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The growing role of Intellectual Property in ultra-fast fashion

The legal dispute between Shein and Temu has once again brought the ultra-fast fashion industry into the spotlight. This time, the battle is unfolding before the High Court in London, where allegations of large-scale copyright infringement are raising important questions about intellectual property protection, platform responsibility, supplier relationships, and competition in the digital retail market.

 

The case reflects a broader transformation within the ultra-fast fashion sector. As companies compete not only on price and speed but also on technology, logistics, and market dominance, intellectual property rights have become increasingly valuable strategic assets.

 

According to court filings, Shein alleges that Temu used thousands of photographs originally created for Shein’s online store to advertise similar or identical products on its platform. The company argues that these images were part of significant investments in content creation, supply-chain management, supplier development, and product commercialization.

 

Shein claims that the alleged unauthorized use of these photographs enabled Temu and its merchants to benefit from investments made by its competitor, effectively leveraging Shein’s commercial efforts to promote competing products.

 

Temu has rejected the accusations, maintaining that the merchants operating on its platform had authorization to use the disputed images. The company further argues that the lawsuit represents an attempt to hinder lawful competition in the highly competitive ultra-fast fashion market.

 

In response, Temu has filed a counterclaim seeking damages related to the removal of thousands of product listings following a court injunction obtained by Shein.

 

The dispute highlights the growing importance of copyright protection in e-commerce. While fashion designs themselves often face limitations in copyright protection depending on the jurisdiction, photographs used in marketing campaigns are generally protected as copyrightable works.

 

For digital retailers, product photography represents far more than a simple visual asset. Images are often the result of substantial investments involving creative direction, production teams, editing processes, and branding strategies. As online shopping increasingly depends on visual presentation, the unauthorized use of these materials can have significant commercial consequences.

 

The case therefore serves as a reminder that intellectual property disputes in fashion are no longer limited to trademarks, trade dress, or design rights. Copyright protection has become an increasingly relevant tool for safeguarding digital assets and brand investments.

 

Beyond the copyright claims, the litigation offers a rare glimpse into the operational structures that support the ultra-fast fashion business model.

 

 

Both Shein and Temu have built extensive supplier ecosystems, particularly in China, allowing them to rapidly identify consumer trends and bring products to market at competitive prices. The dispute raises questions regarding supplier management, content ownership, authorization practices, and the extent of platform oversight over third-party merchants.

 

As online marketplaces continue to expand, courts and regulators are increasingly examining the responsibilities of platforms when intellectual property violations are allegedly committed by independent sellers operating within their ecosystems.

 

The proceedings in the United Kingdom are only one aspect of a broader international conflict between the two companies.

 

In the United States, Shein and Temu have also initiated legal actions against one another. Recent developments have led to the consolidation of certain claims into a single proceeding, while allegations involving copyright infringement, unfair competition, platform misconduct, and misuse of legal enforcement mechanisms remain under judicial review.

 

The existence of parallel disputes across multiple jurisdictions illustrates how intellectual property enforcement has become a central component of global competition strategies among digital retail platforms.

 

At the same time, both companies face increasing regulatory pressure in key international markets.

 

Changes to customs regulations, import procedures, and cross-border shipping rules in the United States and Europe are creating new challenges for business models that rely heavily on low-cost international deliveries. These regulatory developments may significantly affect the economic advantages that helped fuel the rapid growth of ultra-fast fashion platforms over the last decade.

 

As governments seek greater oversight of international e-commerce operations, compliance considerations are becoming as important as pricing and logistics in determining long-term competitiveness.

 

The dispute between Shein and Temu illustrates how competition within the ultra-fast fashion industry is evolving. What began as a race centered on speed, affordability, and product availability has expanded into a broader contest involving intellectual property rights, supplier relationships, platform governance, and regulatory compliance.

 

Regardless of the outcome, the litigation is likely to influence future discussions about copyright enforcement in online retail, the responsibilities of digital marketplaces, and the legal frameworks governing global fashion e-commerce. As the sector continues to grow, intellectual property will remain a critical factor shaping how companies protect their investments and compete in increasingly crowded digital marketplaces.

 

 

Author: Marília de Oliveira Fogaça, Thaís de Kássia R. Almeida Penteado and Cesar Peduti Filho, Peduti Advogados.

Source: Shein v. Temu: Copyright Claims, Supplier Tensions & the Business of Ultra-Fast Fashion + https://www.thefashionlaw.com/shein-v-temu-copyright-claims-supplier-tensions-the-business-of-ultra-fast-fashion/ 

 

 

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”

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