Legal Battle Brews as Lululemon Accuses Costco of Design Imitation
In a fresh twist in the retail world, luxury athletic brand Lululemon has brought a lawsuit against Costco, accusing the wholesale giant of copying its distinctive designs and selling them at a lower price point under the Kirkland Signature label.
Lululemon’s recent lawsuit filed on Friday argues that “given the success” of its apparel, “some companies have replicated or copied Plaintiffs’ proprietary apparel designs to create what are colloquially known in the fashion world as ‘knockoffs’ or ‘dupes.'” The lawsuit points out that these imitations create an “improper association” with Lululemon’s original products, further exemplified by the popular social media hashtag “LululemonDupes,” which directs users to reviews and sources of similar, more affordable items.
A Lululemon store in New York City on April 3. The brand has filed suit against Costco, accusing it of copying designs. Image credit: Michael M. Santiago/Getty Images
The lawsuit further claims that Costco is profiting from Lululemon’s “reputation, goodwill and sweat equity” by selling unlicensed apparel that allegedly infringes on Lululemon’s design patents. Lululemon emphasized its commitment to protecting its intellectual property rights, stating, “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.”
Despite repeated requests, Costco has yet to comment on the allegations.
Lululemon, originating from Vancouver, British Columbia, in 1998, has risen to prominence in the athletic apparel market, known for its high-priced items that often exceed $100. Last year, the company’s revenue surpassed $10 billion, underscoring its significant presence in the industry.
On the other hand, Costco, a membership-based powerhouse, is renowned for its Kirkland Signature brand, offering products that rival name brands at significantly reduced prices. In fiscal 2024, Costco reported revenues amounting to $254.5 billion.
This article was originally written by www.npr.org
