Shein claims that Temu is engaged in large-scale copyright infringement.

      The two-week trial began on Monday. Shein's lawsuit includes approximately 2,300 product images; Temu has relinquished its defense regarding those images and is presenting anti-competition allegations in return.

      Shein has accused Temu of copyright violation on a significant scale as the trial commenced at London's High Court. Shein's lawyer, Benet Brandreth, informed the court that Temu has utilized around 2,300 product images created by Shein's staff to promote similar clothing on Temu's website.

      "This was an effort to gain an advantage over an existing market participant, and we assert that Temu has attempted to achieve an unfair edge," Brandreth stated.

      Temu has effectively given up its defense regarding the contested images, shifting the court's attention to issues of damages, injunctive relief, and the broader competition claims.

      Temu's counter-claim argues that Shein partakes in anti-competitive conduct by binding suppliers in exclusive manufacturing contracts that prevent those same workshops from selling to rival platforms.

      The hearings are taking place in the Business and Property Courts. The judge has allocated two weeks for evidence presentation, with a decision unlikely to be reached before late summer.

      This London case is part of an ongoing multi-jurisdictional legal conflict between the two Chinese-founded companies, who have also filed lawsuits against each other in the US, the EU, and Singapore.

      PDD Holdings, the parent company of Temu, is listed on Nasdaq, while Shein is in the process of preparing for a public listing, with plans oscillating between Hong Kong and London due to regulatory challenges.

      The dispute unfolds amid increasing regulatory scrutiny for both parties. The UK's Competition and Markets Authority has been investigating the companies for consumer protection and pricing transparency issues since 2024. Additionally, the Financial Conduct Authority is reviewing Shein’s IPO disclosures. The Trump administration took steps in February 2025 to eliminate the US de minimis exemption, which has been crucial to both companies' growth strategies in the U.S.

      Brandreth framed Shein’s business argument around the notion that Temu’s copying of images enabled them to produce complete product pages more quickly and economically than they could have otherwise achieved.

      Temu's counter-claim is asking the court to evaluate whether Shein's exclusive supplier agreements amount to a trade restraint under UK law and if they should be dismantled.

      Neither company provided additional comments outside of court on Monday.

      The hearing is ongoing. The case is being monitored by competition regulators in Brussels, Washington, and London, as well as by the banks of both companies in anticipation of Shein’s listing process.