Nike Sues Lululemon
Well, the year 2022 has only just begun, but there’s already a new legal battle between two fitness giants.
According to court documents, Nike Inc. is accusing Lululemon Athletica Inc. of patent infringement related to its in-home Mirror fitness device (and other apps). The complaint, filed in a U.S. District Court in Manhattan, alleges that Lululemon infringed on six of Nike’s patents. It also comes amid another inevitable boom for at-home fitness as Omicron cases rise rapidly.
At the center of Nike’s argument is the claim that it owns trademark rights to certain “digital sport technologies.” Nike says these trademark rights can be dated as far back as 1983, when the company filed a patent application on a device that measures the speed, distance, time and calories expended for a runner. Since then, Nike says the apps and technologies in its “digital ecosystem” are crucial to the company’s success and competitive position in the market. Nike argues that these digital elements, which include computerized activity, heart rate monitoring, wearable movement tracking devices, activity sensors, and the gamification of physical exertion, are being unfairly used by its Mirror device, an in-home fitness tool that Lululemon purchased for just under $500 million in 2020.
According to a Lululemon spokesperson, “The patents in question are overly broad and invalid.” Still, the lawsuit highlights an area of technology-related trademark law that could alter brand behavior moving forward. The broader implications are whether Nike’s patents are enforceable and would inhibit other in-home fitness companies’ ability to utilize the technologies at issue. If so, the impact on companies like Lululemon, Peloton, and Tonal could be major.
If Nike prevails in its case, Lululemon will face some major challenges for Mirror, which it only acquired two years ago. The interactive mirror workout platform, which features live and on-demand classes, was considered a strong purchase for Lululemon at the time, as more people were turning to in-home workouts at the start of the pandemic.
At the present moment, it is difficult to see how strong Nike’s legal argument actually is without fully understanding how the technology works. One thing is certain, it will take a significant amount of time and discovery for the the parties to work through the case and convince the court either way.
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