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Lululemon fires back at Peloton lawsuit with its own, calls rival a ‘copycat’ -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A Peloton fitness bike is seen following the ringing IPO bells at New York City’s Nasdaq Market, New York City on September 26, 2019. REUTERS/Shannon Stapleton/File Photo

Jonathan Stempel

NEW YORK (Reuters) – Lululemon Athletica (NASDAQ.) Inc has continued its threats to sue Peloton Interactive, (NASDAQ.) Inc for copycat products found in Peloton Interactive’s latest clothing line.

Peloton, a Canadian company that makes athletic clothing sued Peloton in Los Angeles federal Court. They sought triple damages because Peloton allegedly “willfully” violated six of its design patents.

Lululemon filed its lawsuit five days after Peloton brought its own case https://www.reuters.com/business/retail-consumer/peloton-sues-lululemon-dispute-over-new-apparel-line-2021-11-26 in Manhattan federal court, seeking a declaration that Lululemon’s claims had no merit.

Peloton’s lawyer and Peloton did not respond immediately to our requests for comment.

The dispute arose from Peloton’s launch https://www.onepeloton.com/press/articles/peloton-apparel-launch in September of a private-label apparel brand, following the end of the companies’ five-year co-branding relationship.

Lululemon claimed five Peloton bras and leggings for women – Strappy Bra and High Neck Bra; Cadent Peak Bra; Cadent Laser Dot Bra; Cadent Laser Dot Leggings; and Cadent Peak Bra and Strappy Bra – violated its patents.

Peloton’s One Lux Tight product is also a knockoff its Align pants (NASDAQ:), which are one of the company’s best-selling products.

Peloton was “intentional to closely mimic Lululemon’s proprietary designs, pass off its products as Lulemon’s high-quality products to misappropriate that immense goodwill which Lululemon spent tremendous time, effort and expense to cultivate,” Lululemon stated in its complaint.

Peloton was threatened by the Vancouver-based firm in Nov. 11, unless they stopped selling the knockoffs.

Peloton argued in its suit that customers will not be able to tell the difference between their products. Lululemon was not unique enough to warrant patent protection.

New York-based Peloton has sought to diversify its revenue streams, after sales growth for its bikes and treadmills slowed https://www.reuters.com/business/peloton-plunges-loss-bike-price-cut-higher-costs-2021-11-04 as more people received COVID-19 vaccines and stayed home less often.

Lululemon Athletica Canada Inc. is the defendant. Peloton Interactive Inc , U.S. District Court Central District of California. 22-099252 and Peloton Interactive Inc v Lululemon Athletica Canada Inc. U.S District Court, Southern District of New York. 21-10071.

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