Lululemon sues Costco

Canadian company Lululemon accuses Costco Wholesale of infringing its intellectual property by selling imitations of some of its most popular items.

The sportswear manufacturer filed suit in a California court, alleging that Costco sells these imitations under one of its own house brands, Kirkland.

Lululemon is accusing the U.S. multinational retailer of usurping its patents and trademarks, according to Reuters. In a 49-page filing, the Vancouver-based company says it has already tried to stop the deceptions by sending Costco cease-and-desist letters. However, it is now asking a court to intervene.

The products concerned include SCUBA sweatshirts, Define jackets and ABC pants. Lululemon also claims that Costco and some of its affiliated brands use protected names and marketing terms to designate colors and styles similar to its own.

"We take our responsibility to seriously defend and enforce our intellectual property rights and use the legal avenues available to us when necessary," a Lululemon spokesperson told Reuters.

Lululemon is seeking financial damages of an unspecified amount, as well as a court injunction to prohibit the sale of products deemed problematic.

The complaint also cites articles in The Washington Post and The New York Times that link pants, hoodies and coats from both companies, claiming they could be confused due to their similarity.

Many consumers, on social networks and websites such as "Lululemon Dupes", point out striking similarities in quality, style and price.

Companies have the right to legally compete with Lululemon by offering similar products, but only if they respect the latter's protected rights. The complaint therefore distinguishes legal competition from counterfeiting.

In its complaint, Lululemon cited as counter-examples H&M, Aéropostale, Outerknown and Tommy Hilfiger, which offer similar products without breaking the law.

Costco has yet to respond to Lululemon's lawsuit. In the meantime, the majority of the items mentioned in the complaint are no longer available on Costco's website or have been removed from sale, according to Global News.