Shein is suing Temu for counterfeiting and theft of trade secrets

The time has come for the return from vacations for Shein and Temu, the two fast fashion giants who in these days have resumed their legal battle one-on-one outside the courts. Months ago, Shein's parent company (Roadget Business Pte. Ltd) filed a lawsuit in an Illinois court, claiming that its business rival was guilty of trademark infringement, and now it is accusing Temu of another series of offenses. Roadget Business Pte. Ltd has filed a new lawsuit in a Columbia court accusing Temu of counterfeiting, theft of trade secrets, copyright infringement, and fraudulent misleading communication. Last December, the same issue arose with roles reversed, with Temu accusing Shein of “acting like a mafia” to hinder its rival's success in the States—with intimidation and kidnapping. In the accusations that Shein is now making against Temu, the company claims that the brand is not an e-commerce platform but rather a platform to “control every aspect of its sellers' business”.

In addition to alleging that Temu has “strategically copied” its intellectual property, Shein claims that Temu possesses social media accounts used to confuse consumers and has persuaded some influencers to make derogatory statements about Shein. To get closer to the company's secrets, the lawsuit continues, Temu allegedly “continuously directed and utilized unfair and unlawful means” including the acquisition of Shein’s suppliers and employees. Furthermore, the lawsuit explains that Temu follows the same business model as Pinduoduo, which is said to be a sister site to Temu, recognized in the United States as “a site for piracy and counterfeiting”. The accusations against the company are numerous, contained in an eighty-page document, reports The Fashion Law, and also include alleged illegality in the business system it operates: according to Shein, Temu hides behind the image of a marketplace to benefit from illegal activities. With sixteen counts, Shein is asking the court for punitive damages, the recovery of Temu's illicit profits, the prohibition of further violations, and other forms of compensation.