Lululemon and Peloton settle their lawsuit about 'copycat' clothing.
After the judge in the Peloton case in New York threw it out, Lululemon's case in California was settled.
Two of North America's biggest names in fitness have settled a lawsuit over allegations of "copycat" sports bras and workout tights.
Lululemon, a "athleisure" brand based in Vancouver, and Peloton, an American company that makes exercise bikes, have settled their patent dispute. A notice of voluntary dismissal was filed in a California district court on Friday.
The details of that deal have not been made known to the public.
Lululemon filed a lawsuit in November, saying that Peloton's Strappy Bra, Cadent Laser Dot Legging, Cadent Laser Dot Bra, High Neck Bra, Cadent Peak Bra, and One Luxe tights were all copies of its own products.
The Lululemon claim said, "Unlike innovators like Lululemon, Peloton didn't spend the time, effort, and money to come up with a new line of products."
"Instead, Peloton copied some of Lululemon's innovative designs and sold copies of Lululemon's products, calling them their own."
Court documents show that the dispute started with a co-branding deal between Peloton and Lululemon in 2016. This deal let Peloton put its logo on some Lululemon products that were sold in Peloton stores.
Peloton said in its own court documents that the arrangement was "burdensome and time-consuming," which is why it ended the partnership and started making "its own private label brand of fitness apparel."
Lululemon, in turn, claimed that Peloton had simply imitated some of its garments. The company that makes yoga clothes sent a letter to Peloton on November 11, 2021, telling it to "immediately stop selling its copycat product."
Lululemon's lawsuit says that Peloton said it needed until Nov. 24 to respond to the letter's accusations.
Instead, Peloton filed its own lawsuit in the Southern District of New York. It said that Lululemon was making "baseless threats" and asked a judge to say right away that Peloton had done nothing wrong.
The settlement in California was announced just one day after a judge in New York threw out Peloton's lawsuit, calling it "an improper anticipatory declaratory judgment action" that was filed to get to court before Lululemon.