Peloton loses lawsuit against Lululemon over new apparel line By Reuters

By Jonathan Stempel

NEW YORK (Reuters) – A U.S. judge on Thursday dismissed Peloton Interactive (NASDAQ:) Inc’s lawsuit seeking a declaration it did not infringe Lululemon Athletica (NASDAQ:) Inc’s patents in developing its own line of apparel.

Peloton had sued Lululemon last Nov. 24 in Manhattan federal court, 13 days after Lululemon sent a cease-and-desist letter threatening to sue the exercise bike maker unless it stopped selling five women’s bra and legging products.

Lululemon followed through on its threat and sued Peloton on Nov. 29 in Los Angeles federal court, seeking triple damages for Peloton’s alleged willful infringement of six design patents in creating its “copycat” clothing line.

In dismissing Peloton’s lawsuit, U.S. District Judge Andrew Carter in Manhattan called the case an improper “anticipatory action,” saying Peloton reneged on an agreement it made with Lululemon to potentially resolve the dispute out of court.

The decision likely means the litigation will resume in Los Angeles, after being put on hold in March pending resolution of the Manhattan case.

A spokesman for Peloton declined to comment. Lululemon did not immediately respond to requests for comment.

The dispute arose from New York-based Peloton’s September 2021 launch of a private-label apparel brand, following the end of the companies’ five-year co-branding relationship.

Peloton’s alleged infringing products included Strappy Bra, High Neck Bra, Cadent Peak Bra, Cadent Laser Dot Bra and Cadent Laser Dot Leggings.

Lululemon, based in Vancouver, British Columbia, also called Peloton’s One Lux Tight a knockoff of its Align (NASDAQ:) pants, one of its all-time bestsellers.

The cases are Lululemon Athletica Canada Inc v Peloton Interactive Inc , U.S. District Court, Central District of California, No. 21-09252; and Peloton Interactive Inc v Lululemon Athletica Canada Inc, U.S. District Court, Southern District of New York, No. 21-10071.