Shein initiates a lawsuit against Temu for alleged copyright violations and fraudulent practices.
In the world of fast fashion, two major players, Shein and Temu, have found themselves embroiled in a legal battle that has been making headlines.
Shein, a global fashion retailer, has filed a lawsuit against Temu, accusing the e-commerce platform of counterfeiting, trade secret theft, intellectual property infringement, and fraud. The lawsuit alleges that Temu has strategically ripped off the Shein brand and tarnished its popularity by passing itself off as Shein.
Temu, on the other hand, denies these accusations, with a spokesperson calling them fabricated. The spokesperson claims that Shein is buried under IP lawsuits.
The complaint against Temu alleges that it is not a legitimate e-commerce marketplace for independent sellers, as it controls every aspect of its sellers' activity. Shein's attorneys argue that Temu poached Shein's resources, including its suppliers, resources, and employees, and paid social media influencers to claim that Temu products are cheaper and of higher quality than Shein's.
The infringement includes theft of trade secrets, trademarks, and copyrights, according to Shein's attorneys. Shein alleges that Temu created accounts on X (formerly Twitter), pretending to represent Shein by displaying counterfeit trademarks to misdirect customers from Shein to Temu.
Shein's complaint against Temu alleges continuous and illegal infringement of its rights, both directly and through suppliers controlled by Temu. This is the second time Shein has sued its fast fashion rival for allegedly imitating it on social media. Previously, in December 2022, Shein accused Temu of trying to trick users into downloading Temu's app or visiting its website, as well as using its copyrighted images.
Most lawsuits filed against Shein are over copyright infringement, many from independent designers, but some from established brands like H&M and Uniqlo. However, it's important to note that the article does not mention any lawsuits filed by Temu against brands besides Shein.
Both brands have faced class action lawsuits from consumers and regulatory pressure from lawmakers in the U.S. and EU. In December 2023, a separate lawsuit was filed against Temu by brands, alleging anti-competitive behavior, but the details of this lawsuit are not provided in the article.
Interestingly, Shein dropped a lawsuit against Temu in October 2023. On the same day, Temu also dismissed a separate lawsuit against Shein.
In a recent development, Temu sued Shein over anti-competitive behavior, alleging Shein tried to illegally interfere with its business by bullying suppliers. This case is ongoing.
The legal battle between Shein and Temu serves as a reminder of the complexities and competitiveness in the fast fashion industry. As the case progresses, it will be interesting to see how these allegations are addressed and resolved.
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