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Judge Dismisses Peloton’s Lawsuit Against Lululemon Regarding Apparel Infringement

Peloton’s lawsuit against Lululemon, which sought a judgment ruling that Peloton’s apparel did not infringe on Lululemon’s design patents, has been dismissed.

A judge in the Southern District of New York on Thursday granted Lululemon’s request to dismiss Peloton’s complaint, which means litigation is likely to continue between the two parties in accordance with Lululemon’s complaints. According to a statement from a Lululemon spokesperson on behalf of both companies, “Peloton has agreed to phase out certain designs identified in the complaint by Lululemon” to resolve the dispute.

In a Nov. 24, 2021 filing, Peloton asked the court to reject Lululemon’s “baseless” copyright infringement claims, saying they “lack any merit” because of clear differences that distinguish the sets of products, including the brand logos.

The filing was in response to a Nov. 11 cease-and-desist letter from Lululemon, which asked Peloton to stop selling the alleged copycat products. Shortly after Peloton’s filing, Lululemon filed a complaint on Nov. 29 in a California District Court, which accused Peloton of trade dress infringement, false designation of origin, and unfair competition.

In its filing, Lululemon also noted that by asking for until Nov. 24 to respond to the cease-and-desist letter, Peloton gave a “false impression that it needed and would use the additional time to properly respond to Lululemon’s substantive allegation.” Peloton filed its request for rejection of the claims on that deadline.

“Peloton used the delay to secretly prepare its own complaint and preempt the lawsuit that Lululemon had so clearly threatened in its letter,” Lululemon wrote in its complaint.

A Lululemon spokesperson shared a joint statement on behalf of both companies.

“The parties have negotiated a mutually agreeable settlement, and are pleased the matters could be resolved amicably, resulting in dismissal of the pending litigation between them,” the spokesperson said. “Without admissions of any kind, in an effort to resolve the dispute, Peloton has agreed to phase out certain designs identified in the complaint by Lululemon.”

In 2016, Peloton and Lululemon launched a wholesale co-branding partnership wherein Lululemon supplied apparel to Peloton. The items were generally co-branded with both companies’ trademarks and re-sold via Peloton’s showrooms and website. This partnership ended in 2021, after which Peloton launched its own product line.

According to Lululemon, after this partnership ended, Peloton began selling copycat products that infringed on six Lululemon patents. The products in question include Peloton’s Strappy Bra, Cadent Laser Dot Legging, Cadent Laser Dot Bra, High Neck Bra, and Cadent Peak Bra. The complaint also says that Peloton’s One Lux Tight imitates design elements in Lululemon’s popular Align pant.

Lululemon’s complaint accused Peloton of imitating “several of Lululemon’s innovative designs” and selling “knock-offs of Lululemon’s products, claiming them as its own.”

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