A deep dive into the Lululemon Costco lawsuit over alleged lookalike leggings. Understand the claims, the pants in question, and what it means for shoppers.
Why the athleisure giant is suing the wholesale king over “confusingly similar” leggings, and what it means for your next athleisure purchase.
The battle for your yoga pants has officially entered the courtroom. In a move that sent ripples through the retail and legal worlds, premium activewear brand Lululemon filed a lawsuit against wholesale behemoth Costco. This isn’t just a simple dispute; it’s a high-stakes clash over brand identity, intellectual property, and the multi-billion-dollar athleisure market. The central issue revolves around allegations that Costco has been selling leggings that are “confusingly similar” to Lululemon’s patented designs. For consumers accustomed to finding brand-name bargains in Costco’s aisles, the Lululemon Costco lawsuit raises critical questions about authenticity, value, and brand loyalty.
This deep dive will unpack everything you need to know about this landmark case. We’ll explore:
- The specific legal claims Lululemon is making.
- The difference between a “dupe” and an alleged infringement.
- The potential consequences for both companies and you, the consumer.
- The broader context of brand protection in the fast-fashion era.
The Core of the Conflict: What Sparked the Lululemon Costco Lawsuit?
At its heart, the lawsuit, filed in the U.S. District Court for the Central District of California, accuses Costco of selling leggings from private-label brand Kirkland Signature that illegally copy patented designs from Lululemon. Specifically, Lululemon’s complaint centers on its best-selling Align pants, renowned for their buttery-soft Nulu™ fabric, high-rise waistband, and distinctive V-shaped seam on the back.
Lululemon claims that Costco’s version—the Kirkland Signature Ladies’ Brushed Legging—mimics these unique design elements so closely that it intentionally misleads customers into believing they are associated with, or are an authorized, more affordable version of, Lululemon’s products. The company argues this not only poaches sales but also dilutes the premium value and reputation it has spent decades building.
Deconstructing the Allegations: More Than Just Similar Leggings
To fully grasp the Lululemon Costco lawsuit, we need to understand the key legal arguments. It’s not just about one pair of pants looking like another; it’s a multi-pronged intellectual property complaint.
Design Patent Infringement
Unlike a utility patent, which protects how an item works, a design patent protects how an item looks. Lululemon holds several design patents for its apparel, including specific seam placements, pocket shapes, and waistband constructions. The lawsuit cites these patents, claiming that the Kirkland leggings are a direct copy of the ornamental design of Lululemon’s Align franchise. Proving this will require Lululemon to show that an “ordinary observer” would be deceived by the similarity.
Trade Dress and Brand Identity
Trade dress is a form of intellectual property that refers to the overall look and feel of a product that signifies its source to consumers. Think of the iconic shape of a Coca-Cola bottle. Lululemon argues that the total visual appearance of its Align pants—the combination of the fabric feel, seam style, and high-waist fit—constitutes a recognizable trade dress. By allegedly copying this, Costco is diluting the uniqueness of Lululemon’s most valuable assets.
False Advertising Claims
The lawsuit also takes aim at how the products are marketed. Lululemon contends that by placing a lookalike product in the market, Costco creates an “implied” and false association. Shoppers might purchase the Kirkland leggings thinking they are getting a Lululemon-quality product for less, which Lululemon argues is a deceptive practice.
Why This Lawsuit Matters (Beyond the Courtroom)
This case is a bellwether for the retail industry, touching on consumer trends and business strategy.
Protecting a Premium Brand Image
For Lululemon, this lawsuit is an essential defensive move. The brand charges 98−98−128 for its most popular leggings because it has cultivated an image of exclusivity, quality, and innovation. When a mass-market retailer like Costco offers a visually similar product for a fraction of the price (often under $20), it threatens to erode the public’s perception of Lululemon’s value. Winning this lawsuit would send a clear message: our designs are legally protected assets.
The Rise of the “Dupe” Culture
The term “dupe” (short for duplicate) has exploded on social media platforms like TikTok. Influencers and everyday shoppers actively seek out and promote cheaper alternatives to high-end products. While finding a good-quality, affordable alternative is one thing, Lululemon’s lawsuit draws a line in the sand, arguing that the Kirkland leggings cross from being an “inspired-by” dupe to a direct and illegal infringement. This case could set a new precedent for how brands combat the dupe phenomenon.
Implications for Shoppers and Retailers
- For Consumers: A Lululemon victory could mean fewer near-identical alternatives on the market. It might reinforce the idea that if you want the specific look and feel of a patented design, you have to pay the premium price.
- For Retailers: Other wholesale and fast-fashion retailers will be watching closely. A successful suit by Lululemon could embolden other premium brands to take similar legal action, forcing retailers to be more careful in how they design and market their private-label goods.
A History of Brand Protection: Lululemon Isn’t New to This
This isn’t Lululemon’s first legal rodeo. The company has a well-documented history of fiercely protecting its intellectual property.
- 2012: Lululemon sued Calvin Klein for infringing on the design patent of its Astro yoga pants. The case was settled out of court.
- 2017: The brand sued Under Armour for allegedly copying the design of a sports bra, a case that was also settled.
- 2021: In a high-profile case, Lululemon sued Peloton over its apparel line, claiming five of Peloton’s designs (including leggings and a sports bra) infringed on its patents.
This pattern demonstrates a consistent and aggressive legal strategy to defend its market position, making the Lululemon Costco lawsuit a logical next step in their ongoing brand protection efforts.
For more on brand strategy, check out our post on [Building a Memorable Brand Identity]. To understand the legal side better, Harvard Business Review offers an excellent primer on defending against trademark infringement. If you are curious about similar products, you can explore our AJH World Business and Finance Blog: Your Ultimate Guide to Financial Mastery in 2025.
Lululemon is suing Costco, claiming that Costco’s Kirkland Signature leggings are illegal copies of Lululemon’s patented Align pants designs. They argue this infringes on their patents and trade dress, confuses consumers, and damages their brand’s premium reputation.
No, this is a crucial distinction. The lawsuit does not allege they are counterfeit (i.e., illegally using the Lululemon logo). It alleges that the leggings are lookalikes that illegally copy Lululemon’s unique, patented designs. They are sold under the Kirkland Signature brand.
The lawsuit primarily centers on designs related to the immensely popular Lululemon Align High-Rise Pant, which is known for its buttery-soft feel and specific seam design.
As of late 2023, the product’s availability may vary by location and online. Costco may choose to pull the product pending the outcome of the litigation, but this can change. The lawsuit asks the court to block Costco from selling the product permanently.
Yes. Lululemon has a history of suing competitors for alleged patent infringement. Notable past defendants include Calvin Klein, Under Armour, and most recently, Peloton, showing a consistent strategy of protecting their designs.
The Lululemon Costco lawsuit is far more than a corporate squabble; it’s a defining case study in modern retail, intellectual property, and brand value. On one side, you have Lululemon fighting to protect the innovative designs that justify its premium price tag. On the other, you have Costco, a champion of consumer value, delivering products that meet customer demand for affordable quality.
The key takeaways are clear: design patents and trade dress are powerful tools for premium brands, the “dupe” culture has now moved from social media to the courtroom, and the outcome of this case will have lasting effects on how private-label products are designed and sold. As this legal battle unfolds, it will continue to highlight the delicate balance between inspiration and infringement in the fashion industry.
What are your thoughts on this lawsuit? Do you think brands have a right to protect their designs so fiercely, or do you support affordable alternatives? Share your opinion in the comments below!
“Md Jewel Hossain“ is a senior retail analyst and content strategist with over 10 years of experience covering e-commerce, branding, and consumer law. She’s passionate about breaking down complex business news into easy-to-understand insights for shoppers and professionals alike.
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