Overview
Lululemon has initiated a lawsuit against Costco, alleging the retailer is selling lower-priced copies of its flagship apparel, including pants and hoodies, that infringe on Lululemon’s patents and trade on its brand reputation.
Lululemon's Claims
- Lululemon accuses Costco of selling unauthorized apparel that closely mimics its patented designs.
- The lawsuit claims Costco benefits from Lululemon’s reputation and consumer goodwill by offering lookalike products under its Kirkland brand.
- Lululemon asserts that using similar manufacturers for Kirkland products creates confusion and misleads consumers into believing they are buying goods made by original suppliers.
- The brand emphasizes its commitment to protecting its innovation and intellectual property through judicial action.
Details of Alleged Infringement
- Products named include Lululemon’s Scuba hoodies, Define jackets, and ABC pants.
- Costco’s Hi-Tec Men’s Scuba Full Zip is cited in the lawsuit, sold at $19.97, compared to Lululemon items priced over $100.
- Lululemon asserts Costco does not clarify the lack of official partnership, contributing to consumer misunderstanding.
Legal and Business Context
- The lawsuit is filed in the U.S. District Court for the Central District of California.
- Lululemon is requesting a jury trial, an injunction to halt sales of the alleged dupes, and unspecified monetary damages.
- Costco had not responded to the allegations as of the publication date.
- Lululemon previously was in a dispute with Peloton in 2021, which was resolved with a five-year partnership announced two years later.
Decisions
- File lawsuit against Costco: Lululemon has chosen to pursue legal action over alleged patent and trade dress infringement.
- Request jury trial and cease sales: Lululemon seeks a jury trial and to stop Costco from selling the disputed products.
Action Items
- TBD – Costco Legal/PR: Provide a formal response to Lululemon's lawsuit.
- TBD – U.S. District Court: Schedule court dates and pre-trial proceedings for the case.