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Athletic wear giant Lululemon has filed a lawsuit against wholesale retailer Costco, alleging the sale of knockoff athletic apparel. Lululemon claims Costco’s Kirkland Signature brand clothing too closely resembles its own Scuba hoodies, Define jackets, and ABC pants, leading consumers to believe they are purchasing authentic Lululemon products.
The 49-page lawsuit details the alleged similarities in design between the two brands, as well as the significant price discrepancies. For example, a Costco jacket, which Lululemon claims is a dupe of its Hi-Tec Men’s Scuba Full Zip jacket, sells for $19.97, while the Lululemon version retails for over $100. Many other Lululemon items also carry price tags exceeding $100.
Lululemon accuses Costco of “unlawfully trading” on its established brand reputation and design innovation. A company spokesperson stated, “As an innovation-led company that invests significantly in research, development, and design, we take the protection of our intellectual property rights very seriously and will pursue legal action when necessary.” The company seeks monetary damages for financial losses incurred due to the alleged knockoffs and has requested Costco cease selling the disputed items.
Costco has not yet issued a public response to the lawsuit. This is not Lululemon’s first legal battle over intellectual property. In 2021, the company sued Peloton in a similar dispute, which ultimately led to a five-year partnership between the two companies in 2023.