Dive Brief:
- A federal judge has granted Shein an emergency temporary restraining order against rival Temu, which restricts Temu from “ongoing infringement” of registered trademarks and copyrights related to Shein, according to court documents.
- The restraining order was granted Monday as part of Shein’s lawsuit against Temu, which was filed late last year. In the suit, Shein attorneys argued that Temu was imitating Shein on social media and in web ads in order to trick customers into downloading the Temu app.
- The two companies are also involved in another legal case, in which Temu claimed Shein was violating antitrust laws in an alleged scheme to lock up its supply chain and prevent Temu from using some of its manufacturers.
Dive Insight:
The infringement case, filed last year in the U.S. District Court for the Northern District of Illinois, is between Roadget Business, which holds trademarks for Shein and its associated brands, and PDD Holdings, which operates and controls Temu platforms.
Shein requested the order on July 7, saying it had identified further evidence of Temu’s trademark misuse, per the filing. Shein attorneys claimed Shein’s marks were used on clothing designs, product labels and in images.
The restraining order will go into effect Aug. 3 if Shein posts a $10,000 bond as security, and it will remain in effect until Aug. 7.
Shein is pleased with the court’s order, a company spokesperson said in an email. Temu did not respond to Fashion Dive’s request ahead of press time.
In July, Temu filed a legal complaint against Shein. Attorneys for Temu said Shein “engaged in a campaign of threats, intimidation and false assertions of infringement” against Temu and assert that Shein engaged in bullying tactics to coerce manufacturers into avoiding business with Temu.
Both fast fashion companies are under investigation from U.S. lawmakers based on the company’s labor practices. Preliminary findings in that investigation found that Shein and Temu avoid certain tariffs due to the de minimis provision of the Tariff Act of 1930 which excludes packages valued at less than $800 from review. Lawmakers are trying to close this loophole.
