Fast-fashion giant Shein lost a London lawsuit against rival Temu on Thursday after a British court dismissed its copyright infringement claims over the use of photographs of Shein products, delivering a setback to the company as it prepares for a potential Hong Kong stock listing. The ruling marks the first major judgment in the London legal battle between the two fast-growing online retailers and comes as Shein targets a valuation of between $30 billion and $40 billion for its planned Hong Kong initial public offering. The court dismissed Shein’s claims that Temu infringed its copyrights and upheld a counterclaim brought by Temu seeking damages related to product listings that were removed after Shein secured an injunction. “We do not believe that is the right outcome for brands and rights holders seeking to protect their copyright online,” a Shein spokesperson said. The dispute centers on how the two companies use product imagery and compete for customers in the highly competitive global fast-fashion market.