Lululemon Sues Costco Over 'Dupes'

Lululemon has filed a lawsuit against Costco in the U.S. District Court for the Central District of California, accusing the retailer of intellectual property infringement. Lululemon alleges that Costco is selling 'dupes' or knockoff versions of its popular athleisure wear, including Scuba hoodies, Define jackets, and ABC pants, under its Costco private label and other brands like Danskin, Jockey International, Spyder Active Sports, and Hi-Tec. Lululemon claims that Costco has unlawfully traded on its reputation and goodwill, leading consumers to believe the 'dupes' are authentic Lululemon products or are difficult to distinguish from them. Lululemon is seeking monetary damages, including lost profits, and a court order to stop Costco from manufacturing, importing, marketing, and selling the alleged infringing products. Costco has not yet responded to the lawsuit, but Lululemon previously had a similar dispute with Peloton Interactive, which later resulted in a partnership.