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Investing.com -- Lululemon Athletica Inc (NASDAQ:LULU) stock rose 2.5% following news that the premium athletic apparel maker has filed a lawsuit against Costco Wholesale Corporation (NASDAQ:COST) for allegedly selling knockoff versions of its signature products.
The lawsuit claims Costco is selling unauthorized "dupes" of Lululemon’s popular items including SCUBA hoodies, DEFINE jackets, and ABC pants under its Kirkland brand. Lululemon argues these copycat products could confuse consumers and damage its reputation for high-quality, innovative athletic clothing.
The legal action comes amid a growing trend of "Lululemon dupes" on social media, which the company says Costco is exploiting without clearly differentiating its products from authentic Lululemon merchandise. The athletic apparel maker maintains that Costco’s lower-priced alternatives fail to meet its quality standards.
In the lawsuit, Lululemon seeks to halt Costco’s sales of the alleged copycat items, obtain monetary damages for harm to its brand, and secure acknowledgment that Costco’s actions have misled customers and damaged Lululemon’s reputation.
The company is asserting its legal rights through trademarks, trade dress protections, and patents that cover its distinctive product designs. Investors appear to be responding positively to Lululemon’s aggressive defense of its intellectual property and brand positioning in the competitive athletic apparel market.
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