ARTICLE
12 August 2025

Lululemon vs. Costco: When Fashion Meets IP Law

E
ENS

Contributor

ENS is an independent law firm with over 200 years of experience. The firm has over 600 practitioners in 14 offices on the continent, in Ghana, Mauritius, Namibia, Rwanda, South Africa, Tanzania and Uganda.
Whether you swear by your Kirkland activewear or whether you are a Lululemon loyalist, this legal battle is stretching deep into the world of Intellectual Property.
South Africa Intellectual Property

Whether you swear by your Kirkland activewear or whether you are a Lululemon loyalist, this legal battle is stretching deep into the world of Intellectual Property.

Background

Lululemon, the Canadian athleisure giant known for its sleek design and premium pricing, has filed a 49-page lawsuit in California against Costco. The claim? That Costco has been selling low-cost "dupes" of Lululemon's Scuba hoodies, Define jackets, and ABC men's pants, without the necessary authorisation. Some of these knockoffs reportedly sell for under USD20, compared to the USD128 price tags of the originals.

Why does IP protection matter in fashion?

Fashion brands rely on a mix of trade marks, design patents, and trade dress rights to protect their brand identity and unique look. Unlike Europe, where design protection is more straightforward, U.S. law makes it notoriously difficult to safeguard the "look and feel" of clothing. Lululemon has therefore turned to a combination of legal claims, including design patent infringement, trade dress infringement, and unfair competition under the Lanham Act.

The dispute

1662006a.jpg

* Lululemon logo

Lululemon accuses Costco of profiting off "source confusion." Their complaint? That some customers may believe these Kirkland-branded items are somehow made or approved by Lululemon, especially since Costco often uses the same manufacturers behind big brands. The use of similar product names and colour descriptions (like "Tidewater Teal") is also flagged as a tactic that blurs the line between original and imitation.

Lululemon is not just requesting money. They want a jury to stop Costco from selling the alleged dupes and to remove any marketing tied to the infringing products.

What's fuelling this?

Enter dupe culture. Influencers and Gen Z shoppers on platforms like TikTok have embraced the idea of getting "the look for less." Hashtags like #LululemonDupe have racked up millions of views. While this drives hype, it also blurs consumer perception, causing a major a headache for original creators trying to protect their designs.

The conclusion

This is more than a fashion feud. It's a test case for how brands like Lululemon can protect their products in an era where design copying is rampant and "dupes" are a social trend. If Lululemon wins, it may pave the way for stronger IP enforcement in the U.S. fashion industry.

Will Costco stretch or snap under the pressure? We will be watching this one closely!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More