Lululemon is suing Costco in federal court, alleging that the retailer is selling unauthorized knock-offs of its apparel.
The lawsuit claims consumer confusion, arguing that the similarities between Lululemon’s premium products and Costco’s lower-priced items mislead shoppers into thinking they are buying authentic Lululemon merchandise at a discount.
Lululemon is seeking legal remedies, including a jury trial, monetary damages, and an injunction to halt the sale of the allegedly infringing products.
Lululemon has filed a lawsuit against Costco, claiming the retailer is selling clothing that is so similar to Lululemon apparel that it is misleading consumers into thinking they are buying its merchandise at discount prices.
While Costco sells clothing and other items at a discount, Lululemon apparel sells at a premium.
“Lululemon files this action as part of its intellectual property enforcement efforts directed to retailers who have chosen to copy rather than compete,” the complaint alleges.
“Costco has unlawfully traded upon Plaintiffs’ reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions of Plaintiffs’ well-known trade dress and design patents (the “Infringing Products”) and to recover fully for the monetary damages and significant harm to Lululemon’s brands and reputation caused by defendant.
The charges
The lawsuit, filed in the U.S. District Court for the Central District of California, accuses Costco of selling unauthorized replicas of Lululemon's popular apparel, such as the Scuba hoodies, Define jackets, and ABC pants. The clothing in question is sold using Costco's private label, Kirkland. Costco also sells activewear using third-party brands like Danskin, Jockey, and Spyder .
The suit claims that the similarities between their products and those sold by Costco are so close that consumers might be misled into believing they are purchasing genuine Lululemon items. Lulu said it has sent numerous cease-and-desist letters but the merchandise in question has remained on sale.
The suit asks for a jury trial, as well as an injunction to stop sales.
At the time of publication, Costco has not issued any public statements regarding the lawsuit and has yet to file a formal response in court.