Shein sues Temu over copyright infringement, trade secret theft

From CNBC: 2024-08-21 08:20:27

Chinese fast-fashion company Shein is suing rival Temu for allegedly stealing designs and using counterfeiting, IP infringement, and fraud to build its business. Shein faces similar allegations from other brands. Temu is accused of encouraging sellers to steal designs and sell products at a loss to minimize massive losses. Both companies have faced criticism for their labor practices and alleged connections to the Chinese government.

Temu spokesperson criticizes Shein for fabricating allegations while facing their own IP lawsuits. Both e-tailers have disrupted the retail industry with low-priced products and quick trend responses. They have faced backlash for labor practices and alleged design theft. Both companies have taken each other to court with scandalous accusations. Temu previously sued Shein over copyright concerns.

Shein accuses Temu of illicit behavior, including stealing trade secrets to copy best-selling products and reproducing copyrighted images. Temu allegedly pretended to be Shein to misdirect consumers and instructed influencers to falsely claim their products are cheaper and of higher quality. Shein’s complaint includes examples of clothing designs allegedly copied by Temu. Shein is seeking a court ruling to protect its confidential information.



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