Luxury athletic brand Lululemon is suing Costco for allegedly copying its signature designs and selling them at a lower price under its Kirkland Signature brand. The lawsuit claims that Costco’s sales of unauthorized apparel create an improper association with Lululemon’s authentic products, leading consumers to mistakenly believe they are buying genuine items.
The complaint also accuses Costco of trading on Lululemon’s reputation and goodwill by selling unlicensed apparel based on the athleisure brand’s design patents. This includes sales of products that have become notorious among fashion enthusiasts as “knockoffs” or “dupes.”
Lululemon, founded in 1998, is a leading retailer in the fashionable athletic space with single items often ringing in at over $100. The company has taken its intellectual property rights seriously and will pursue legal action to protect them.
Costco’s private label Kirkland Signature brand competes with name-brand products at significantly lower prices, drawing in devoted customers. However, the lawsuit may impact Costco’s strategy for selling competing products.
Source: https://www.npr.org/2025/07/01/nx-s1-5453696/lululemon-costco-lawsuit-fashion-knockoffs-dupes