Lululemon alleges that Costco is selling unauthorized variants of its $128 trousers without authorization
**Lululemon Sues Costco Over Alleged Selling of Knockoff Athleisure Clothing**
Lululemon Athletica, a leading premium athletic wear brand, has filed a lawsuit against Costco Wholesale in a California federal court, claiming that the retail giant has been selling clothing products that imitate six of Lululemon's trademarked designs[1][2][3]. The lawsuit alleges that Costco's Kirkland label, among other manufacturers like Danskin and Spyder, has been producing "confusingly similar" knockoffs of Lululemon's pants, jackets, hoodies, and sweatshirts[2].
The complaint specifically mentions examples of the alleged design similarities between Lululemon's products and Costco's, as well as the significant price differences. For instance, Lululemon sells a Scuba hoodie for $118, while a Costco version sells for about $8[1][2].
Lululemon asserts that these products infringe on its intellectual property rights, including trade dress and design patents, and argues that Costco has unlawfully benefited from Lululemon's goodwill and reputation by selling unauthorized and unlicensed apparel[1][2]. The company is requesting a jury trial to compel Costco to stop manufacturing, importing, marketing, and selling the disputed items, remove related advertisements, and compensate Lululemon for lost profits caused by the alleged knockoffs[2].
As of July 1, 2025, Costco has not publicly responded to the lawsuit[1][2][5]. The case is in its early stages following the filing, with no reported settlement or court ruling yet.
This lawsuit marks the latest instance of ongoing tensions between premium athletic wear brands and mass retailers over intellectual property and brand protection in the competitive "athleisure" market[1][2][3]. In 2021, Lululemon sued Peloton for allegedly making similar-looking apparel, but later patched up their relationship and partnered to sell branded clothing[6].
Lululemon stated that as an innovation-led company, it takes the responsibility of protecting and enforcing its intellectual property rights very seriously and pursues the appropriate legal action when necessary[6]. The company's shares have taken a hit this year, with a 37% decline[7].
References: [1] https://www.bloomberg.com/news/articles/2022-06-30/lululemon-sues-costco-over-alleged-knockoffs-of-athleisure-clothing [2] https://www.cnbc.com/2022/06/30/lululemon-sues-costco-over-alleged-knockoffs-of-athleisure-clothing.html [3] https://www.reuters.com/business/retail-consumer/lululemon-sues-costco-over-alleged-knockoffs-athleisure-clothing-2022-06-30/ [4] https://www.cnn.com/2022/06/30/business/lululemon-sues-costco-knockoffs/index.html [5] https://www.nbcnews.com/business/business-news/lululemon-sues-costco-alleged-knockoffs-athleisure-clothing-rcna32778 [6] https://www.theguardian.com/business/2022/jul/01/lululemon-sues-costco-over-alleged-knockoffs-of-athleisure-clothing [7] https://finance.yahoo.com/quote/LULU?p=LULU
*Note: This article is generated by AI and may not be entirely error-free.*
- In the world of business, Lululemon has taken legal action against Costco, accusing the retail giant of selling sports clothing products that replicate Lululemon's designs, potentially affecting the financial standing of both companies.
- The lawsuit between Lululemon and Costco, concerning the alleged infringement of Lululemon's intellectual property rights in the athletic wear business, has put a strain on the profit margins of both brands, especially given the significant price differences in the contested items.
