PDD Holdings' Temu won a copyright lawsuit brought by rival Shein in the London High Court. Shein accused Temu of industrial-scale infringement involving thousands of photos used by third-party merchants.
The judge ruled Temu acts as an intermediary and did not authorize the copyright infringement by its users. This decision provides a significant legal precedent for online marketplaces that host third-party sellers.
Temu also won a counterclaim for damages against Shein for wrongfully forcing the removal of product listings. The court will determine the final compensation amount at a later date.