Lululemon Athletica Canada Inc. has filed a lawsuit accusing Costco Wholesale Corp. of infringing on its intellectual property by selling counterfeit versions of some of its best-known products.
The lawsuit, filed in a California court, alleges that Costco offers imitations of Lululemon’s Scuba hoodies, Define jackets, and ABC pants. Some of these alleged knockoffs are sold under Costco’s private label Kirkland, while others come from manufacturers such as Danskin, Jockey, and Spyder.
Claims of Consumer Confusion and Brand Damage
Lululemon asserts that some customers mistake these products for genuine Lululemon apparel, while others specifically buy the counterfeit items because they closely resemble authentic pieces. This, the company argues, harms its patents, reputation, and goodwill with customers.
Despite attempts to resolve the issue through cease and desist letters to Costco, Lululemon has now turned to the courts for intervention.
The 49-page filing requests a jury trial and demands that Costco stop manufacturing, importing, marketing, and selling the disputed products. Lululemon also seeks the removal of all advertisements for the alleged knockoffs, both online and in print, and compensation for lost profits related to these products.
Costco has yet to respond to the lawsuit or issue a public statement.
The Rise of Dupes and Consumer Behavior
Counterfeit products have surged in popularity as shoppers look for affordable alternatives amid inflation and trade uncertainties. Social media platforms have further fueled this trend, with users sharing their favorite dupes.
Lululemon, known for premium-priced athletic wear, has become a frequent target. Some consumers find its pricing prohibitive and opt for lookalikes.
Recently, Lululemon announced modest price increases on a limited range of products to offset tariffs, while focusing on regaining consumer interest by introducing fresher styles.
What The Author Thinks
This lawsuit highlights the ongoing tension between protecting brand identity and responding to shifting consumer demands. While affordable alternatives serve a market need, companies like Lululemon rely heavily on innovation and brand loyalty. The challenge lies in balancing fair competition with preventing direct copying that undermines years of brand building and intellectual property investments.
Featured image credit: ajay_suresh via Flickr
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