Source: CBS News

 

On June 27, 2025, Lululemon Athletica Inc., based in Vancouver, filed a lawsuit against Costco Wholesale Corporation in the Central District of California. In its legal action, Lululemon alleges that Costco has infringed its intellectual property rights, by selling products that imitate its clothing designs, specifically its pants, sweatshirts, and jackets from the athleisure line.

The 49-page lawsuit details that Costco has been marketing unauthorized versions of Lululemon products under its own Kirkland brand, at significantly lower prices. Lululemon asserts that Costco has “unlawfully traded” on the reputation and value of its brand by offering “dupes” that confuse consumers, who may believe that these products are manufactured by Lululemon’s original supplier.

Among the products at issue in the lawsuit are the “Scuba Hoodie,” “Define Jackets,” and “ABC Pants.” Lululemon claims that the design similarities between its products and those of Costco are evident, providing price examples to illustrate the differences, such as the fact that its “Scuba Hoodie” sells for $118 while Costco’s version is offered for approximately $8.

Lululemon also alleges that Costco has used terms and  color names protected by trademark rights in favor of the plaintiff, such as “Tidewater Teal,” to describe its products. The company seeks to recover financial losses through unspecified monetary damages and requests the court to order Costco to cease selling these products.

Costco has declined to comment on the lawsuit. However, Lululemon has stated that it takes the protection and enforcement of its intellectual property rights very seriously and pursues appropriate legal action when necessary.

The filing of this lawsuit is part of a broader context of intellectual property protection in the fashion industry, where companies must balance fair competition with the defense of their innovations and unique designs.