Lululemon accuses Costco of IP infringement in new lawsuit

Lululemon has filed a lawsuit against Costco Wholesale Corp. accusing the wholesale retailer of infringing on its intellectual property (IP). According to the Canadian sportswear giant, Costco is selling knockoffs of six of its signature products, including its Scuba hoodies and sweatshirts and ABC pants.

In the 49-page lawsuit, filed with a federal court in California and seen by multiple news outlets, some of the alleged dupes are being sold under Costco’s own label, Kirkland, while others are being made by manufacturers like Spyder, Hi-Tec and Danskin. Lululemon claims that the products sold by the retailer infringe on its own trademarked designs.

The filing reads: “Some customers incorrectly believe these infringing products are authentic Lululemon apparel while still other customers specifically purchase the infringing products because they are difficult to distinguish from authentic Lululemon products”.

The brand said that it had tried to tackle the issue initially through a cease and desist issued to Costco, however has now called for the court to step in and requested for the case to be heard by a jury.

In the complaint, Lululemon has asked for Costco to be required to cease manufacturing and selling the dupes, and remove any evidence of advertising for the products in question both online and in print. The brand is also seeking financial compensation for sales lost from the sale of the alleged dupes.

FashionUnited has contacted Costco with a request to comment.