Lululemon sues Costco for selling 'dupes'

Lululemon sues Costco, accusing retailer of infringing on trademark and design patents.

Lululemon has filed a lawsuit against Costco Wholesale Corporation, accusing the retailer of selling unauthorized replicas of its popular apparel, alleging trademark infringement and unfair competition.

The suit, filed on June 27 in the U.S. District Court for the Central District of California, claims that Costco has unlawfully sold "knockoff" versions of Lululemon's SCUBA® hoodies, DEFINE® jackets, and ABC pants, which bear a striking resemblance to the athleisure giant’s original designs.

Lululemon argues that Costco’s products create confusion among consumers, who may mistakenly believe they are purchasing authentic Lululemon items. The company claims that Costco’s actions are part of a broader strategy to confuse customers into thinking these “dupes” are legitimate. “One of the purposes of selling ‘dupes’ is to confuse consumers at the point-of-sale and/or observers post-sale,” the complaint states.

The lawsuit highlights instances where Costco's products are nearly identical to Lululemon’s designs, with the company pointing to a New York Times article that noted how Costco’s items “looked almost identical” to Lululemon’s. Additionally, Lululemon claims that Costco used the name "Tidewater Teal" for one of its products, a color trademarked by the brand since 2019, further evidence of deliberate imitation.

The complaint also mentions specific items allegedly copied by Costco, including Danskin hoodies, Jockey yoga jackets, and Kirkland performance pants. Lululemon asserts that Costco’s actions have caused significant damage to its reputation and business, and it is seeking monetary damages as well as an injunction to stop the retailer from selling the infringing products.

In response, Lululemon emphasized its commitment to defending its intellectual property, stating, “As an innovation-led company that invests significantly in research, development, and design, we take the responsibility of protecting our rights seriously.”

Costco has not yet commented on the lawsuit.