Costco Wholesale Corp. has denied accusations from Lululemon Athletica Inc. that it infringed on the athleticwear company’s intellectual property by selling alleged knockoffs of its popular clothing.
Costco’s Defense
In a recent filing with a California court, Costco rejected claims that it copied Lululemon’s Scuba hoodies and sweatshirts, Define jackets, and ABC pants. The warehouse retailer argued it acted in good faith and that Lululemon is not entitled to any damages.
Some of the items flagged by Lululemon were reportedly sold under Costco’s Kirkland brand, while others were manufactured by Danskin, Jockey, and Spyder. Costco emphasized that it did not intentionally mislead customers or exploit Lululemon’s brand reputation.
The clash between the two companies began in June, when Lululemon alleged that Costco was profiting from its patents and long-established customer goodwill by selling lookalike apparel. Both sides have requested a jury trial to resolve the dispute.
Author’s Opinion
This lawsuit highlights the tension between affordability and brand exclusivity. Costco has built its reputation on offering lower-cost alternatives, often through private labels, while Lululemon thrives on prestige pricing and customer loyalty. Whether or not Costco overstepped legally, it shows how closely the lines can blur when cheaper options strongly resemble high-end designs. In the end, the case is as much about protecting Lululemon’s brand identity as it is about intellectual property law.
Featured image credit: Marco Tjokro via Unsplash
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