Lululemon Sues Costco Over Alleged Athleisure ‘Dupes’ in High-Stakes IP Battle

Lululemon has initiated a lawsuit against wholesale giant Costco, alleging the retailer is selling unauthorized ‘dupes’ of its popular athleisure wear. The legal action, filed last Friday, escalates the ongoing debate around fashion look-alikes and intellectual property rights within the retail sector.

The lawsuit claims Costco is unlawfully trading on Lululemon’s brand reputation by offering lower-priced versions of its signature items, including Scuba hoodies, Define jackets, and ABC pants. Lululemon specifically cited Costco’s ‘Hi-Tec Men’s Scuba Full Zip,’ an item priced significantly below Lululemon’s original. This move comes amidst a surge in the ‘dupe’ phenomenon, largely fueled by social media influencers directing consumers to more affordable alternatives to high-end fashion.

While the legality of ‘dupes’ often remains ambiguous, legal experts note that such disputes can venture into complex territory, particularly concerning copyright and trademark infringement. Northeastern University law professor Alexandra Roberts expressed some skepticism about certain aspects of Lululemon’s claims, especially regarding the enforceability of design patents and ‘functional’ elements of apparel. However, Roberts also indicated that Lululemon’s argument regarding potential consumer confusion—particularly if shoppers believe Kirkland-branded products are sourced from original manufacturers—could be a plausible claim.

This isn’t Lululemon’s first foray into defending its designs; the company previously settled a similar dispute with Peloton in 2023. The current lawsuit against Costco underscores the growing challenge for premium brands to protect their intellectual property in a market increasingly influenced by affordable imitations. Costco has not yet publicly commented on the lawsuit.

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