Lululemon Athletica (NASDAQ: LULU) has filed a lawsuit against Costco Wholesale (NASDAQ: COST), accusing the retail giant of selling apparel that closely imitates Lululemon’s trademarked designs. The lawsuit, filed in a California federal court on Friday, claims that Costco unlawfully benefited from Lululemon’s brand reputation by offering “unauthorized and unlicensed apparel” that allegedly infringes on the company’s trade dress and design patents.
The complaint specifically mentions six products Costco sells— including a Kirkland Signature pair of pants and jackets and hoodies from brands like Jockey, Danskin, Hi-Tec and Spyder— that Lululemon says are “confusingly similar” to its own offerings. Although Costco reportedly pulled some items after receiving a complaint last November, others remain available.
Lululemon is seeking a jury trial and compensation for lost sales. The lawsuit also references media coverage by The Washington Post and Wirecutter, which highlighted consumer interest in “dupes” of premium brands like Lululemon.
At present, neither Lululemon nor Costco stocks appear to be affected by the legal action.
