The trend: Brands are ramping up legal action over perceived infringements of their intellectual property.

In recent months, several companies have filed suit against competitors.

• Lululemon sued Costco for allegedly selling knockoff versions of the athleisure brand’s signature leggings and other apparel.
• Mondelez is suing Aldi over private-label packaging that “blatantly copies” that of Chips Ahoy, Oreo, and other iconic brands.
• Columbia Sportswear sued Columbia University over alleged trademark infringement and breach of contract.
• Kizik Shoes sued Skechers for allegedly copying its hands-free slip-on shoe designs.
• Pop Mart is suing several 7-Eleven store operators for purportedly selling counterfeit versions of its blockbuster Labubu toy.

Why it matters: The difficult consumer environment, coupled with the normalization of dupe culture, is forcing companies to take stronger action to protect their brand equity and market share. It’s no accident that lululemon, Mondelez, and Columbia Sportswear operate in highly competitive sectors that are especially vulnerable to uncertainty.

• Lululemon and Columbia Sportswear flagged soft US demand in recent quarterly earnings, which along with tariff pressures will weigh on their performance.
• Mondelez is highly vulnerable to trade-down behaviors, as more consumers see private labels like the ones sold by Aldi as satisfactory substitutes for more expensive name brands.
• Pop Mart’s explosive growth has come on the back of the Labubu—making it imperative to defend its intellectual property.

Our take: With brand loyalty ebbing as price concerns take priority, more companies are leaning on the law to keep rivals from undercutting their business.

But there are limits: Ecommerce marketplaces like Amazon, Walmart, Temu, and Shein are crammed to the gills with dupes that are incredibly difficult to crack down on.

While companies should protect their IP wherever possible, they also need to make clear to shoppers why their products are better than knockoff versions—and why they’re worth full price.

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