Lululemon has filed suit against Costco Wholesale Corporation, accusing the retail giant of selling unauthorized apparel “dupes” that infringe on its trademarks, trade dress, and design patents. The complaint, which was filed on June 27 in the U.S. District Court for the Central District of California, alleges that Costco has “chosen to copy rather than compete” by offering lookalike versions of Lululemon’s bestselling products, including its SCUBA® hoodies, DEFINE® jackets, and ABC pants.
In the newly-filed lawsuit, Lululemon claims that Costco “has unlawfully traded upon [its] reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions of [its] well-known trade dress and design patents.” The athleisure giant asserts that Costco’s “infringing products create an improper association with [its] authentic products,” confusing consumers into thinking they are buying legitimate Lululemon items.
>> Costco’s actions, Lululemon alleges, are part of a broader commercial strategy that relies on ambiguity: “One of the purposes of selling ‘dupes’ is to confuse consumers at the point-of-sale and/or observers post-sale into believing that the ‘dupes’ are authentic [Costco] products when they are not.”
The complaint highlights recent media coverage, including a New York Times article, titled, “Are These $20 Costco Pants a Lululemon Dupe? We Investigated”, in which a reporter noted that Costco’s products “looked almost identical” to Lululemon’s when compared side-by-side. Lululemon also cites Costco’s use of “Tidewater Teal” – a color name the brand claims it has used exclusively since 2019 – as evidence of deliberate mimicry. “Products sold under lululemon’s TIDEWATER TEAL™ mark typically sell very quickly,” the complaint states. “There are reddit threads specifically discussing lululemon products sold under the TIDEWATER TEAL™ mark.”

Lululemon accuses Costco of infringing its DEFINE, SCUBA, and ABC trade dress, infringing its SCUBA and TIDEWATER TEAL word marks, infringing its SCUBA design patents, and engaging in unfair competition. It is seeking monetary damages and injunctive relief, arguing that Costco’s “infringing conduct has directly and proximately caused substantial, irreparable injury to [it] and to the business and goodwill,” and that the ongoing sales “leave Plaintiffs without an adequate remedy at law.”
TL/DR: “There are myriad other designs in the athletic apparel industry, none of which necessitate [Costco] copying or imitating” Lululemon’s, the company states, arguing that “some customers incorrectly believe [Costco’s] infringing products are authentic lululemon apparel while still other customers specifically purchase the infringing products because they are difficult to distinguish from authentic lululemon products, particularly for downstream purchasers or observers.”
The case is Lululemon USA Inc. v. Costco Wholesale Corp., 2:25-cv-05864 (C.D. Cal.).