Lululemon Files Lawsuit Against Costco Over “Dupes”

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lululemon sues costco

Lululemon Athletica Canada Inc. has launched a legal battle against Costco Wholesale Corp., accusing the retail giant of infringing its intellectual property rights by selling imitation versions of its signature apparel.

lululemon sues costco

What Lululemon Claims
• In a case filed June 27 in the U.S. District Court for the Central District of California (Case No. 2:25-cv-05864), Lululemon alleges Costco is selling “knockoff” versions of its iconic Scuba hoodies, Define jackets, and ABC pants under its Kirkland brand and through third-party labels like Danskin, Jockey, and Spyder .
• According to the complaint, the designs are strikingly similar, leveraging Lululemon’s patented designs and registered trademarks—terms like “Scuba” and “Tidewater Teal”—in ways that could confuse consumers .
• Lululemon claims it previously sent cease-and-desist letters to Costco, which went unanswered, prompting this escalation to seek judicial relief .

Legal Aims
• Cease and Desist: Lululemon is requesting a court order to prohibit production, marketing, and sale of the contested products.
• Monetary Damages: The company is seeking unspecified financial compensation for lost profits and brand dilution .
• Jury Trial Demand: The complaint explicitly asks for a jury to hear the case .

Industry Context
“Dupes” have surged in popularity across fashion and beauty industries as consumers seek lower-cost alternatives that closely resemble premium brands. Lululemon, a prime target due to its high price points, views this as direct brand infringement .
• The action comes shortly after Lululemon announced small price hikes to offset tariffs, as it attempts to sustain fresh product releases and brand momentum .

What Costco Has Said
• As of now, Costco has not issued an official response, and its legal representation remains unreported .

FAQ

Q: On what grounds is Lululemon suing Costco?

A: Lululemon alleges infringement of design patents, trade dress, and trademark rights related to its Scuba hoodies, Define jackets, and ABC pants — including the use of protected terms like “Scuba” and colors such as “Tidewater Teal”.

Q: Which brands/products are under scrutiny?

A: The lawsuit highlights alleged knockoffs sold under Costco’s Kirkland Signature brand, as well as from Danskin, Jockey, and Spyder.

Q: What relief is Lululemon seeking?

A: Lululemon is asking the court to stop Costco from selling the disputed products, pay damages for lost revenue and brand dilution, and allow a jury trial to decide the outcome.

Q: Why is this happening now?

A: Lululemon claims Costco ignored multiple cease-and-desist letters sent over the past year, leaving legal action as the only option to protect its intellectual property.

Q: What are “Dupes”?

A: “Dupes” are inexpensive, look-alike versions of popular brand products. They’re especially common in fashion and beauty, often mimicking high-end brands at a lower price point.

This lawsuit serves as a compelling example of how aggressively premium brands are moving to protect their assets in an era of budget-friendly imitations.

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