Chinese company Shein sued Temu
Chinese company Shein sued Temu, its U.S. competitor, for copying its designs.
Chinese fast fashion giant Shein sued Temu on Tuesday, August 20, for copying its designs, precisely the same thing it is accused of by well-known brands.
In this regard, Shein requested a jury trial to determine compensation for damages.
In this regard, Chinese company Shein sued Temu, as detailed in an 80-page lawsuit filed in a Washington DC court.
In detail, Shein accuses Temu of running a “scheme” of trade secret theft, counterfeiting, intellectual property infringement and misleading advertising to “infiltrate” the United States, and claims that its rival loses money on every purchase.
“Temu entices U.S. consumers to download and use its mobile app with the promise of extremely low prices, but Temu does not profit from the sale of those products, which are so cheap that it must subsidize each sale, losing money on each transaction,” Shein points out.
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Shein sued Temu: For copying designs
China’s Shein sued Temu saying it encourages sellers on its platform to infringe on each other’s intellectual property and sell counterfeit or low-quality products, that it controls the prices of those goods and also prevents them from being taken down if they are admitted to be copies.
Apart from that, it accuses its rival of “theft of secrets” by an employee, which allowed it to identify the best-selling products on Shein’s platform along with internal pricing information.
Ironically, Shein has been facing accusations for years of copying designs from well-known fashion brands such as H&M, Ralph Lauren, Adidas or Puma, as well as artists.
This is not the first time that Chinese e-commerce platforms have battled in the U.S. through their corporate parent companies, as late last year Temu already accused Shein of infringing its copyright and bullying its suppliers into exclusive deals.
