legitimate online marketplace while encouraging sellers to infringe on other brands’ designs. The lawsuit also alleges that Temu sells products at extremely low prices, subsidizing each sale and causing significant losses.

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Both Shein and Temu have faced criticism for their labor practices, connections to the Chinese government, and alleged use of other brands’ designs. The lawsuit highlights the cutthroat competition between the two e-tailers, with each accusing the other of illicit behavior.

Shein claims that Temu has unlawfully obtained trade secrets and pricing information to copy and sell knock-off versions of Shein products. The complaint also accuses Temu of using copyrighted images of Shein products to promote counterfeit versions on its platform.

Furthermore, Shein alleges that Temu has engaged in deceptive practices, including falsely pretending to be Shein on social media and instructing social media influencers to mislead consumers about the quality and pricing of Temu’s products compared to Shein’s.

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The lawsuit includes evidence of more than a dozen instances where Temu allegedly copied Shein’s designs. Shein is seeking a court order to prohibit Temu from using its confidential information and other relief measures.

As the legal battle unfolds, the retail industry is closely watching the outcome of this high-stakes dispute between Shein and Temu. Stay tuned for more updates on this evolving story on Extreme Investor Network.

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