Lululemon has filed a lawsuit against Costco, accusing the wholesale giant of selling low-cost “dupes” of some of its most popular athleisure items.
In a complaint filed with the U.S. District Court for the Central District of California, Lululemon Athletica claims Costco has “unlawfully traded” on its reputation, goodwill, and design efforts by offering unauthorized and unlicensed apparel that allegedly infringes on its patents.
According to the suit, Lululemon alleges Costco frequently sources products from manufacturers tied to well-known brands for its Kirkland private label. However, the company and manufacturers often don’t disclose that connection to consumers. Lululemon argues this omission misleads some shoppers into thinking Kirkland-branded items are made by the original creators. The company contends that Costco makes no effort to clarify the difference.
“As an innovation-led company that invests significantly in the research, development, and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary,” a Lululemon spokesperson said in a statement.
Among the items Lululemon says are being duplicated are its well-known Scuba hoodies, Define jackets, and ABC pants.
One specific example cited in the lawsuit is the Hi-Tec Men’s Scuba Full Zip, featured on Costco’s website for $19.97. Lululemon, by comparison, sells men’s jackets that can exceed $100.
Costco, headquartered in Issaquah, Washington, did not immediately respond to a request for comment Tuesday.
Lululemon is asking for a jury trial and is seeking to have Costco barred from selling what it views as copycat products. It is also pursuing monetary damages, though the exact amount is unspecified.
The lawsuit claims the following Costco products infringe upon Lululemon’s apparel patents:
- 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
- Kirkland 5 Pocket Performance Pant
The Canadian athleticwear brand was previously involved in a similar dispute with Peloton in 2021. That conflict ultimately ended in a five-year partnership agreement, with Lululemon becoming Peloton’s primary athletic apparel partner.
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