Costco, the operator of the wholesale club, is being sued by Lululemon for allegedly selling cheaper replicas of some of its well-known athleisure apparel.
According to Lululemon Athletica’s action, which was filed in the U.S. District Court for the Central District of California, Costco has sold unlicensed clothing that incorporates counterfeit, infringing versions of its patents, illegally trading on its goodwill, reputation, and sweat equity.
According to Lululemon, Costco is known to partner with producers of well-known brands for its private label Kirkland brand, but neither the firm nor the manufacturers disclose this relationship to customers for a large number of the Kirkland-branded goods. According to Lululemon, this makes at least some consumers think that Kirkland-branded goods are produced by the genuine source of the original goods. According to Lululemon, Costco doesn’t make an effort to clear up any confusion.
According to a statement from a Lululemon company spokesperson, “We take the responsibility of protecting and enforcing our intellectual property rights very seriously as an innovation-led company that invests significantly in the research, development, and design of our products. When necessary, we pursue the appropriate legal action.”
The well-known Scuba sweatshirts, Define jackets, and ABC pants are among the items that Lululemon claims Costco is copying.
According to Lululemon, the Hi-Tec Men’s Scuba Full Zip is one of the copies that Costco offers; the lawsuit includes a snapshot of Costco’s website that shows the item’s $19.97 pricing. A few of the men’s jackets that Lululemon sells cost over $100 each.
A request for comment on Tuesday was not immediately answered by Costco, which is headquartered in Issaquah, Washington.
Lululemon wants Costco to cease selling the items it believes are duplicates and is asking for a jury trial. Additionally, it is requesting an undisclosed sum in monetary damages.
In 2021, Lululemon and Peloton were involved in a similar court battle. Two years later, the firms established a five-year relationship in which Lululemon became Peloton’s main partner for sports wear.
