Lululemon Initiates Legal Action Against Costco for Clothing Imitations


For nearly as long as mankind has worn fancy things, there has been an effort to replicate those items. Ancient artisans borrowed from each other's designs, while Victorian hustlers created imitation jewelry. Even Christian Dior was believed to sell his designs to lesser-known producers for cheaper versions.

However, for the modern athleisure brand Lululemon, the issue of imitation has reached a critical point. On June 25, Lululemon filed a lawsuit in California against wholesale retailer Costco, accusing it of selling knockoff sweatshirts, jackets, and other activewear at significantly lower prices than Lululemon's offerings.

Successfully litigating against knockoffs is challenging for fashion brands due to often vague copyright laws. Lululemon's lawsuit seeks restitution and damages, claiming that Costco profited from Lululemon's "sweat equity" and harmed the company's brand reputation. Costco has not yet responded to the allegations.

Lululemon specifically accuses Costco of selling imitations of its Scuba hoodies, Define jackets, and popular ABC pants for men. The company presented a 49-page court filing that includes design images and side-by-side comparisons, arguing that Costco's products, made by manufacturers like Danskin, Spyder, and Jockey, use marketing language similar to Lululemon's.

One example cited involves a turquoise pullover made by Danskin that closely resembles Lululemon's Scuba sweatshirt, marketed under the same color name, "Tidewater Teal." Additionally, Lululemon claims that Costco produced a knockoff of its ABC pants, originally priced at about $130, and sold them for just $20 under the Kirkland brand.

Lululemon, known for its minimalist styles and higher price points, has become a frequent target for knockoffs. Social media platforms like TikTok feature hashtags directing users to cheaper imitations of the brand's leggings and athletic wear. In response, Lululemon has hosted "dupe" exchanges in 2023, allowing customers to trade confirmed knockoff leggings for authentic products.

Nikki Neuburger, Lululemon’s chief branding officer, described the exchanges as a way to acknowledge the existence of "dupes" while emphasizing the importance of the original products. She noted it was a fun way to engage with a trend that is part of contemporary culture.

The phenomenon of "dupe" culture has evolved, particularly among younger generations. Many millennials remember purchasing knockoff designer items in urban markets, while today, TikTok has become a leading platform for showcasing such products. Videos tagged with "dupe" have amassed billions of views, as influencers promote affordable alternatives to popular items.

In response to the increasing prevalence of knockoffs, designers are actively seeking to protect their original creations. Recent lawsuits include Sol de Janiero's action against imitations of its scented mist sprays and Deckers' legal battles over knockoff UGG boots and slippers. This May, Deckers also sued Costco for selling cheaper shearling slippers that it claims directly copied the UGG brand.





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