Peloton Sues Lululemon Following Feud Over its New Apparel Line

Peloton Sues Lululemon Following Feud Over its New Apparel Line

Peloton (NASDAQ: PTON) sued Lululemon last Wednesday after the athletic apparel company threatened legal action against the fitness company earlier this year. Lululemon claimed that five of Peloton’s women’s bra and legging products infringed six of its design patents. Peloton says the claims “lack any merit.”

“At Lululemon we are known for our product innovation and iconic design,” Lululemon said in a statement on Friday. “We will defend our proprietary rights, to protect the integrity of our brand, and to safeguard our intellectual property.”

The lawsuit comes a couple of weeks after Peloton launched a huge marketing campaign to promote its very own apparel line. The fitness company has slowly stopped selling apparel labels on its website and thus created its own brand of leggings, sports bras, and workout tanks for women and men.

The athleisure line could help Peloton rely less on its exercise equipment, a positive following the decrease in sales growth as people receive more Covid-19 vaccines and continue to venture outdoors.

In a letter, Lululemon’s attorney disclosed that the company would be suing Peloton unless it stopped selling its new line of apparel. However, Peloton argues that its designs are easy to tell apart and that Lululemon’s designs were far too “obvious” to warrant patent protection. 

“On top of the numerous clear and obvious differences in design, Peloton and Lululemon’s brands and logos are also distinctive and well-recognized, making confusion between products a virtual impossibility,” Peloton said.

Peloton shares rose 6% Friday, following concerns of the new coronavirus variant, and how it could push people to stay at home longer.

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