By Connor Hart
Lululemon Athletica has filed a lawsuit against Costco Wholesale, alleging that the warehouse-club chain is selling knockoff versions of its popular activewear through its Kirkland private-label brand.
Lululemon said Costco has unlawfully traded on its reputation, goodwill and sweat equity by selling apparel that mimics the look and feel of its products--including its Scuba hoodies and sweatshirts, Define jackets and ABC pants--at lower prices.
The Vancouver-based company said it has invested substantial effort and resources into developing high-performance products, and that the suit aims to protect its intellectual property from "retailers who have chosen to copy rather than compete."
"As an innovation-led company that invests significantly in the research, development and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary," a Lululemon spokesperson said.
The products in question are sold under Costco's Kirkland brand, which Lululemon said is known for using manufacturers that also produce popular branded products. The suit alleges that neither Costco nor its manufacturers make this connection clear to shoppers, leading some customers to believe that the Kirkland-branded products are made by the same manufacturers--or are in some way affiliated with--the original products.
Costco, which didn't immediately respond to a request for comment, doesn't dispel this ambiguity, Lululemon said.
The suit, filed last week in U.S. District Court for the Central District of California, seeks a jury trial, an order barring Costco from selling the allegedly infringing products and unspecified monetary damages.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
07-01-25 1042ET
