logo
Lululemon sues Costco for allegedly ripping off clothing designs

Lululemon sues Costco for allegedly ripping off clothing designs

Reuters8 hours ago

June 27 (Reuters) - Canadian athletic wear maker Lululemon (LULU.O), opens new tab sued Costco (COST.O), opens new tab in California federal court on Friday, alleging that the wholesaler sells "knockoff" sweatshirts, jackets and pants that unlawfully copy its products.
The lawsuit said that Costco's "dupes" violate Lululemon's patent and trademark rights in its clothing designs and are likely to confuse potential customers.
Spokespeople for Costco did not immediately respond to a request for comment on the lawsuit.
"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 said in a statement.
The complaint alleged that Costco sells clothes under its label Kirkland that copy Lululemon's Scuba hoodies, Define jackets and ABC pants. It cited articles from The New York Times and The Washington Post calling Costco's products "dupes" of Lululemon's and said that the similar designs could confuse buyers into thinking that Lululemon made them for Costco's private label.
"Indeed, one of the purposes of selling 'dupes' is to confuse consumers" into believing that they are the authentic products, the lawsu it said.
Lululemon requested an unspecified amount of monetary damages and a court order forcing Costco to stop selling the clothes.
The case is Lululemon Athletica Canada Inc v. Costco Wholesale Corp, U.S. District Court for the Central District of California, No. 2:25-cv-05864.
For Lululemon: Ali Razai and Brandon Smith of Morgan Lewis & Bockius
For Costco: attorney information not yet available

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Canadian businesses seek certainty in US tariff war
Canadian businesses seek certainty in US tariff war

BBC News

time23 minutes ago

  • BBC News

Canadian businesses seek certainty in US tariff war

Deal or no deal, what Wes Love wants is Toronto-area business, Taurus Craco, imports machinery from overseas and distributes it across North America, mainly to the United President Donald Trump's shifting tariffs on Canadian products have left him, like many independent business owners, unable to plan for the future."What has been creating indecision in the market is people don't know which way this is going to go," Mr Love told the BBC in June. "And in small businesses, indecision is killer." Taurus Craco was hit hard by the tariffs earlier this year when it was forced to shell out nearly C$35,000 ($25,500, £18,700) because a shipment to the US crossed the border a few minutes after one deadline."It is totally punitive. From a small business perspective, that's more than the cost that we spend on hydro and gas for the entire year," he though Trump paused that tariff a few hours later, Taurus Craco still had to pay. Refusing would mean no longer being allowed to transport its products into the US, Mr Love said."It's like dealing with the mob," he is in a tit-for-tat tariff war with its largest trading partner, faciing a series of levies, in particular on metals and auto. Since taking office in January, Trump has announced a series of import taxes on goods from other countries - arguing they will boost American manufacturing and protect jobs. The ensuing uncertainty has hit Canada's economy and intense talks between the two countries hit a snag on Friday. Prime Minister Mark Carney has called Trump's tariffs "unjust", and said while campaigning for the April election that the "old relationship" with the US is "over". Shortly after winning that election, the prime minister visited Washington DC, taking a more conciliatory message to the White House to launch talks on a new trade and security deal. A 16 July deadline since has been set to hash out that deal, and President Trump said at the recent G7 summit that he was optimistic the two countries could "work something out" on on Friday, Trump said he was cutting trade talks over Canada's digital services tax. "We are hereby terminating ALL discussions on Trade with Canada, effective immediately," he wrote on social has threatened to impose another round of retaliatory tariffs on the US if the talks aren't successful. Mr Love welcomes any prospect of a deal."Give us a set of rules and leave them alone and let us operate within those rules," he said."It's like sport, right? Everybody goes onto the field and you play to a set of rules, but you don't change the rules in the middle of the game." Trade, a sudden exit, Middle East conflict - five takeaways from G7'A stab in the back' - car workers in Canada hit out at US over tariffsThe reality behind Trump's incredible investment claimsWhat tariffs has Trump announced and why? Gaphel Kongtsa, international policy director at the Canadian Chamber of Commerce, said businesses are hopeful an agreement will bring stability. Thus far, they have had to navigate a very fluid landscape, he said, "where seemingly things get increased or decreased or added on without very much clear indication as to why".Canada is hugely reliant on trade with the US, with 75% of its exports heading south, according to Statistics economy has slowed significantly in the first quarter of 2025 as a result of trade war and the ensuing uncertainty - growing only 0.8% between 1 January and 31 March, according to the Canadian Federation of Independent Business (CFIB).It shrank 0.1% over a month in April. A timeline of the tariffs shows what a whirlwind few months it has 1 February, Trump imposed a 25% tariff on most Canadian imports, then suspended them for a month days later. They were re-imposed when that deadline expired, only to be again delayed. Not long after, he granted an exemption on all goods that were compliant with the current North American free trade deal, known as the USMCA. Then in March, the US imposed a global 25% tariff on imported steel and aluminium as well as on imported vehicles. This month, Trump raised the metals tariff to 50%. The manufacturing sector has been in the spotlight when it comes to the tariffs, but the service sector also is affected by the uncertainty, if not by the levies directly. Sam Gupta is the founder and CEO at ElevatIQ, a technology and management consultancy that operates out of Buffalo, New York, and in Gupta said most people don't think about the service sector during a period of uncertainty, calling it the "unloved stepchild" of the economy."The attention goes to all the manufacturing companies and the companies that are directly impacted by the supply chain," he said. Still, services - which encompass everything from finance to tourism - make up a huge proportion of Canada's economy, accounting for the vast majority of its exporters have not been hit as hard as manufacturing, but their outlook and confidence in the market is at the lowest level in years, according to data from the Canadian Chamber of while Ottawa has implemented several measures to provide relief to companies hit by the tariffs - including from funds raised by counter tariffs - the service sector has not received any compensation."We are not even in the conversation," Mr Gupta said. "We don't exist."He said his business is not financially struggling at the moment, but noted that inquiries for his firm's services were "down by 50%". "As far as our understanding goes, not a lot of businesses are thinking about these longterm investments right now. It just, they just are not in the mindset," he said."The biggest fear that we all have right now is, I don't know how long this is going to go. If it is going to be six months, a year, 18 months, we can still survive. But let's say this goes on for like two years, three years then oh, my goodness, it will be, really, really hard."This has been the toughest period for the industry in his 20-year career, as the sector faces a combination of challenges, he said. Mr Gupta recalled how easy it was for him to get a well-paying job early in his career. "Even when I was graduating, we were getting paid like crazy. And we were so arrogant that we would not even pick up calls from recruiters," he said."But now with AI, with tariffs, the economy, everything, everybody that I know is struggling," he said. Statistics Canada reports that 56% of all businesses that export to the US have taken measures to mitigate the impact of than 30% have delayed major investments and expenditures, while 25% sought alternative customers outside the Bank of Canada said on Wednesday that exports to the US dropped by more than 15% in April. Steel and aluminium exports were down by 25% and 11%, and the export of vehicles had fallen by 25%.But despite everything, Mr Love remains said businesses can navigate the challenges as long as the US does not keep changing its trade policy."We're entrepreneurs. We are full of piss and vinegar, as they would say," he said."And so we are doing everything that we possibly can to keep fighting. And I think we will be successful; we just need to know what the ground rules are."

California energy regulator recommends pause on plan to penalize excess oil profits
California energy regulator recommends pause on plan to penalize excess oil profits

The Independent

timean hour ago

  • The Independent

California energy regulator recommends pause on plan to penalize excess oil profits

California should pause Gov. Gavin Newsom 's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___

Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs
Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs

Auto Blog

timean hour ago

  • Auto Blog

Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs

Subaru is not backing down Japanese automaker Subaru is resting on its bestseller, the Forester crossover SUV, to be its north star as it navigates the rough seas caused by the Trump administration's heavy automotive tariffs. According to a new report by Nikkei Asia, Subaru hopes the new Forester SUV will help cushion the blow from steep tariffs and keep its footing in its most important market. At the company's annual shareholder meeting in Tokyo this week, Subaru President Atsushi Osaki made it clear that Subaru will stay committed to its stateside customers. 0:01 / 0:09 Another Chinese automaker is taking the fight to Tesla Watch More 'We'll overcome this by maintaining the U.S. as our main market and balancing it with Japan and Canada,' Subaru President Atsushi Osaki said at the automaker's annual shareholder meeting on June 25. 2025 Subaru Forester Hybrid — Source: Getty Images Japanese cars, American buyers To say that Subaru depends on the United States auto market to survive would be an understatement. According to its figures, more than 70% of Subaru's global sales are in the United States—far more than its Japanese automaking rivals like Honda and Toyota. In fiscal 2024, Subaru sold 662,000 vehicles in the U.S., or 71% of its total global sales of 936,000. Despite this, Subaru's manufacturing situation leaves it vulnerable to Trump's tariffs. Roughly half of Subarus sold in the States are Japanese imports, which means they're now subject to the 25% tariffs imposed by the Trump administration earlier this year. Subaru estimates those tariffs could cost the company $2.5 billion if they do not work proactively, making its $2.79 billion operating profit from the 2024-2025 fiscal year useless. Workers assemble vehicles on the production line at the Subaru Corp. Gunma Yajima Plant in Ota, Gunma Prefecture, Japan. — Source: Getty Images However, the atmosphere around the shareholder meeting suggested that Subaru would heavily rely on the Forester as a savior for the marque. The latest version of the brand's most popular SUV first went on sale in the U.S. in 2024 with a purely gasoline version, followed by a Toyota-developed hybrid model released earlier this year. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Demand is already strong. According to figures from Subaru of America, 15,434 Foresters moved off dealer lots and into the driveways of new owners in May 2025. As of last month, 84,629 Foresters had been sold since the start of this year, a 3.5% year-over-year increase. In addition, Osaki noted that strong Forester sales in Japan could reduce the impact of U.S. tariffs. 'The new Forester is performing extremely well,' Osaki said. He also added that the hybrid version was selling beyond its expectations. The Subaru of Indiana Automotive Inc. (SIA) assembly plant stands in Lafayette, Indiana. — Source: Ty Wright/Bloomberg via Getty Images To help further cushion its tariff impact, Subaru plans to ramp up production in its U.S. factory in Indiana, its only overseas plant that makes finished cars. Starting this fall, Subaru will invest 40 billion yen (~$277 million) to begin producing the new Forester at the plant. The factory currently churns out around 340,000 to 350,000 vehicles annually, but Osaki said it could push past 400,000 with the new investment. Still, shifting more production away from Japan caused concern among shareholders. Subaru's domestic manufacturing operations are centered in Gunma prefecture, where many of its suppliers are also based. Osaki acknowledged the dilemma, noting that boosting U.S. output is impossible without its suppliers. 'It's true that it would improve our ability to deal with the tariffs, but it would be would be difficult without cooperation from all of our suppliers,' Osaki said in response to shareholder questions. 'We need to think about this comprehensively.' Final thoughts Subaru itself is in a precarious position. Last month, it informed dealers that price increases would add an additional $750 and $2,055 to the cost of vehicles, depending on the model and trim. Specifically, Forester buyers got a price hike between $1,075 and $1,600, depending on trim, while Crosstrek and Impreza buyers got hit by a $750 price bump. At the time, Subaru did not explicitly cite the tariffs as the reason behind the price bumps but noted that they are a response to 'current market conditions.' 'The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products,' it said. Fast-forward to now, it seems that Subaru is proactive in recognizing what is working and what is not, though it is tough to tell what the tariff picture will be. According to a new report by Bloomberg, Japan's chief trade negotiator Ryosei Akazawa is on his way to Washington, D.C., to hold his seventh round of trade negotiations with his American counterparts. About the Author James Ochoa View Profile

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store