Lululemon, Costco Partly Settle IP Lawsuit Over Dupe Jackets

Lululemon Athletica Inc. settled part of its lawsuit accusing Costco-sold activewear of infringing the yoga apparel company’s popular sweatshirt and jacket designs.

Lululemon, Costco Wholesale Corp., and manufacturer Jacques Moret Inc. reached an agreement to resolve infringement claims against outerwear sold under Moret’s Danskin and Jockey brands, according to a joint stipulation filed Feb. 27 in the US District Court for the Central District of California.

Lululemon struck the deal amid pressure from Moret’s bid to cancel two of the company’s design patents covering its bestselling “Scuba” sweatshirts. The settlement resolves Moret’s invalidation claims, too, leaving infringement claims against ...