Will Lululemon’s Lawsuit Against Costco Backfire?

Lululemon says Costco’s athleticwear copies its designs, but the lawsuit could backfire.

Athleisure brand Lululemon is suing Costco for selling what it claims are knockoffs of its best-selling apparel like the Scuba hoodie, Define jacket, and ABC pants. The lawsuit accuses Costco of capitalizing on Lululemon’s brand recognition by offering similar-looking designs at a fraction of the price, some as low as $8.

But the bigger question isn’t whether Lululemon has a legal leg to stand on, it’s whether it’s worth the fight at all.

Why Dupe Lawsuits Almost Never Stick

Fashion dupes are everywhere, and for the most part, they’re perfectly legal. That’s because copyright law offers very limited protection for clothing. Unless you’re copying a logo, a protected print, or a patented detail, most lookalikes skate by. Courts typically treat fashion as functional and therefore not covered by standard copyright protections.

So… Does Lululemon Actually Have a Case?

It’s hard to tell, but some legal experts have their doubts. Lululemon is banking on something more specific than “that looks like ours.” The lawsuit cites actual design patents and trade dress violations. The company’s legal team points to side-by-side comparisons and argues Costco’s products are confusingly close, to the point that shoppers might think they’re real Lululemon.

Lululemon submitted court documents comparing their Scuba jacket to Danskin’s Half-Zip Hoodie. Source: US District Court of the Central District of California.
Another court document, this one displays Lululemon’s ABC pants and Costco’s Kirkland 5 Pocket pants side by side. Source: US District Court of the Central District of California.

Still, that’s a high bar. One legal expert already called out Lululemon’s claim over a “triangle shape in the crotch region” as unlikely to hold up. And the fact that many of these Costco products are sold under totally different brand names like Danskin, Spyder, or Jockey further weakens the argument for consumer confusion.

But even if they’re technically right, lawsuits regarding knockoffs are hard to win. A judge could rule that the design elements in question may be ruled too functional to be protected under copyright laws. And even if Costco’s products are similar, branding differences might be enough to dodge the confusion claim.

Is Suing Costco Worth It?

Costco is not some small, independent label. They’re a major, mainstream retailer known for value. Lululemon’s claims against the retailer are flimsy at best and going after them could be a PR disaster for the athletic wear brand.

Dupe culture is no longer frowned upon. It’s normalized, social-media-friendly, and often seen as a rebellion against overpriced brands. Many shoppers are turning to knockoffs because they can’t justify the price tag. When a Costco hoodie looks like a $128 Lululemon staple and costs less than $20, it’s not hard to see why people will choose the knockoff.

So while Lululemon may be trying to “protect the brand,” they could just as easily come off as out of touch. Or worse, as a bully trying to weed out competition.

If Lululemon Wins, What Will Happen to Dupe Culture?

Let’s say Lululemon wins this case. Then what?

It wouldn’t spell the end of all fashion dupes but it could set a new legal precedent. If a court sides with Lululemon based on patents and trade dress violations, other brands might be emboldened to do the same. It would send a message that it isn’t safe to sell lookalikes if they’re too close to the real thing.

But it wouldn’t be a total crackdown. Future cases would still need to prove specific IP violations and confusion, which is not easy. Retailers like Costco might rethink how they design and market these products.

A legal win for Lululemon could affect what kind of content is shared on social media. Platforms like TikTok and Instagram have helped turn dupe shopping into a full-blown subculture. If Costco loses this lawsuit, it could force influencers who promote dupes to back off. Social media platforms could also crack down on content featuring dupes.

Then again, it could go the other way. If Lululemon is seen as overreaching, dupe culture might become even more popular. Shoppers could double down, especially those who view high fashion as elitist or overpriced. The lawsuit might not scare anyone. Instead, it might validate the reasons why people are buying dupes in the first place. Lululemon could alienate potential customers. Especially if they feel like the lawsuit is nothing more than an attempt at gatekeeping and maintaining their place as a popular athleisure brand.

What Happens Next?

Costco has 21 days to respond to the lawsuit. For now, everyone is waiting for Costco to make the next move.

Lululemon’s lawsuit against Costco could end up being a turning point for how brands handle lookalikes. If they win, it might give them a stronger legal tool to go after retailers selling lookalikes. But if Lululemon loses, they’ll prove how out-of-touch premium brands can seem in an age where most people are struggling to stay afloat financially.

At a time when shoppers are prioritizing value over labels, going after dupes could hurt Lululemon more than it helps. The court of public opinion is watching and it’ll be interesting to see what happens next.

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