US Court Dismisses Temu Antitrust, Trade Secret Claims Against Shein

A federal court in Washington, D.C. dismissed key antitrust and trade secret claims brought by Temu against ultra-fast-fashion rival Shein, ruling that the alleged anti-competitive conduct and trade secret misappropriation took place outside U.S. jurisdiction, specifically in China. However, the court allowed Temu's claims related to copyright and trademark infringement, including allegations that Shein submitted thousands of baseless Digital Millennium Copyright Act takedown requests to disrupt Temu's business and infringed on trademarks covering Temu's website and promotional mobile games. Temu accused Shein of using aggressive tactics to dominate the U.S. fast fashion market, including a "mafia-style" scheme to intimidate suppliers and abuse the U.S. legal system. While Judge Timothy Kelly rejected Temu's monopoly and trade secret allegations, he permitted the continuation of claims involving Shein's alleged abuse of intellectual property rights. Both companies, with Chinese origins, have rapidly expanded their presence in the U.S. market amid consumer demand for low-cost online shopping. The decision allows Temu to pursue its accusations of sham copyright complaints and trademark violations, even as the antitrust and trade secret lawsuits are curtailed.