Lululemon, the popular athleisure brand, is suing Costco, claiming the retailer sells “dupes”—cheap knockoffs—of its high-end apparel. The lawsuit, filed in June 2025 in California, accuses Costco of copying Lululemon’s Scuba hoodies, Define jackets, and ABC pants, selling them for a fraction of the price. A viral YouTube video highlights shoppers raving about Costco’s $8–$22 versions of Lululemon’s $128 items (NBC News, July 2, 2025). This case has sparked buzz online, with some praising Costco’s affordable options and others backing Lululemon’s fight to protect its brand (@KristenVanNest, July 2, 2025). This blog dives into the lawsuit, what it means for shoppers, and how to navigate intellectual property disputes. If you’re facing a similar legal issue, our team offers free consultations to guide you.
What Is the Lululemon vs. Costco Lawsuit About?
Lululemon filed a 49-page lawsuit in the U.S. District Court for the Central District of California, claiming Costco violates its patents by selling “dupes” of its iconic products. The lawsuit targets:
- Scuba Hoodies: Costco’s Danskin Half-Zip Pullover ($7.97) vs. Lululemon’s $118 version.
- Define Jackets: Costco’s Jockey and Spyder Yoga Jackets ($21.99) vs. Lululemon’s $128 jacket.
- ABC Pants: Costco’s Five-Pocket Pants ($9.97) vs. Lululemon’s $128 pants.
Lululemon says Costco’s Kirkland brand, along with manufacturers like Danskin, Jockey, and Spyder, copies its patented designs, like curved kangaroo pockets and ornamental crotch lines. The lawsuit even claims Costco used Lululemon’s exclusive “Tidewater Teal” color, confusing shoppers into thinking these are authentic products (Fox Business, July 1, 2025). Lululemon argues Costco “unlawfully traded” on its reputation, hurting its $10.6 billion brand (Washington Post, July 2, 2025).
Lululemon seeks:
- Monetary Damages: To recover lost profits from Costco’s sales.
- Injunction: To stop Costco from making, selling, or advertising the alleged dupes.
- Jury Trial: To decide the case (Daily Mail, June 30, 2025).
Costco hasn’t responded publicly, but the case is gaining traction online, with shoppers comparing the products’ feel and quality (NBC News YouTube, July 2, 2025).
Why Are “Dupes” a Big Deal?
“Dupes” are affordable copies of high-end products, popular among budget-conscious shoppers. Social media, like TikTok’s #LululemonDupes hashtag, fuels their popularity by showcasing lookalikes (Fox LA, July 1, 2025). Costco’s dupes, priced at $8–$22 compared to Lululemon’s $100+, appeal to those who can’t afford premium athleisure (@PilatesPapii, July 2, 2025). For example:
- Shoppers say Costco’s pants feel “just like Lululemon Align” without the $100 price tag (NBC News YouTube, July 2, 2025).
- On X, users praise Costco’s Kirkland pants for similar stretch and comfort at a quarter of the cost (@Setitie, Reddit, June 30, 2025).
Lululemon claims these dupes confuse customers, who may think Kirkland products are made by Lululemon, damaging its brand (CNN Business, July 1, 2025). The company sent cease-and-desist letters to Costco before suing, showing it tried to resolve the issue privately (CBC News, July 1, 2025).
Legal Basis of Lululemon’s Lawsuit
Lululemon’s case hinges on intellectual property (IP) law, specifically:
- Patent Infringement: Lululemon holds patents for designs like the Scuba hoodie’s curved pocket and ABC pants’ crotch lines. It claims Costco’s products copy these protected features (Fox Business, July 1, 2025).
- Trade Dress Violation: Lululemon argues its Scuba, Define, and ABC lines have distinctive looks that Costco mimics, confusing shoppers (Fox LA, July 1, 2025).
- Trademark Misuse: Using “Tidewater Teal” suggests a false connection to Lululemon’s brand (Washington Post, July 2, 2025).
However, proving IP violations is tricky. Susan Scafidi, an IP and fashion law expert, notes that U.S. law protects labels and logos more than clothing designs, making these cases hard to win (NBC News YouTube, July 2, 2025). Lululemon must show Costco intentionally copied its designs and caused consumer confusion.
How Strong Is Lululemon’s Case?
Lululemon’s lawsuit is “solid” and “substantial” due to its detailed 49-page filing, which includes side-by-side comparisons of products (NBC News YouTube, July 2, 2025). Strengths include:
- Patent Evidence: Lululemon’s patents cover specific design elements, like pocket shapes and stitching.
- Consumer Confusion: Social media posts and hashtags like #LululemonDupes suggest shoppers link Costco’s products to Lululemon (Fox LA, July 1, 2025).
- Brand Damage: Lululemon’s $10.6 billion revenue relies on its premium reputation, which Costco’s $8–$22 dupes could hurt (Washington Post, July 2, 2025).
Challenges include:
- U.S. Law Limits: Clothing designs are hard to protect under IP law, as functional elements (e.g., yoga pants’ stretch) aren’t patentable (NBC News YouTube, July 2, 2025).
- Proving Intent: Lululemon must show Costco deliberately copied its designs, not just made similar products (@VeeCeeMurphy76, July 3, 2025).
- Public Sentiment: Some shoppers and X users argue Costco’s dupes are fair competition, offering affordable options (Reddit, June 30, 2025).
Past Lululemon Lawsuits and Outcomes
This isn’t Lululemon’s first IP battle. In 2021, it sued Peloton for copying its bras and leggings. The case settled in 2023, leading to a five-year partnership where Lululemon became Peloton’s apparel partner (CNN Business, July 1, 2025). This suggests Lululemon may settle with Costco if negotiations succeed, especially as Costco hasn’t yet responded (AP News, July 2, 2025).
Other brands have filed similar lawsuits:
- Deckers vs. Costco (2025): Deckers sued Costco over Kirkland slippers resembling Ugg Tasman shoes (Washington Post, July 2, 2025).
- American Eagle vs. Amazon (2024): American Eagle claimed Amazon sold Aerie dupes with similar branding (Washington Post, July 2, 2025).
These cases show a growing trend of brands fighting dupes as social media amplifies their popularity.
What’s at Stake for Shoppers and Businesses?
For shoppers, the lawsuit could limit access to affordable dupes. If Lululemon wins, Costco may stop selling these items, leaving budget-conscious buyers with fewer options (NBC News YouTube, July 2, 2025). X users note Costco’s dupes are still on shelves, but some online listings are “out of stock” or removed (@presstelegram, July 1, 2025).
For Lululemon, the case protects its $10.6 billion brand from being undercut by $8 knockoffs, especially amid 2025 challenges like Trump’s tariffs and a 37% stock drop (CNN Business, July 1, 2025). A win could deter other retailers from copying its designs.
For Costco, a loss could force it to redesign Kirkland products and pay damages, impacting its reputation for budget-friendly goods (Axios, July 2, 2025). However, some X users argue the lawsuit boosts Costco’s sales by publicizing its dupes (@PilatesPapii, July 2, 2025).
What Can You Do If Facing an IP Dispute?
If you’re a business or individual involved in an IP dispute, like copying designs or being accused of it, take these steps:
- Review Patents: Check if the designs are patented using the USPTO database (uspto.gov).
- Gather Evidence: Document your product’s design process to prove originality or differences.
- Hire a Lawyer: An IP attorney can defend your case or negotiate a settlement. Our firm offers free consultations.
- Respond to Cease-and-Desist Letters: Address claims promptly to avoid lawsuits, as Lululemon tried with Costco (CBC News, July 1, 2025).
- Monitor Social Media: Hashtags like #LululemonDupes can signal IP issues early (Fox LA, July 1, 2025).
Why This Matters
The Lululemon vs. Costco lawsuit highlights the clash between premium brands and affordable dupes in 2025. As social media fuels the dupe economy, brands like Lululemon are fighting to protect their designs, while shoppers demand budget-friendly options (@KristenVanNest, July 2, 2025). This case could set a precedent for how courts handle dupe lawsuits, affecting retailers and consumers. If you’re dealing with an IP issue, contact our legal team for a free consultation to explore your options.
Related Topics to Explore
- Wrongful Arrest Lawsuits: Learn about compensation for police misconduct.
- Consumer Rights in Retail: Understand protections against misleading products.
- IP Law in Fashion: Explore how brands protect designs.
Sources
- NBC News, “Lululemon Sues Costco Over Viral Alleged ‘Dupes’” (nbcnews.com, July 2, 2025)
- Fox Business, “Costco Accused of Selling Unauthorized Lululemon Dupes” (foxbusiness.com, July 1, 2025)
- Washington Post, “Lululemon Sues Costco Over Alleged ‘Dupes’” (washingtonpost.com, July 2, 2025)
- CNN Business, “Lululemon Accuses Costco of Selling ‘Unauthorized’ Versions” (cnn.com, July 1, 2025)
- Daily Mail, “Lululemon Launches Stunning Attack on Costco” (dailymail.co.uk, June 30, 2025)
- CBC News, “Lululemon Sues Costco Over Sale of Alleged Knock-Offs” (cbc.ca, July 1, 2025)
- Axios, “Lululemon Costco Lawsuit: Athleisure Brand Sues Wholesale Club” (axios.com, July 2, 2025)
- X Posts, @KristenVanNest (July 2, 2025), @PilatesPapii (July 2, 2025), @VeeCeeMurphy76 (July 3, 2025)
