lululemon Sues Costco, Claims Company is Selling Product ‘Dupes’
lululemon has filed a lawsuit against Costco that accuses the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure clothing, reports CNBC. lululemon athletica claims in its lawsuit filed in the U.S. District Court for the Central District of California that Costco has “unlawfully traded” on its reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel that uses knockoff, infringing versions of its patents. Some of the products lululemon says Costco is making duplicates of include its popular Scuba hoodies, Define jackets, and ABC pants.
lululemon alleges that Costco is known to use manufacturers of popular branded products for its private label Kirkland brand, but that the company and the manufacturers don’t tell consumers of the connection between them for many of the Kirkland-branded products. Because of this, lululemon claims this leads at least some shoppers to believe that Kirkland-branded products are made by the authentic supplier of the “original” products. lululemon claims Costco doesn’t try to dispel the ambiguity.
Total Retail's Take: Product dupes are a longstanding issue in the retail sector, with the latest tiff occurring between lululemon and Costco. lululemon is requesting a jury trial and wants Costco to stop selling the products that it considers to be duplicates. It's also seeking an unspecified amount in monetary damages.
“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 company spokesperson said in a statement.
lululemon was in a similar legal dispute with Peloton in 2021. Two years later the companies announced a five-year partnership that included lululemon becoming the primary athletic apparel partner to Peloton. These cases demonstrate the ongoing legal battles surrounding the production and promotion of "dupe" products, with brands attempting to protect their intellectual property and consumers potentially seeking more affordable alternatives. The outcome of these cases could have significant implications for the future of the "dupe" market and how brands navigate the legal landscape surrounding lookalike products.
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Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
