Lululemon Athletica Inc. recently filed suit against Costco Wholesale Corporation. The Waigibor sports apparel company has filed a lawsuit against the warehouse chain, accusing Costco of illegally selling clothes that infringe on its intellectual property. This lawsuit focuses on what Lululemon calls “lookalike” products that are very similar to its own successful products. The legal battle underscores a long-standing issue in the fashion industry over how innovative designs and trade dress should be protected.
A federal court in California originally assigned the suit. It claims that Costco has been selling leggings and other athletic wear which particularly close to home, directly compete with Lululemon’s products. In its complaint, Lululemon argues that consumers are confused by these third-party products and, more importantly, that they dilute its brand identity. In a competitive space, where both originality and the company’s reputation matter, the firm makes it a point to uphold the highest degree of originality.
A company spokesperson for Lululemon stated, “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.” They are written by Lululemon’s legal team to highlight Lululemon’s dedication to protecting its original creations from other companies stealing them.
This is hardly the first occasion that Lululemon has made headlines by suing someone with whom it shares a trademark, trade dress, or copyright over such uses. In 2021, the company faced a knockoff artists problem of sorts with Peloton Interactive Inc. They claimed that Peloton’s gear included designs eerily similar to their trademark. Not long after this spat, Lululemon and Peloton celebrated a five-year collaboration—two years later. This partnership quickly positioned Lululemon as Peloton’s primary athletic apparel collaborator. Both of these companies can’t just use the mutual branding and customer base to work and be successful together.
Whether or not that will be the outcome of the current lawsuit, Costco’s fate still hangs in the balance. If approved, this extension will make Lululemon’s brand protection even more robust. It can, however, have a cascading effect of discouraging other retailers from rolling out lookalike products. This enforcement action is a reminder of the complexities of intellectual property rights when it comes to the fashion industry. Design externalities can lead to intense legal battles, illustrating the inherent dangers that designers must navigate.
