Chinese companies go to battle, as global fashion retailer ‘Shein’ sues the Chinese online shopping platform ‘Temu’, for trademark infringement amongst other accusations.
Chinese fashion behemoth Shein is suing is online business rival Temu over a range of charges including fraud, counterfeiting and intellectual property infringement.
Duelling Megastores
The duelling megastores have risen to global prominence over the last few years by offering lower priced products which are mainly produced in China.
Shein alleges that Temu has stolen its fashion designs, ironically as other fashion brands sue Shein for the same type of charges.
Companies that have also sued Shein include Victoria’s secret, Levi’s Strauss, H&M among other independent fashion designers.
Shein is owned by Roadget Business Pte. Ltd. while Temu is owned by PDD holdings, both are Chinese owned businesses.
In the lawsuit, Shein alleges that Temu “masquerades as a legitimate e-commerce ‘marketplace’ where independent sellers can offer their products for sale”.
Selling Counterfeit Products
However the lawsuit complaint says “facts” show the Shein controls all aspects of seller activity and “encourages [its sellers] to infringe the intellectual property rights of others.”
The lawsuit goes further to state that Temu profits for its subsidized sales to customers by selling counterfeit products which allow it to generate more revenues.
Impersonating the Fashion Retailer
In the complaint by Shein images provided as evidence in the lawsuit allegedly show Temu impersonating the fashion retailer by using copyrighted images found on their website and mobile app.
“The audacity is unbelievable. SHEIN, buried under its own mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for,” a Temu spokesperson said in a public statement.
Shein has requested a trial by jury rather than by trial judge in order for the most favourable outcome.
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Not the First Time
Jurors tend to be less concerned with technical details and more interested with listening to a compelling story.
Often Jurors make a decision based on who they believe should win under the circumstances rather than sticking to legalities.
This is not the first time Shein and Temu have faced off in legal battle regarding conflicting business operations.
Not been Without Criticism
Back in 2023, Temu sued Shein for accusations of “mafia-style” intimidation of merchants who do business with Temu.
While earlier in 2023, Shein sued Temu, accusing them of telling influencers to make fraudulent statements about Shein.
Both companies have not been without criticism as they utilized questionable business practices to grow faster than competitors.
Accusations include ties to the Chinese government, data collection without consent, unsafe working conditions, low worker pay, and selling banned items on its platforms.