Peloton Agrees to Phase Out Some Apparel Designs as it Reaches a Mutually Agreeable Settlement with Lululemon
Peloton and Lululemon say they have resolved litigation issues stemming from claims that Peloton infringed on Lululemon’s patented apparel designs
Peloton and Lululemon are ready to move on, having reached a mutually agreeable lawsuit settlement stemming from accusations of patent infringement. Last fall, Lululemon, the popular athleisure company, accused the connected fitness brand of patent infringement by developing a women’s apparel line.
Peloton has agreed to eliminate designs that Lululemon had objected to in its lawsuit as part of the settlement. While Peloton has not admitted any wrongdoing, both fitness-related brands are in agreement and eager to move forward.
“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 companies stated, according to Reuters.
The terms of the settlement have not been disclosed.
To recap, last fall, the Canadian-based athletic wear company that put leggings on the map, accused Peloton of infringing on its intellectual property rights in six of its patented apparel designs. Lululemon issued a cease-and-desist letter to Peloton, threatening to file a lawsuit. Peloton responded by claiming that Lululemon’s designs were not unique enough to warrant patent protection and launched a legal preemptive attack. Peloton’s strategy included filing its own suit in a Manhattan federal court, requesting that the court declare that it had not infringed on any patents, which the judge recently dismissed.
Lululemon took issue with Peloton for not putting in the effort to create its own original product line and, as promised, filed a lawsuit claiming that the interactive fitness company infringed on its intellectual property rights regarding six of its patented apparel designs. Lululemon claimed that Peloton’s Strappy Bra, High Neck Bra, Cadent Peak Bra, Cadent Laser Dot Bra, Cadent Laser Dot Leggings, and One Lux Tight infringed on its patents. As PeloBuddy points out, many of the Peloton pieces listed in the lawsuit are still available for purchase in the apparel section of Peloton’s site. It is unclear when the athleisure pieces will be officially phased out.
At one time, the two famous fitness brands enjoyed a co-branding relationship. More recently, Peloton announced a partnership with Dick’s Sporting Goods, where the connected fitness hardware will be sold at over 100 Dick’s retail locations and on Dicks.com.
Lululemon recently celebrated a 29% increase in revenue to $1.87 billion, with shares of the activewear company popping after exceeding Wall Street expectations.
