The athleisure industry's most anticipated legal battle has arrived, pitting premium yoga wear giant Lululemon against wholesale powerhouse Costco in a case that could fundamentally alter how fashion brands protect their intellectual property. Filed on 27 June 2025 in California federal court, the lawsuit alleges that Costco is deliberately selling products that visually mimic Lululemon's signature designs, capitalising on the Canadian company's reputation while offering dramatically cheaper alternatives.
This legal dispute arrives at a cultural inflection point where consumers actively seek affordable alternatives to luxury items through viral social media campaigns. The phenomenon, known as "dupe culture," has transformed purchasing decisions, prioritising the achievement of high-end aesthetics over brand loyalty or authenticity. The case represents more than a simple trademark dispute; it embodies the broader tension between accessibility and exclusivity that is reshaping the modern retail landscape.
The Legal Battle Unfolds
The comprehensive legal filing reveals the extent of Lululemon's concerns about Costco's alleged infringement of its intellectual property rights. The lawsuit specifically targets six products sold by the wholesale retailer, including the Kirkland Signature 5 Pocket Performance Pant and various jackets and hoodies from brands such as Danskin, Jockey, Spyder, and Hi-Tec. Lululemon's legal team argues that these products constitute trade dress infringement, a complex area of intellectual property law that protects the distinctive visual appearance of products that signifies their source to consumers.
The allegations extend beyond mere visual resemblance to encompass what Lululemon describes as deliberate consumer deception. The company claims that some customers mistakenly believe Costco's products are authentic Lululemon items, while others purchase them precisely because they are nearly indistinguishable from the originals. This dual-pronged approach to consumer confusion, according to the lawsuit, demonstrates the calculated nature of Costco's alleged infringement.
The legal timeline reveals escalating tensions. Lululemon had previously sent a cease-and-desist letter to Costco in November 2024 regarding the alleged violations. Initially, Costco appeared to comply by removing some products from its shelves. However, according to the complaint, the retailer subsequently resumed selling similar items, suggesting a deliberate decision to continue what Lululemon characterises as infringing behaviour despite formal legal warnings.
The lawsuit also addresses precise colour replication, with Lululemon claiming that Costco duplicated its distinctive "Tidewater Teal" shade, a popular colour that has become synonymous with the brand's aesthetic identity. This attention to specific colour matching demonstrates the sophisticated level of alleged copying that extends beyond basic design elements to encompass the precise visual characteristics that make Lululemon products instantly recognisable.
Lululemon's legal demands are comprehensive: monetary compensation for lost profits, alternative royalty payments, and crucially, a court order barring Costco from producing or selling further imitations. They also request removal of any advertisements featuring the allegedly infringing products, aiming to eliminate both the products themselves, and any marketing that might perpetuate consumer confusion.