Walk down any street near Times Square in New York City and you'll be offered the opportunity to purchase Rolex watches, Louis Vuitton handbags, and Nike sneakers at incredibly low prices. The catch, of course, is that none of the items are genuine. Referred to as knockoffs, they illegally mimic the intellectual property of the original manufacturer. That street-bought Chanel perfume might smell almost the same and fool your friends back home, but it's not the real thing.
While retail giant Costco isn't being accused of selling pairs of Align No Line High-Rise Pants from the back of a van on 46th Street, the company is the target of a lawsuit filed by luxury fitness leaders Lululemon on June 27, 2025. Lululemon claims that Costco, through its popular Kirkland Signature brand, has been producing "dupes" of their clothing designs and selling them at a greatly reduced rate.
Alleging multiple instances of trade dress and trade mark infringement, along with violations of the California Unfair Business Practices Act, Lululemon is seeking unspecified damages along with injunctions prohibiting Costco from selling the so-called "#LululemonDupes" through their Kirkland Signature brand. If history is any indicator, defending their design patents is going to be a tough workout.
Sweating in Style
Founded in 1998, Lululemon has positioned itself as the gold standard of the high-end athleisure style of workout gear. With yoga pants clocking in at over $100, it posted revenues of over $10 billion in 2024. Due to the mix of fashion and athleticism in their products, Lululemon is one of the biggest fish in the sportswear pond.
Costco Wholesale consists of a members-only chain of over 625 big-box style stores. With over 300,000 employees, Costco ranks as one of the top 25 largest employers in the United States. Part of Costco's success is attributed to their Kirkland Signature products. Kirkland Signature is Costco's private-label brand, offering items that are similar to and often significantly less expensive than those with brand names. Many are produced by other companies contracted by Costco. With over 550 items available, products under the Kirkland Signature label range from olive oil to vodka to ... clothing.
Costco labels all of its Signature brand goods with the Kirkland logo.
This Looks Good! Too Good!
In the lawsuit, Lululemon accuses Costco of cashing in on the success of their apparel company by copying several of their most popular articles of clothing and selling the knockoffs at greatly reduced prices through their Kirkland Signature brand. Alleging violations of their design patents, the dozen claims in the lawsuit demand damages and for Costco to cease the sale of the workout gear they claim to be dupes.
Some of the items Lululemon identifies as what they consider to be deliberate knockoffs by Costco are:
- Define jackets
- Scuba dresses, hoodies, sweatshirts, and full-zip jackets
- ABC dresses and pants
In some instances, the products sold by Lululemon are priced five times higher than the alleged dupes offered under the Kirkland Signature brand.
Proving a design has been deliberately violated by a copycat is not always an easy task in a courtroom. Lululemon has to convince a jury that the Kirkland Signature products are so similar to their designs that they're intended to make a customer believe they're purchasing an intentional knockoff. It's an extremely subjective standard to prove.
Regardless of whether Lululemon is successful against Costco and Kirkland Signature, taking them to court can also serve another purpose. By showing their willingness to defend their intellectual property, they may deter other copycats from trying to make dupes.
Related Resources
- Avoiding Infringement Problems (FindLaw's Learn About the Law)
- Elements of a Design Patent Application (FindLaw's Intellectual Property Law)
- Public Domain: When Can You Lift Content? (FindLaw's Law and Daily Life)
