Lululemon filed a lawsuit against Costco, charging that the warehouse club is selling “confusingly similar” replicas of its jackets, sweatshirts and pants.
In a lawsuit filed Friday, June 27, in the U.S. District Court for the Central District of California, Lululemon claims that certain Costco products imitate its designs so closely that it constitutes “trade dress” infringement, which occurs when a product mimics another so closely that it confuses consumers.
The lawsuit targets several Lululemon designs, including the Scuba Hoodies, Define Jackets, and ABC Pants, some of which the company alleges Costco sells under its in-house Kirkland Signature label, according to Reuters.
Other designs that LULU claims are direct copies and sold in Costco stores are manufactured by third-party brands, including Danskin, Jockey, and Spyder.
The lawsuit alleges that the lookalike products mislead customers and harm Lululemon’s reputation in the marketplace.
“Some customers incorrectly believe these infringing products are authentic Lululemon apparel,” the lawsuit states, “while still other customers specifically purchase the infringing products because they are difficult to distinguish from authentic Lululemon products, particularly for downstream purchasers or observers.”
Lululemon states that it previously issued cease-and-desist letters to Costco, but alleges that the retailer continued to sell the allegedly infringing items.
The brand is seeking a court order to prevent Costco from manufacturing, importing, advertising, and selling the alleged counterfeit products. It also wants Costco to pull all ads that promote the products and is asking for compensation for lost profits.
Lululemon has requested a jury trial.
Image courtesy Lululemon
