Lululemon Sues Costco Over Dupes: Lawsuit Details on Imitation Apparel

Key Takeaways

Lululemon sued Costco in federal court (June 27, 2025) for selling alleged "dupes" of its patented Scuba hoodies, Define jackets, and ABC pants under brands like Kirkland Signature, Danskin, and Spyder .
Massive price gaps exist: Lululemon’s $118 Scuba hoodie vs. Costco’s $8 Danskin version; $128 ABC pants vs. $10 Kirkland pants .
Lululemon claims Costco’s designs are “confusingly similar,” causing customer confusion and infringing design patents and trade dress .
Costco partially removed items after a November 2024 cease-and-desist letter but resumed selling similar products, prompting the lawsuit .
Lululemon seeks lost profits, a permanent sales ban on the items, and removal of related marketing .

The Core of Lululemon’s Lawsuit Against Costco

So yeah, Lululemon basically took Costco to court over this. Filed the thing June 27th in California’s federal court. Said Costco’s been selling knockoffs, or “dupes” if you wanna use the trendy word, of their most popular stuff. We’re talking about the Scuba hoodie, the Define jacket, and those ABC pants for guys. Not just under Costco’s Kirkland Signature label, either. They’ve got other brands like Danskin, Jockey, and Spyder mixed up in it too .

Lululemon’s argument hinges on intellectual property. They’re saying these Costco items copy protected design elements. Things like specific stitching patterns, seam placements, even the way the stripes run across a Define jacket’s back. Small details, sure, but Lululemon argues they’re signature. Part of what makes their stuff recognizable. And Costco’s versions? Way too close for comfort. Like, “confusingly similar” is the legal term they threw around .

They also pointed out something kinda sneaky. See, Costco often uses the same factories that make name-brand stuff for their Kirkland line. But they don’t exactly advertise that connection. Lululemon thinks this makes folks wonder… maybe that Kirkland hoodie is a real Lululemon, just rebranded? They reckon Costco lets that confusion hang in the air on purpose .

Products at the Heart of the "Dupe" Dispute

Alright, let’s get specific. Which stuff exactly has Lululemon so riled up? The lawsuit names six products. Some Kirkland, some from other labels Costco stocks.

Table: Key Products in the Lululemon vs. Costco Lawsuit

The price differences are just wild. Take the Scuba hoodie. Over a hundred bucks at Lululemon. Costco’s Danskin lookalike? Eight dollars. Eight! Or those men’s ABC pants. Lululemon charges $128. Kirkland’s version? Ten bucks online. That kinda gap makes you pause, right? Lululemon says it’s stealing their hard-earned rep. People pay for their design, their quality feel. Costco’s profiting off that sweat, they claim .

And it’s not just about looking kinda similar. Lululemon holds design patents on these items. That means specific visual features are legally protected. Their lawsuit includes side-by-side pics. You can see it – the pocket shapes on the ABC pants, the cuff detailing on the Scuba hoodie, those distinctive lines running over the shoulders and down the back on the Define jacket. Little things, but together? Creates that recognizable Lululemon silhouette. They argue Costco copied those protected elements way too closely .

Why "Dupes" Are a Legal Problem (Beyond Just Copying)

Okay, so why is Lululemon making such a big deal? It’s not just about copying. Their lawsuit digs into two bigger headaches: consumer confusion and that whole brand value thing they’ve spent years building.

First up, confusion. Lululemon flat-out says some buyers genuinely think these Costco items are Lululemon products. Maybe made specially for Costco, or overstock, or something. Others know it’s a copy, sure, but they buy because it looks nearly identical to the real deal. Especially folks who see it later – like, someone spotting a coworker’s jacket across the room. They might think it’s Lululemon. That blurs the lines. Cheapens the brand’s rep for quality and innovation, Lulu argues .

Then there’s the social media effect. Hashtags like #LululemonDupes are huge on TikTok and Instagram. Influencers post reviews hunting down the best lookalikes for less. Costco’s versions pop up constantly in those posts. Lululemon’s lawsuit actually points to this trend as evidence. It shows, they argue, that people directly link these Costco items to their brand. Proves the association exists in shoppers' minds, even if Costco never used the Lululemon name .

It’s also about protecting what they’ve invested. Lululemon spends a ton on R&D – designing fabrics, perfecting fits, testing durability. That “buttery-soft” feel? Not cheap to engineer. Their statement hits this hard: “innovation-led company… invests significantly.” Letting cheaper copies flood the market risks their whole business model. Why pay premium prices if a near-identical version costs peanuts? .

Costco's "Dupe" Strategy and Lululemon's Legal Counter

Costco’s play here isn’t exactly new. Their Kirkland Signature line is legendary for offering quality comparable to big brands, just way cheaper. Think batteries, olive oil, even liquor. Often, yeah, rumors swirl that it is the name-brand stuff, repackaged. Costco rarely confirms or denies. That mystery kinda works for them. Saves shoppers money, builds crazy loyalty .

But applying that model to highly designed, patented apparel? That’s where Lululemon draws the line. They argue it crosses from savvy private-label business into intellectual property theft. It’s one thing to make generic black leggings. Another to allegedly replicate patented design details stitch-for-stitch .

Lululemon didn’t just leap to court. They sent Costco a formal cease-and-desist letter back in November 2024. Focused on the Scuba hoodie knockoffs initially. And hey, Costco did pull some items. Seemed like progress. But then, Lululemon claims, Costco turned around and started selling different items that were suspiciously similar. Like swapping the Danskin hoodie for a Hi-Tec Men’s Scuba Full Zip. Still too close to the original Scuba design, Lulu says. Felt like a shell game .

That move basically forced Lululemon’s hand. The lawsuit followed. They’re pushing for a jury trial. What do they want? Money for lost sales, obviously. But more crucially, an order forcing Costco to stop selling those items completely. Like, yank them off shelves and websites. Delete any ads or posts showing them. And don’t make more. A total shutdown .

Broader Trend: The Rising Legal Battle Against "Dupes"

Lululemon vs. Costco isn’t happening in a vacuum. It’s part of a much bigger fight brewing across retail. Brands are getting fed up with dupes, especially ones sold by massive, legit retailers like Costco or Amazon.

Just look at recent lawsuits:

Deckers (owns UGG) sued Costco in May 2025 over those Kirkland Signature shearling slippers. Looked way too much like UGG’s Tasman slipper.
American Eagle went after Amazon last year. Said Amazon sold dupes of their Aerie sweatshirts and shorts, using a fake brand name spelled almost right.
Tapestry (parent of Coach) sued Shein in March 2025. Accused them of pumping out dupes featuring Coach’s signature “C” logo .

It’s a sign of the times. Dupes exploded thanks to social media and inflation. Shoppers, especially younger ones, want the look without the crazy price tag. #DupeTok is massive. But brands argue that when dupes copy patented designs or trademarked logos, it’s illegal. Not just savvy shopping .

Legal experts, like IP lawyer Elizabeth Dipchand, note this case stands out because it’s not some shady overseas counterfeit operation. It’s Costco – a giant, respected retailer. The stakes feel higher. If Lululemon wins, it could seriously dent the dupe economy for branded apparel. Force retailers to be way more careful about how closely they mimic .

Potential Outcomes and Market Impact

So, what happens next? This lawsuit could drag on for ages, honestly. But a few paths seem possible:

Settlement & Partnership (Like Peloton): Remember 2021? Lululemon sued Peloton over similar design copying in their apparel. They fought… then settled in 2022. By 2023? Boom – announced a 5-year deal making Lululemon Peloton’s primary apparel partner. Could Costco and Lululemon strike a similar deal? Maybe Kirkland becomes an authorized seller? Long shot, but possible .
Costco Pulls Items & Pays Up: Costco might decide it’s not worth the fight. Yank the disputed Danskin, Kirkland, and Spyder items quietly. Maybe pay Lululemon some undisclosed sum. Ends the lawsuit, avoids a messy trial. Keeps things simple.
Court Victory for Lululemon: If a jury agrees Costco infringed patents and created confusion, Lululemon could win big. Get awarded those lost profits they want. Force Costco to permanently stop selling the items. Set a major legal precedent making it easier for other brands to sue over dupes.
Court Victory for Costco: Costco could win by arguing their items are different enough, or that Lululemon’s designs are too generic to patent. A loss for Lululemon would be a huge blow, signaling dupes are fair game. Might encourage even more lookalikes.

Market-wise, Lululemon could really use a win. Their stock’s been down roughly 36-37% this year. They’ve cut forecasts, blaming tariffs, slow US demand, and rivals like Vuori and Alo. Protecting their high-price, high-innovation brand image is critical right now. Letting Costco sell $8 lookalikes undermines that whole premium vibe .

For Costco? It’s a test of their Kirkland model. Finding that line between delivering value and respecting IP law. Their customers love those viral Kirkland fashion finds. A loss might mean fewer of those exciting, buzzworthy "dupe" discoveries hitting the aisles .

How This Lawsuit Impacts Shoppers

Let’s be real – the biggest question for regular folks is: “What does this mean for my wallet?”

If Lululemon wins:

Fewer obvious dupes at Costco. Those super-cheap, near-identical lookalikes? Probably gone. Costco would likely avoid anything too close to patented designs.
Less #DupeTok content? Influencers might struggle to find perfect Lulu lookalikes at Costco prices. The thrill of the hunt gets harder.
Potential for authorized collabs. Long-term, maybe we see legit partnerships (like Lulu-Peloton). Could mean some branded quality at lower prices, but likely still pricier than Kirkland’s current dupes.

If Costco wins (or settles without major changes):

The dupe gold rush continues. Expect more viral Kirkland finds mimicking high-end brands.
Brands might innovate faster. If dupes flood the market, Lululemon & others would need to constantly release newer, harder-to-copy designs and tech to justify prices.
Quality questions linger. Can a $8 hoodie really match Lululemon’s fabrics and construction? Probably not. Dupes offer the look, not necessarily the long-term wear or performance.

Right now, those Costco items are still on sale while the lawsuit plays out. So if you’re curious about that Danskin hoodie or Kirkland jogger? Might wanna grab ‘em soon. This legal fight could make them vanish .

Frequently Asked Questions

What exactly is a "dupe"?

“Dupe” is short for duplicate. It means a product that mimics the look, style, or function of a popular, usually more expensive, branded item. Dupes are often significantly cheaper. They become legal problems (like this lawsuit) when they allegedly copy patented designs or trademarked elements, potentially confusing shoppers about their origin .

Which specific Costco products are named in the Lululemon lawsuit?

Lululemon’s complaint specifically lists six Costco items as infringing dupes:

Danskin Women’s Half-Zip Pullover (alleged Scuba Hoodie dupe)
Kirkland Signature Men’s 5 Pocket Performance Pant (alleged ABC Pant dupe)
Jockey Ladies Yoga Jacket (alleged Define Jacket dupe)
Spyder Women’s Yoga Jacket (alleged Define Jacket dupe)
Hi-Tec Men’s Scuba Full Zip (alleged Scuba Hoodie dupe)

How much cheaper are the Costco "dupes" compared to Lululemon?

The price differences are stark:

Scuba Hoodie: Lululemon = $118 vs. Costco (Danskin) = $8
ABC Pant (Men’s): Lululemon = $128 vs. Costco (Kirkland) = $10
Define Jacket: Lululemon = $128 vs. Costco (Jockey/Spyder) = $22

Has Lululemon sued other companies for similar reasons?

Yes. In late 2021, Lululemon sued Peloton, claiming the fitness company’s apparel copied Lululemon’s patented designs. That lawsuit was settled in 2022. Interestingly, by 2023, the two companies announced a five-year partnership where Lululemon became Peloton’s primary athletic apparel partner .

Can I still buy the alleged "dupe" items at Costco right now?

As of early July 2025, based on the lawsuit filings and reports, Costco was still selling the items in question. Lululemon noted this in their complaint. However, availability might vary by location or could change quickly due to the legal action. If you want them, checking your local Costco or their website soon is likely the only way to know for sure .

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