Why Lululemon Is Suing Costco for Trademark Infringement
Lululemon is suing Costco for trademark and patent infringement, alleging that Costco is selling unauthorized, lower-priced duplicates of Lululemon’s athleisure products, misleading consumers and unlawfully profiting off Lululemon’s brand reputation.
The Case at a Glance
Case Name: Lululemon Athletica Canada Inc. v. Costco Wholesale Corp.
Court: U.S. District Court for the Central District of California
Case No.: 2:25-cv-05864
Filed by: Lululemon Athletica Canada Inc.
Defendant: Costco Wholesale Corp.
What Is Lululemon Accusing Costco Of?
Lululemon claims Costco has “unlawfully traded on its reputation, goodwill, and sweat equity” by selling lookalike versions of some of its most popular apparel, including:
Scuba hoodies
Define jackets
ABC pants
One product called out in the lawsuit is the Hi-Tec Men’s Scuba Full Zip, which Costco lists for $19.97, compared to Lululemon’s jackets that typically cost over $100.
Trade Dress, Trademark, and Patent Infringement Explained
Lululemon alleges that Costco’s imitation products infringe on its design patents, trademarks, and trade dress, which protect the visual identity and source-distinguishing features of its apparel. The lawsuit argues:
Costco’s Kirkland-branded clothing mimics Lululemon designs
The manufacturer overlap between authentic brands and Kirkland items confuses consumers
Costco allegedly fails to clarify whether Kirkland products are from third-party original brands — enhancing the confusion
Why Lululemon Is Taking Legal Action
According to a company spokesperson:
“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.”
The lawsuit includes demands for:
A jury trial
Permanent injunction to halt sales of infringing items
Monetary damages (amount unspecified)
History of IP Enforcement: Lululemon v. Peloton
This isn’t Lululemon’s first time defending its brand. In 2021, Lululemon filed suit against Peloton over similar apparel disputes. Interestingly, by 2023, the two companies reached a five-year partnership, with Lululemon becoming Peloton’s official athletic apparel partner — showing the power of legal leverage in brand negotiations.
What This Means for Retailers and Brand Owners
This case spotlights critical IP issues facing major brands:
Retailers can’t rely on “generic” duplication without legal risk
Consumer confusion is a powerful legal trigger
Design patents and trade dress are enforceable against lookalike goods
As private-label strategies expand, more brands may face scrutiny over where inspiration ends and infringement begins.
Final Thoughts
Lululemon’s lawsuit against Costco isn’t just about clothes, it’s a strategic defense of intellectual property, brand trust, and consumer clarity. The outcome of Lululemon Athletica Canada Inc. v. Costco Wholesale Corp., Case No. 2:25-cv-05864 could set precedent on how courts handle private label duplication and trade dress confusion in the athleisure industry.
