In June 2025, Lululemon initiated a federal lawsuit against Costco Wholesale Corporation, alleging multiple counts of trademark infringement related to Costco’s private-label apparel offerings. The case, filed in the U.S. District Court for the Central District of California, offers a timely and instructive reminder of the breadth and importance of trademark rights. This is particularly relevant with respect to product naming, marketing language, and brand architecture.

Although the dispute arises from the fashion and retail sectors, the legal principles it highlights apply broadly across industries.

The Allegations

Lululemon’s complaint asserts that Costco has infringed upon its registered and common law trademark rights by selling apparel products that allegedly create confusion among consumers regarding their origin or affiliation.

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