Lululemon sues Costco, alleging the discount retailer copied its designs

Lululemon is suing Costco, accusing the discount retailer of selling "confusingly similar" replicas of its jackets, sweatshirts and pants.

In a suit filed Friday successful the U.S. District Court for the Central District of California, the diversion and manner apparel institution claims that definite Costco products imitate its ain designs truthful intimately that it constitutes "trade dress" infringement, which occurs erstwhile a merchandise mimics different truthful intimately that it confuses consumers. 

The apparel institution claims that Costco's "knockoff" designs, oregon merchandise "dupes," interruption trademark instrumentality due to the fact that "some customers incorrectly judge these infringing products are authentic Lululemon apparel." In different cases, "customers specifically acquisition the infringing products due to the fact that they are hard to separate from authentic Lululemon products," the suit alleges. 

"Indeed, 1 of the purposes of selling 'dupes' is to confuse consumers astatine the point-of-sale and/or observers post-sale into believing that the 'dupes' are Plaintiffs' authentic products erstwhile they are not," the suit alleges. 

Lululemon refers to itself successful the suit arsenic a "path-breaking" apparel institution that has acceptable a caller modular for show diversion wear, adding that its "construction techniques" and "strategic fits" assistance it basal retired to consumers. Reached for comment, the Vancouver, Canada-based institution said it fiercely defends its products. 

"As an innovation-led institution that invests importantly successful the research, improvement and plan of our products, we instrumentality the work of protecting and enforcing our intelligence spot rights precise earnestly and prosecute the due ineligible enactment erstwhile necessary," a Lululemon institution spokesperson told CBS MoneyWatch.

Costco did not instantly respond to CBS MoneyWatch's petition for comment. 

While copycat products tin beryllium truthful poorly constructed and designed that they airs nary menace to the originals, Costco's dupes person caused a disturbance for their verisimilitude to the authentic Lululemon goods. A January header successful The Washington Post read, "Is that hoodie Lululemon oregon a Costco dupe? No 1 has to cognize but you." On societal media, users station images and videos of Costco athletic-wear products with the hashtag #luludupe oregon #lululemondupes.

What items does Lululemon accidental Costco copies?

The items astatine the halfway of the suit see Lululemon's fashionable "Scuba" hoodies and sweatshirts, its "Define" jackets, and "ABC" agelong pants — that lucifer khakis pants — for men. 

Lululemon's Scuba hoodie retails for $118, portion its Define overgarment sells for $128. The ABC pants outgo $128.

According to Lululemon, Costco's infringing products include: 

• Danskin Ladies Half-Zip Hoodie
• Danskin Half-Zip Pullover
• Jockey Ladies Yoga Jacket
• Spyder Women's Yoga Jacket
• Hi-Tec Men's Scuba Full Zip
• Kirkland 5 Pocket Performance Pant

Lululemon is seeking damages successful the signifier of mislaid profits, and for Costco to cease the manufacturing and organisation of products Lululemon claims interruption commercialized dress.