• Lululemon is suing Costco for allegedly infringing on intellectual property rights by producing similar clothing items at significantly lower prices.
• The lawsuit claims Costco’s Danskin and Kirkland brand clothing too closely resembles Lululemon’s Scuba, Define, and ABC lines.
• Lululemon is seeking damages for lost profits and a halt to Costco’s production and marketing of the allegedly copied items.

The high-end athleticwear brand Lululemon is suing the member-only warehouse Costco for producing and selling clothing that looks like their own at slashed prices.

Lululemon filed its lawsuit against Costco on Friday, June 27, alleging that the company infringes on intellectual property rights. Specifically, Lululemon claims Costco is stealing its SCUBA hoodies and sweatshirts, Define jackets, and ABC pants, using the designs for its own Kirkland brand.

“As an innovation-led company that invests significantly in the research, development and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary,” a Lululemon spokesperson told USA TODAY.

Costco did not immediately respond for comment when contacted by USA TODAY on July 1.

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A closer look at the clothing

Lululemon alleges that an “ordinary observer” would not be able to tell the difference between the two brands.

The lawsuit compares Lululemon’s Scuba Hoodie to Costco’s Danskin Half-Zip Pullover Front. For a price comparison, the Scuba Hoodie costs between $99 and $118 on the Lululemon website and the Danskin pullover costs about $8 on the Costco website. Both hoodies feature a half-down zipper, front pocket and are available in a similar teal color, as outlined in the lawsuit.

Lululemon also alleges that Costco has “duped” its ABC Pants with its Kirkland 5 Pocket Performance Pant. The ABC Pants are around $128 on the Lululemon website and the Kirkland pants are around $10 on the Costco website. Both pairs of pants are made from synthetic, stretchy material.

In addition to the articles of clothing, Lululemon alleges that Costco stole its “Tidewater Teal” color, a popular color offered among several of Lululemon’s clothing items. However, no products offered in the color “Tidewater Teal” appear on the Costco website.

What is Lululemon seeking?

As outlined in the lawsuit, Lululemon wants Costco to pay “actual damages in the form of lost profits” or other damages that are at least equivalent to the royalties that would have been made from Lululemon’s patent.

Lululemon also requests that Costco agree to cease manufacturing of products similar to the Scuba hoodies and sweatshirts, Define jackets, and ABC pants and remove any marketing materials that contain such products.

USA TODAY is mentioned once in the lawsuit as covering Lululemon products but is not involved a party in the lawsuit.

Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at [email protected].