The dispute concerned product listings posted on Temu's UK site by third-party sellers, who were using photos taken by Shein employees as well as images provided by agencies and suppliers.

Judge Kelyn Bacon said in her ruling that "Temu did not know or have reason to believe that the photographs infringed Shein's copyright."

Founded in China in 2012 and now based in Singapore, Shein is a leading player in "ultra-fast fashion", where companies are known for selling large volumes of lower-quality clothing at rock-bottom prices.

Temu has grown at a blistering pace since its launch in Europe in 2023 thanks also to an aggressive low-price strategy.

The ruling comes ahead of Shein's long-awaited initial public offering in Hong Kong, after its application won approval from China's market watchdog last month.

Shein said its ownership of the thousands of photographs at the heart of the case was not disputed and said Temu escaped liability "simply because the servers supporting its UK website happen to sit in Ireland."

Contacted by AFP, Temu did not immediately respond.

The High Court also ruled that Temu may be entitled to compensation from Shein, with the possible amount to be determined at a later date.