Lululemon-Costco Dispute Avoids Answering Dupe Trademark Questions

Lululemon’s legal action against Costco over allegedly infringing athletic wear designs ended without producing a substantive ruling on the boundaries of trademark protection for popular product styles. The case had drawn attention from brand owners concerned about “dupe” products that closely mimic established designs.

The dispute centered on whether Costco’s offerings created a likelihood of confusion with Lululemon’s registered marks and trade dress. Proceedings concluded before courts could address the core questions of distinctiveness and consumer perception in the activewear sector.

Industry observers noted that the resolution leaves open important issues regarding the scope of protection for non-traditional marks in fashion and fitness apparel. Brand managers continue to monitor parallel cases for guidance on enforcement strategies against similar goods.

The outcome underscores the challenges of litigating design similarity claims when parties reach settlements or procedural resolutions prior to full adjudication. Companies in the sector are advised to strengthen portfolio documentation and monitoring programs in the absence of new precedent.

Sources: https://www.worldtrademarkreview.com/article/europes-biggest-trademark-decisions-of-the-year-and-two-watch-in-2026 https://www.worldtrademarkreview.com/news-and-analysis