• Lululemon accuses Costco of selling nearly identical copies of its athleisure products.
• The lawsuit claims these "dupes" mislead consumers and violate trademark laws.
• Lululemon seeks damages and an injunction to stop Costco's alleged infringements.

Lululemon Athletica has filed a lawsuit against Costco, alleging that the discount retailer is selling "confusingly similar" replicas of its athletic apparel, including popular items like the Scuba hoodie and ABC pants. The lawsuit, initiated in the U.S. District Court for the Central District of California, claims that Costco's products, sold under its Kirkland Signature brand, constitute "trade dress" infringement by mimicking Lululemon's distinctive designs. The complaint emphasizes that such copycat products lead consumers to mistakenly believe they are purchasing authentic Lululemon items, which constitutes a violation of trademark law, according to CBS News, SFGate, and NPR.

Lululemon argues that by selling these lower-priced knockoffs, Costco is unlawfully capitalizing on the brand's reputation and integrity. The lawsuit claims that the ambiguity surrounding the Kirkland products leads consumers to believe they are made by Lululemon or under its guidance, which undermines the brand's goodwill built through significant investment in design and innovation. The company further states that it aims to protect its intellectual property by pursuing all necessary legal actions against such infringement, as mentioned in statements made to CBS News and SFGate.

The lawsuit highlights specific items allegedly replicated by Costco, including the Danskin Ladies Half-Zip Hoodie and the Hi-Tec Men's Scuba Full Zip, showcasing a price discrepancy as Costco lists these items at significantly lower prices than Lululemon's original offerings. For example, Lululemon's Scuba hoodie retails for $118, while similar products by Costco are priced around $19.97. This pricing strategy is central to Lululemon's claims, indicating that Costco aims to draw in customers by presenting a misleading association with the Lululemon brand, according to CBS News, SFGate, and NPR.