Written by: Gabriella Fortugno & Delaney Helmke
Lululemon USA Inc. (“Lululemon”) recently took legal action against Costco Wholesale Corporation (“Costco”) in the U.S. District Court for the Central District of California, alleging that Costco sold replicas of Lululemon’s signature activewear (e.g., SCUBA™ hoodies, DEFINE JACKETS™, and ALIGN™ pants). The so-called “dupes” were sold under private labels such as Kirkland™, Danskin™, Jockey™, Spyder™, and HiTec™. This case is not just about lookalikes, rather, Lululemon claims Costco infringed multiple forms of intellectual property (IP).
What is a “Dupe”?
As outlined in our previous article, “dupes” generally aim to provide similar aesthetics or functionality as a luxury brand at a lower price. Lululemon has been on the receiving end of this “dupe culture” for over a decade, with many athleisure companies attempting to mimic the look, style, functionality, and aesthetic of Lululemon’s products at a fraction of the price. Although “dupes” (or knockoffs) may be appealing to some consumers, they often infringe trademarks, patents, copyright, and design rights.
Lululemon’s Case Against Costco
Lululemon alleges trademark and trade-dress infringement, arguing that some Kirkland™ items are visually similar such that there is a risk of confusing consumers into thinking that they are buying authentic Lululemon products. Lululemon specifically alleges unauthorized use of the SCUBA™ trademark (US Registration No. 4333759) and brand-specific colors such as “Tidewater Teal”. Lululemon also alleges the infringement of U.S. Design Patents, which protect ornamental aspects of items like the SCUBA™ hoodie (USPN D969,456) and the curvilinear stitching on the DEFINE JACKET™ (USPN D1,068,211).
The heart of Lululemon’s argument is that knockoffs do not just copy styles, but rather, they capitalize on its brand equity and design innovation. Lululemon claims that companies like Costco are intentionally causing consumer confusion, diluting its trademarks, and infringing patented designs. The lawsuit seeks injunctive relief, damages, and the destruction of infringing inventory.
Lululemon’s IP Strategy
Lululemon’s global IP portfolio is extensive. Their portfolio includes hundreds of trademarks for logos, product names (e.g., SCUBA™, DEFINE JACKET™, ALIGN™), and distinctive trade-dress elements. They also hold over 900 Design and Utility Patents across their core activewear lines globally. This comprehensive IP portfolio shows that Lululemon does not merely rely on branding; it leverages all forms of IP rights to defend its market position aggressively.
Their recent action against Costco fits within Lululemon’s broader IP enforcement strategy. Lululemon actively defends its IP across multiple legal fronts when it perceives that competitors are encroaching (e.g., its 2021 Peloton lawsuit and 2012 action against Calvin Klein).
Takeaways
This case is a reminder that “dupes” can easily cross the line into infringement of trademarks, trade-dress, copyright, or designs, which has serious legal consequences. If you are seeing “dupes” of your products in the market and wondering whether they are infringing your IP, call our experts today to evaluate your intellectual property protection and enforcement options!
