What the Lululemon vs. Costco Lawsuit Is
In June 2025, Lululemon filed a federal lawsuit against Costco in the Central District of California, accusing the warehouse retailer of selling unauthorized copies, or "dupes," of several signature Lululemon designs under its Kirkland Signature label. The products named in the dispute include items modeled on the Scuba hoodie, the Define jacket, and the ABC pant.
The case sits at the intersection of fashion and intellectual property law. Lululemon argues that its designs are protected and that Costco is trading on the brand reputation and consumer confusion fueled by social media "dupe" culture. This is a dispute between two companies over design rights, not a consumer class action over a defective or mislabeled product.
The Legal Claims
Lululemon claims include design patent infringement over ornamental product features, trade dress violations tied to the distinctive look and feel of its products, and trademark infringement, including the use of names like "Scuba" and even color designations such as "Tidewater Teal." It also alleges unfair competition under California law, arguing that Costco profits from consumer confusion.
Costco position, in broad terms, is that look-alike features can reflect broader industry trends rather than protected, distinctive elements. Trade dress and design-patent cases in fashion are notoriously fact-specific, turning on how distinctive and non-functional the claimed features are. The outcome could influence how courts treat fashion lookalikes more generally.
Why There Is Nothing for Shoppers to Claim
Because this is an intellectual property dispute between Lululemon and Costco, there is no settlement fund or claim process for consumers. Shoppers who bought either company products are not class members and are not owed money as a result of this case. The remedies Lululemon seeks, such as stopping sales and recovering profits, run between the companies.
This is a common point of confusion with high-profile brand lawsuits. A case can dominate headlines and search interest without creating any consumer payout. If you bought a Kirkland item or a Lululemon item, this lawsuit does not entitle you to compensation.
Status in 2026
By early 2026, reporting indicated that Lululemon and Costco had partly settled the dispute, resolving claims tied to certain dupe items such as specific jackets, while other aspects of the litigation continued. Partial settlements are common in IP cases, where parties may resolve some products or claims while contesting others.
The practical takeaway is that the matter has been narrowing through negotiation rather than producing a sweeping court ruling. Anyone following the case should look for confirmation of which specific claims were resolved and which, if any, remain active, since the details determine the precedent it sets.
Why This Case Matters Beyond the Two Companies
The dispute has become a reference point in the wider debate over "dupe culture," where social media openly celebrates lower-priced lookalikes of premium goods. For brands that invest heavily in design, the case tests how far trademark, trade dress, and design-patent law reach when a competitor sells similar-looking products at a fraction of the price.
For consumers, the lasting significance is less about a payout and more about availability and pricing: outcomes in cases like this shape what retailers feel free to sell. Following it is useful as market and legal context rather than as a path to compensation.
How to Get Legal Help
If you believe you qualify based on the eligibility criteria described above, the next step is a free consultation with an experienced attorney. Most plaintiff-side attorneys handling these cases work on contingency, meaning you pay nothing unless your case results in a recovery. Bring any relevant documentation, including receipts, correspondence, medical records, or other evidence of the harm you experienced.
To stay current on case developments, claim deadlines, and settlement news, bookmark this page and subscribe to LawsuitWatch alerts. Coverage is updated as new court filings, settlement announcements, and eligibility changes are made public.
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Lululemon vs. Costco Lawsuit: The "Dupe" Trademark Fight Explained: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
Can I get money from the Lululemon Costco lawsuit?
No. This is an intellectual property dispute between Lululemon and Costco, not a consumer class action. There is no settlement fund or claim process for shoppers, and buying either company products does not entitle you to compensation.
What is Lululemon accusing Costco of?
Selling unauthorized copies, or "dupes," of signature designs such as items modeled on the Scuba hoodie, Define jacket, and ABC pant under the Kirkland Signature brand. The claims include design patent infringement, trade dress and trademark infringement, and unfair competition.
Where and when was the case filed?
Lululemon filed the lawsuit in June 2025 in the U.S. District Court for the Central District of California.
Has the case settled?
By early 2026, reporting indicated the companies had partly settled, resolving claims tied to certain items while other aspects of the litigation continued. Partial settlements are common in intellectual property cases.
Why does this lawsuit matter?
It is a closely watched test of how trademark, trade dress, and design-patent law apply to fashion "dupes" sold at lower prices. The outcome could influence what retailers feel free to sell and how courts treat lookalike products.