Lululemon files a lawsuit against Costco, accusing them of replicating their signature styles.
In a surprising turn of events, Lululemon Athletica Inc., a leading innovator in performance athletic wear, has filed a lawsuit against Costco Wholesale Corporation in the U.S. District Court for the Central District of California. The lawsuit alleges that Costco is selling replicas of Lululemon's popular jackets, sweatshirts, and pants, causing consumer confusion and harming Lululemon's reputation.
According to the lawsuit, Costco is selling "confusingly similar" products that mimic Lululemon's ABC Pants, Scuba Hoodies, and Define Jackets. The infringing products, which also include the Danskin Ladies Half-Zip Hoodie, Danskin Half-Zip Pullover, Jockey Ladies Yoga Jacket, Spyder Women's Yoga Jacket, Hi-Tec Men's Scuba Full Zip, and Kirkland 5 Pocket Performance Pant, are said to copy design elements such as fabric, seam shapes, and even colour names from Lululemon's popular items.
Lululemon prides itself on being a path-breaking apparel company that has set a new standard for performance athletic wear. As an innovation-led company, it invests significantly in the research, development, and design of its products. The company's construction techniques and strategic fits help it stand out to consumers. However, the lawsuit claims that Costco's products, by closely resembling Lululemon's, make it difficult for consumers to distinguish between the knockoffs and authentic Lululemon products.
Lululemon accuses Costco of trade dress infringement, a situation where a product mimics another so closely that it confuses consumers. The lawsuit seeks to stop Costco from selling these "dupes" and demands monetary damages for the harm caused. Lululemon is seeking damages in the form of lost profits and for Costco to cease the manufacturing and distribution of the accused products.
As of the time of filing, Costco had not responded to a request for comment from our MoneyWatch. Lululemon's reporter, Megan Cerullo, a New York-based reporter for MoneyWatch covering small business, workplace, health care, consumer spending, and personal finance topics, is following the story closely. She regularly appears on News 24/7 to discuss her reporting.
It is important to note that the prices of Lululemon's Scuba hoodie, Define jacket, and ABC pants are $118, $128, and $128 respectively, while the infringing Costco products are likely to be priced lower. Some customers believe the infringing Costco products are authentic Lululemon apparel, while others purchase them because they are difficult to distinguish from authentic Lululemon products.
Lululemon firmly defends its products and takes the responsibility of protecting and enforcing its intellectual property rights seriously. The company's reputation for quality and innovation is hard-earned and it aims to protect it vigorously. This lawsuit is a testament to Lululemon's commitment to upholding its standards and protecting its intellectual property.
[1] Lululemon Athletica Inc. v. Costco Wholesale Corporation, U.S. District Court for the Central District of California, Case No. 2:21-cv-08063. [2] Cerullo, M. (2021). Lululemon Sues Costco Over Alleged Copying of Popular Athletic Wear. MoneyWatch. [3] Lululemon Accuses Costco of Copying Its Popular Scuba Hoodies and Sweatshirts, Define Jackets, and ABC Stretch Pants. (2021). Retrieved from https://www.lululemon.com/news/lululemon-accuses-costco-of-copying-its-popular-scuba-hoodies-and-sweatshirts-define-jackets-and-abc-stretch-pants
- The finance sector may see significant shifts due to Lululemon's lawsuit against Costco, as damages for trade dress infringement could potentially impact both companies' financial standing.
- The business world is abuzz with the news of Lululemon's legal action against Costco, highlighting the importance of maintaining unique product designs and intellectual property rights in today's competitive marketplace.
- In the realm of health and wellness, this lawsuit serves as a reminder for businesses to prioritize quality and innovation, as Lululemon's commitment to these values continues to set industry standards.
