lulu v. dupes

lululemon and Costco are alike in at least two ways: 1) they sell you plenty of stuff you don't need, and 2) they have cult-like followings. And, now, lululemon alleges that they are (too) similar in a third way--an unlawful one. On Friday, lululemon (or simply "lulu") filed a lawsuit in federal court alleging that Costco is infringing on its intellectual property, creating consumer confusion between lulu's products and Costco's products.

Founded in 1998, lululemon prides itself on creating high-performance products with innovative designs, impeccable construction, and strategic fits. As a result of its significant investment, lululemon secures IP protection for its products. For the purposes of this lawsuit, lululemon's IP rights include trademarks and trade dress for SCUBA®️ hoodies and sweatshirts, DEFINE®️ jackets, and ABC pants. lululemon also holds patents for the SCUBA hoodies and sweatshirts and DEFINE jackets. 

According to the Complaint, Costco is infringing on lululemon's IP, reputation, and goodwill by importing and selling unauthorized and unlicensed apparel employing knockoff, infringing versions of lululemon's products (the "dupes"). The dupes at issue have been sold under the names "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,” and “Kirkland 5 Pocket Performance Pant.” You can see the side-by-side comparisons in the Complaint (and let me know your thoughts): https://lnkd.in/eiMjMExm.

lululemon alleges claims for trademark infringement, trade dress infringement, patent infringement, and federal and state unfair competition. lululemon alleges that Costco's actions "have caused, and are likely to continue to cause confusion, mistake, and deception among consumers as the origin, source, sponsorship, approval, and/or affiliation of [Costco]’s and/or its products with [lulu]." lulu seeks injunctive and monetary relief, including lost profits or a reasonable royalty for patent infringement, disgorgement of profits, treble damages, and attorneys' fees and costs under the Lanham Act and other applicable federal and state law. How much will these dupes cost Costco, if anything? Probably more than those hot dogs. Stay tuned.