Lululemon Athletica, a Canadian athletic apparel company based in Vancouver, has accused Costco Wholesale Corporation of infringing on its trademarks by selling products that allegedly mimic Lululemon’s designs. That outraged the New Jersey commuters, and the dispute escalated. It’s based on Costco’s private label, Kirkland, and accuses the big box retailer of copying Lululemon’s patents, along with its goodwill associated with high standards.
According to Lululemon, Costco’s actions irreparably damaged its hard earned brand. They insist that Costco is peddling knock-off versions of their famed Scuba hoodies, Define jackets and ABC pants. The company claims that these purported duplicates infringe the company’s intellectual property rights. They consider these copies an infringement on the goodwill a company has built up with consumers over the years. According to Lululemon, the infringing products include legging and yoga pant-style items manufactured by Danskin, Jockey, and Spyder. All of these were sold under Costco’s Kirkland label.
In response to these damages claims, Costco has outright denied that it has infringed on any of Lululemon’s designs. Costco filed a new motion in a California district court motion to dispose of Lululemon’s allegations. The retailer insists in the most vigorous terms possible that it denied violation of any Lululemon patents or trademarks. The litigation, if it does occur, will test the merits of Lululemon’s assertions. They will further analyze the extent to which Costco’s offerings mimic Lululemon’s models.
The current conflict underscores the very real and continuing threat businesses encounter as they try to protect their valuable intellectual property in a predatory, competitive retail landscape. Lululemon’s assertion that Costco is leveraging its established reputation raises important questions about brand integrity and consumer perception within the marketplace. As this legal battle plays out, both companies are likely to aggressively make their respective cases publicly. They’re just looking out for their own interests and trying to delineate what fair competition looks like.
