{"text":[[{"start":9.1,"text":"Fast-fashion group Shein has lost a UK copyright lawsuit against its arch rival Temu, in a case that had the potential to reshape online platforms’ legal responsibility over third-party merchants selling goods on their websites."}],[{"start":21.8,"text":"The judgment, handed down in London’s High Court on Thursday, rejected Shein’s claim that Temu perpetrated “industrial-scale” copyright violations by allowing merchants on its platform to advertise thousands of clothing items using photographs lifted from Shein’s website."}],[{"start":37.48,"text":"It also argued that Temu was not a passive intermediary but instead actively enabled vendors to misuse its copyrighted images."}],[{"start":45.52,"text":"In her ruling, Mrs Justice Bacon said that Temu “did not authorise copyright infringement by users of its website”, nor did it “know” or have “reason to believe” that the photographs of clothing at the heart of the case “infringed Shein’s copyright”."}],[{"start":59.88,"text":"Temu also won a counterclaim for damages against Shein over what it argued were wrongfully issued notices that forced it to remove product listings from Temu’s website — claims that Shein had disputed. The size of any damages award will be determined at a later trial."}],[{"start":75.68,"text":"The case, which is the latest episode in an international legal tussle between the two China-founded retailers, was a key test of online platforms’ legal responsibility over how vendors use their websites."}],[{"start":87.1,"text":"It hit at the centre of a broader debate around platforms’ liability for content posted by their users — one that has also played out in US courts in cases involving tech groups. In its defence, Temu argued that it operates as a neutral platform and that third-party merchants were responsible for posts on its website."}],[{"start":105.72,"text":"Shein has become a global retail powerhouse by pioneering a business model based on delivering clothes from Chinese factories directly to western consumers. After booming growth during the pandemic, Chinese group PDD Holdings launched Temu, which adopted a similar strategy to sell a broader range of unbranded goods."}],[{"start":124.56,"text":"Following Thursday’s ruling, Shein said it disagreed with the court’s “narrow interpretation of a complex and evolving area of law”. Temu declined to comment."}],[{"start":131.04,"text":"The case was narrowed down to a handful of samples, including a supplier selling a “Strawberry Nightdress” that was delisted from Shein due to poor sales and later posted on Temu with the same photos."}],[{"start":142.84,"text":"The judge wrote that Shein’s position on copyright ownership in relation to the dress had “changed significantly” during the case and the “end-result was a set of submissions of quite extraordinary complexity”."}],[{"start":143.34,"text":"Additional reporting by Alistair Gray"}],[{"start":158.86,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786680295_7343.mp3"}