Monday, January 17, 2022

Nike sues Lululemon over Mirror Home Gym

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Nike sued Lululemon on Wednesday for infringing on a patent for the unauthorized production and sale of the Mirror Home Gym and related mobile apps.

In a lawsuit filed in the U.S. Manhattan District Court, Nike accused its minor rival of infringing six patents, including through technology that allows users to use a certain amount of power, compete with other users, and record their performance.

Nike, based in Beaverton, Oregon, is seeking three times the amount of compensation and various other safeguards for Lululemon’s intentional offense.

According to the Lululemon website, window gyms start at $ 1,195.

“The patents in question are not very broad and real. We believe in our position and look forward to defending it in court,” Lululemon said in a statement.

In a letter to Nike on December 10, 2021, Lululemon’s lawyer in Vancouver said the company, based in British Columbia, “respects intellectual property” even if it denies Nike’s claims.

In July 2020, Lululemon bought the Mirror, a home fitness company with an interactive training platform that includes live and on-demand workouts, for about $ 453 million.

Lululemon bought the Mirror fitness company in 2020 and denied the Nike allegations, saying “the patents under consideration are too broad.”

During the pandemic, sportswear manufacturers benefited as people were forced to work or spend more time at home, abandoning clothing for hats, leggings and other casual wear.

But Lululemon warned last month that the spread of the Omicron coronavirus variant could reduce clothing sales due to supply chain problems and a potential store closure.

A runner wearing Nike shoes stands in the starting blocks before the race
Nike claims that Lululemon has violated six patents, including through technology that allows users to expend a certain amount of power, compete with other users, and record their performance.

It also halved its fiscal year sales forecast for the Mirror, from $ 125 million to $ 130 million.

Shares of Lululemon fell 4.8% to $ 362.48, while Nike ended the day down 2.5% to $ 162.25.

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