Lululemon Sues Costco

Lululemon Athletica, the yoga apparel giant, has once again filed a lawsuit against Costco Wholesale Corporation, alleging that the retailer is selling athletic wear that infringes upon Lululemon’s design patents and trade dress. This legal battle, reminiscent of a previous dispute between the two companies, underscores the fiercely competitive nature of the athletic apparel market and the lengths to which Lululemon will go to protect its brand identity.

The heart of Lululemon’s claim revolves around specific design patents for their popular Align leggings and Define jackets. These designs, characterized by their unique cut, seaming, and overall aesthetic, have become synonymous with Lululemon’s brand and a key driver of their success. Lululemon alleges that Costco’s activewear, specifically certain leggings and jackets sold under the brand name “Pointe Studio,” closely mimic these patented designs, causing consumer confusion and diluting the Lululemon brand.

Beyond patent infringement, the lawsuit also accuses Costco of trade dress infringement. Trade dress refers to the overall look and feel of a product – its shape, color, packaging, and other distinctive features that identify it as originating from a particular source. Lululemon argues that the combination of design elements used in Costco’s apparel creates a similar aesthetic to their own, potentially leading consumers to believe that the products are either made by or affiliated with Lululemon. This confusion, Lululemon claims, harms their brand reputation and sales.

This isn’t the first time Lululemon and Costco have locked horns in the courtroom. In 2012, Lululemon sued Costco over the sale of yoga pants that Lululemon claimed infringed on its “Astro Pant” design. That case was eventually settled out of court. The current lawsuit suggests that despite previous attempts to protect their intellectual property, Lululemon believes Costco is continuing to produce and sell infringing products.

Lululemon is seeking monetary damages, including lost profits and potentially enhanced damages for willful infringement. They are also requesting an injunction to prevent Costco from further manufacturing, selling, or distributing the allegedly infringing apparel. The outcome of the lawsuit remains uncertain. Costco is expected to vigorously defend itself, likely arguing that their apparel designs are sufficiently different from Lululemon’s to avoid infringement or that Lululemon’s patents are invalid.

This legal action highlights the importance of intellectual property protection in the fashion industry. Design patents and trade dress are valuable assets that companies use to differentiate themselves and protect their brand identity. As the athletic apparel market continues to grow and become increasingly competitive, companies like Lululemon are likely to remain vigilant in enforcing their intellectual property rights against alleged infringers.