Lululemon is taking legal action against Costco, alleging the wholesale retailer is selling unauthorized imitations of its high-priced athletic wear under the Kirkland brand. The lawsuit, filed in federal court in California, accuses Costco of infringing on Lululemon’s trademark and design rights by distributing garments that closely resemble its original products at discounted prices.
The complaint mentions several Kirkland Signature items that Lululemon claims closely replicate its own, including jackets, hoodies, and leggings. According to the filing, the designs are “strikingly similar,” with one example highlighting a Kirkland hoodie sold for under $10 that resembles Lululemon’s $118 Scuba hoodie.
Lululemon contends that Costco has attempted to benefit from its reputation and brand recognition without permission, misleading consumers into believing the products are genuine or connected to the Lululemon brand.
The activewear brand is seeking monetary damages, the full amount of which has not been disclosed, and a court order to block further sales of the contested products.
The case adds to Lululemon’s history of enforcing its design rights. In 2021, the company brought a similar case against Peloton over apparel designs. That dispute was eventually resolved, and the two companies later entered into a branded partnership.
Costco has not issued a public response to the lawsuit.
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