Lululemon accuses Costco of selling knock-off versions of its $128 pants

The ongoing legal dispute between Lululemon and Costco exemplifies the complexities of intellectual property rights in the retail industry. Lululemon, a premium athletic apparel brand, has accused Costco of selling unauthorized versions of its products, particularly the $128 ABC pants . The lawsuit highlights significant design similarities between Lululemon's offerings and those sold under Costco's Kirkland brand at substantially lower prices. This situation raises questions regarding consumer perception and the potential for market confusion.

In a lawsuit filed Friday, Lululemon said Costco has “unlawfully traded” on the athleisure brand’s “reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions” of its products.

Specifically, the Vancouver-based athletic apparel maker says Costco’s private-label line Kirkland is selling similar pants, hoodies and jackets at a fraction of the price. The company accuses Costco of leading customers into believing that the Kirkland-branded “dupes are in fact manufactured by the authentic supplier of the ‘original’ products.”

Lululemon alleges these scenarios take advantage of patents it holds, as well as the reputation and goodwill it has built with customers.

In its 49-page court filing, Lululemon says it tried to address the dupes by sending Costco cease and desist letters but that it is now asking a court to step in.

A Lululemon spokesperson said in a statement to The Independent: “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.”

In their complaint filed in California, Lululemon asserts that such practices not only undermine its brand value but also mislead consumers into believing they are purchasing authentic products . For instance, a comparison reveals that while a Scuba hoodie retails for $118 at Lululemon, a similar item is available at Costco for just $8. Such stark price differences can detract from consumer trust and loyalty towards established brands .

Ultimately, Lululemon seeks financial damages and an injunction to prevent Costco from continuing these sales. This case underscores the importance of protecting brand integrity in an increasingly competitive marketplace where imitation can significantly impact consumer choices .

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Sara H

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