Lululemon Sues Costco Over Alleged Knockoff Athleisure Products

Lululemon is suing Costco complete trading knockoff versions of its celebrated athleisure wear, according to Lululemon’s lawsuit revenge successful nan U.S. District Court for nan Central District of California. The Canadian-American diversion apparel retailer claims that Costco’s products break Lululemon’s intelligence spot authorities and harm their estimation and goodwill. 

Lululemon says they person taken steps to region these products from nan marketplace by sending cease and desist letters to companies — including to Costco — that advertise aliases waste knockoffs.

Brand estimation and creation infringement

“Costco has unlawfully traded upon plaintiffs’ reputation, goodwill and sweat equity by trading unauthorized and unlicensed apparel employing knockoff, infringing versions of plaintiffs’ well-known waste and acquisition dress and creation patents (the ‘infringing products’) and to retrieve afloat for nan monetary damages and important harm to Lululemon’s brands and estimation caused by defendant,” Lululemon’s suit states.

Lululemon alleges that these Costco items infringe connected their creation authorities to 3 products: ABC pants, a men’s statement known for comfortableness and stretch; Define jackets, a fitted, diversion overgarment style; and Scuba zip-ups and hoodies, which are oversized sweatshirts.

Consumer disorder alleged

Lululemon claims that Costco is violating trademark laws and misleading customers into reasoning that nan Costco marque Kirkland “dupes” are really made by Lululemon itself aliases by nan aforesaid supplier. This could confuse customers and wounded Lululemon’s marque and reputation, nan athleisure institution claims.

“Indeed, 1 of nan purposes of trading ‘dupes’ is to confuse consumers astatine nan point-of-sale and/or observers post-sale into believing that nan ‘dupes’ are plaintiffs’ authentic products erstwhile they are not,” nan suit states.

Pricing comparison

In nan lawsuit, Lululemon points retired that its Scuba hoodie, which costs $118, has a very similar-looking type being sold astatine Costco for astir $20. This drastic value quality is being utilized by Lululemon to support its declare that Costco is copying its designs, perchance harming its marque by offering inexpensive lookalikes.

A institution spokesperson for Lululemon told CBS MoneyWatch, “We return nan work of protecting and enforcing our intelligence spot authorities very earnestly and prosecute nan due ineligible action erstwhile necessary.”

Seeking damages and assemblage trial

Lululemon is seeking monetary damages to compensate for mislaid sales, marque damage, aliases different financial harm and demanding a assemblage trial.

Costco has not yet publically commented connected nan lawsuit. In 2022, Lululemon reached a settlement successful its suit against Peloton concerning Peloton’s women’s apparel line.