When Peloton and Lululemon broke up—that is, legally terminated their existing cobranding relationship—it seemed like a polite, conventional split between two retail operations that wanted to go their own ways. But just a few weeks later, Lululemon fired off a cease-and-desist letter to its former partner, insisting that it stop selling five products that it claimed were copied from Lululemon’s existing designs. The breakup just got uglier from there. Peloton brought in outsiders, asking a U.S. district court to prevent Lululemon from spreading such allegations. Not to be outdone, Lululemon filed formal suit, officially alleging that Peloton had stolen designs for several leggings, tights, and sports bras, introduced only after the partnership ended. This description might sound similar to the breakup of a personal relationship, when each partner tries to get their “couple friends” to take their side, but the implications are far more wide-ranging, especially in the massive yoga and exercise market. The reputations of both companies (each of which has made some controversial moves in the past that attracted negative press) are central to their value and ability to appeal to consumers. If one of them cheated, or the other lied about that cheating, consumers are likely to pick sides and cut the offending party out of their lives altogether.

Source: Johnny Diaz, “Lululemon Sues Peloton, Accusing it of Patent Infringement,” The New York Times, November 30, 2021