Lululemon Athletica has filed a lawsuit against Costco Wholesale, accusing the retail giant of selling cheaper imitations of its popular athleisure clothing items. The complaint, filed in the U.S. District Court for the Central District of California, alleges that Costco is infringing on Lululemon’s intellectual property by selling unauthorized products that closely resemble Lululemon’s signature designs. The Canadian athletic wear company claims these actions unlawfully trade on Lululemon’s established reputation and brand equity.
Lululemon Alleges Kirkland Branding Misleads Shoppers, Threatens Brand Integrity and Innovation
The lawsuit points to Costco’s practice of using manufacturers associated with well-known brands to produce its Kirkland Signature line. According to Lululemon, this strategy creates consumer confusion, as customers may mistakenly believe that Kirkland-branded items are produced by the same suppliers as premium brands. The suit argues that Costco does not make efforts to clarify these distinctions, thereby misleading shoppers into thinking Kirkland apparel could be made by or affiliated with Lululemon.
Lululemon Sues Costco Over Alleged Knockoff Apparel and Brand MisrepresentationLululemon emphasizes its commitment to innovation and the significant investment it makes in research, development, and product design. The company insists it must protect its intellectual property to preserve its brand’s integrity. In a statement, a spokesperson reaffirmed Lululemon’s stance on defending its rights when infringements occur, underscoring that the company does not take such legal measures lightly.
Lululemon Targets Costco Over Alleged Knockoffs and Major Price Discrepancies in Court
Among the items highlighted in the lawsuit are Costco’s Hi-Tec Men’s Scuba Full Zip jackets, which Lululemon claims mimic its Scuba hoodies and other signature products like Define jackets and ABC pants. The legal filing includes screenshots from Costco’s website showing the alleged knockoff product listed for $19.97, a stark contrast to Lululemon’s pricing, where similar items retail for over $100. This significant price difference adds to Lululemon’s argument that Costco is unfairly capitalizing on its premium brand image.
Lululemon is seeking a jury trial and is asking the court to compel Costco to halt the sale of the disputed products. Additionally, the company is pursuing unspecified monetary damages for the alleged infringement. Notably, this isn’t Lululemon’s first legal battle over intellectual property; the brand had a similar dispute with Peloton in 2021, which ultimately evolved into a five-year strategic partnership. Whether this new case leads to litigation or cooperation remains to be seen.
