Josh Gerben Discusses the Lululemon vs Costco Lawsuit with Inc.

Lululemon recently filed a trademark infringement lawsuit against Costco. The lawsuit alleges that Costco is infringing upon multiple Lululemon products.

Inc and Josh Gerben speak about what sets this case apart from other infringement lawsuits. 

“You can have a store brand, and it can look a little like a national brand. ‘This is not Coca-Cola, but it is a cola—and it’s cheaper.’ That’s generally been allowed,” Gerben told me. “But with this dupe, the complaint says that Kirkland has a history of working with the actual brands to make a Kirkland version. So, consumers in some cases think the national brand is affiliated.”

Gerben thinks that the case will most likely end in a settlement, because the lititgation risk is too high for both sides:

If Lululemon were to win, Costco might face an onslaught of new lawsuits from other brands.

If Costco were to win, it would undermine Lululemon’s business model — as well as most other brands’ business models.

“Everybody is trying to fly as close to the sun as they can without burning up,” Gerben said. “The question is just how much can you borrow [before] you’re kind of scorched.”

Source: Murphy Jr., Bill. https://www.inc.com. “Costco Just Got Sued In a Fascinating Lawsuit, and These 6 Words Mattered Most”. 14 July 2025.