China-founded online shopping platform Shein lost a copyright infringement lawsuit against rival Temu filed in the UK.
Shein argued Temu violated its copyright "on a substantial scale," saying that the PDD-owned platform used photos of Shein merchandise to market its own.
"Temu could not have known that the identified photographs did in fact infringe Shein's copyright," Judge Kelyn Bacon said in her ruling, adding that Temu was only acting as an "intermediary" for hosting third-party merchandise.
Temu's rules disallow merchants from uploading photos that could violate copyright, Bacon said in her decision.
In an emailed statement to, Shein said it disagrees with the court's "narrow interpretation of a complex and evolving area of law."
"We do not believe that is the right outcome for brands and rights holders seeking to protect their copyright online."
Shein added that "there is no dispute" about its ownership of the "thousands of photographs" in its claim, saying Temu acknowledges itself that the images sold on its website belong to Shein.
Temu did not immediately respond to a request for comment.