In a high-profile legal move that underscores the ongoing battle against unauthorized goods in retail, Lululemon has filed a federal lawsuit against Costco accusing the wholesaler of selling “knockoff” versions of some of their best-selling activewear. This case, which has drawn national media attention, is a clear reminder of how critical it is for brands to take swift and decisive action against potential trademark infringement and consumer confusion.
According to filings reported by The Wall Street Journal and NBC News, Lululemon alleges that Costco sold copycat apparel products that closely resemble its own designs, infringing on the brand’s intellectual property. The lawsuit includes claims of trade dress infringement, unfair competition under the Lanham Act, patent infringement and violations of the California Unfair Business Practices Act. Lululemon argues that Costco’s actions are likely to confuse consumers and unlawfully capitalize on the strength and reputation of its brand.
This isn’t the first time Costco has been accused of selling alleged “dupes” of high-end brands—but the scale of Lululemon’s brand recognition and the specificity of the claims make this a case worth watching.
What’s at Stake for Brands?
At the heart of this dispute is the integrity of brand identity. When unauthorized sellers profit off of a brand’s reputation by offering lookalike products, the impact can go beyond lost sales.
Cases like this also raise questions about what counts as a “dupe” versus a legally actionable infringement and how courts will interpret protections in an evolving consumer landscape.
Lululemon’s case against Costco is a bold reminder: protecting your brand is not optional. It’s essential. Whether it’s through strategic IP registration, marketplace enforcement or litigation, companies must defend their rights to maintain long-term value.
How Ference & Associates Protects Brands:
If your business is facing similar threats—or if you’re looking to strengthen your IP enforcement program—Ference & Associates is here to help.
We have pioneered strategies to fight fakes across global marketplaces. We help clients monitor unauthorized sellers, file federal litigation and take proactive steps to shut down online counterfeiting operations.