Lululemon, a luxury athletic wear maker, is suing warehouse giant Costco for alleged “imitations” or “dupes” sold by warehouse giants.
Lululemon filed a lawsuit in US District Court in Central California on June 27th. Costco’s in-house Kirkland Signature brand claims it infringed its trademark, trademark and design patents, causing “serious harm” to the brand. The company is seeking unspecified financial damages for loss of profits and halts the production and marketing of Costco’s copied items.
Let’s take a closer look at Lululemon clothing in question.
Lululemon items cited in the lawsuit define “scuba” hardy, “jacket” and “ABC” pants. The company argues that “regular observers” cannot convey the difference between the two brands in the lawsuit. Costco’s products are significantly less than Lululemon Clothing. The Lululemon “Scuba” hoodies are available on the company’s website for between $99 and $118, and Costco items cost $8.
“scuba”: The oversized half zip hoodie has finger holes in the sleeves and a kangaroo pocket on the front. The Lululemon website sells between $99 and $118, while Costco’s “Dupe” called “Danskin Half-Zip Pullover” is a retailer for $8.
“Definition” Jacket: The full zip jacket features lines in the shape of the front and back, highlighting the wearer’s waist. It sells for $128 on the Lululemon website, and Costco’s “Dupe,” known as “Jockey Ladies Yoga Jacket,” or “Spyder Women’s Yoga Jacket,” is available for $22.
“ABC” Men’s Pants: It features five pockets, decorative lines and four-way stretch. They are retailing on the Lululemon website for $128, and their suspected Costco “Dupe” is called “Kirkland 5 Pocket Performance Pant” and costs $10. The court documents show:
In addition to clothing, Lululemon claims that Costco stole the “Tidewater Teal” colour.
What is Costco’s Kirkland brand?
Costco’s Kirkland Signature Brand is a flagship private label brand launched in 1995 and is named after the former location of Kirkland, Washington. According to the Wall Street Journal, Kirkland items accounted for about a third of Costco’s revenue, bringing in $86 billion last year.
Costco sells items from the name brand, but like Walmart’s “Great Value” line, it frequently features Kirkland branded items next to the name brand at a low cost.
The lawsuit stated that Costco “is known to use a manufacturer of popular branded products” for its own Kirkland® “private label “products”” and that the practice allows consumers to believe that Kirkland products are made by suppliers of the original item. The lawsuit argues that Costco “doesn’t dispel this ambiguity.”
Reporters for the story contacted both companies, but did not receive a response by the time of their initial publication. In a previously reported story, a Lululemon spokesman told USA Today, “As an innovation-led company that invests heavily in product research, development and design, we are responsible for protecting and implementing intellectual property rights very seriously and pursuing appropriate legal action when necessary.”
Note: USA Today has once been mentioned in the lawsuit as covering Lululemon products, but is not a party involved in the lawsuit.
George Petras and Greta Cross contributed
