Peloton, Lululemon Settle Patent Infringement Lawsuit Over Women’s Apparel Line

Peloton Interactive Inc has settled a lawsuit in which Lululemon Athletica Inc accused the exercise bike manufacturer of infringing on its patents by developing a line of women's apparel.

Source: Reuters | Published on October 3, 2022

Working out on Peloton

Peloton has agreed to phase out "certain designs" that Lululemon had objected to in a lawsuit without admitting wrongdoing, the companies said in a joint statement on Friday.

"The parties have negotiated a mutually agreeable settlement and are pleased that the matters could be resolved amicably, resulting in the dismissal of the pending litigation between them," the companies said.

Lululemon filed a lawsuit against Peloton in Los Angeles on November 29th, accusing it of infringing on six design patents by selling five "copycat" bra and legging products: Strappy Bra, High Neck Bra, Cadent Peak Bra, Cadent Laser Dot Bra, and Cadent Laser Dot Leggings.

The lawsuit came just five days after Peloton sued Lululemon in Manhattan, seeking a declaration that it had not infringed on any of Lululemon's patents after the Canadian company threatened to sue.

U.S. On Thursday, District Judge Andrew Carter dismissed Peloton's case, paving the way for Lululemon's case in Los Angeles to proceed.

The dispute arose as a result of Peloton, based in New York, launching a private-label apparel brand in September 2021, following the end of the companies' five-year co-branding relationship.

Peloton's One Lux Tight was also labeled a knockoff of Lululemon's popular Align pants by the Vancouver-based company.

Peloton has struggled to keep up with declining demand for its bikes and at-home workouts as people return to offices and gyms. Its stock price has dropped by more than 90% since last October.

Peloton announced on Thursday that it will begin selling its equipment at Dick's Sporting Goods, the first non-Peloton store to carry the equipment.

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