Lululemon Athletica Canada Inc. has reached a settlement with Peloton Interactive Inc. over allegations the exercise equipment maker copied several of the apparel company's designs.
A notice of voluntary dismissal filed in a California court on Friday said the companies negotiated a "mutually agreeable settlement" of the trademark dispute.
In a joint statement, Lululemon and Peloton said they are "pleased the matters could be resolved amicably, resulting in dismissal of the pending litigation" between them.
"Without admissions of any kind, in an effort to resolve the dispute, Peloton has agreed to phase out certain designs identified in the complaint by lululemon," the statement said.
The settlement came a day after a New York court dismissed a lawsuit by Peloton filed in anticipation of a trademark complaint by Lululemon.
The Vancouver-based company had sent Peloton a cease-and-desist letter last November alleging the exercise equipment maker had copied several of its product designs.
In response, Peloton launched its own lawsuit against Lululemon asking the court to pre-emptively declare that it had not infringed on Lululemon patents.
A Federal Court in New York on Thursday tossed out Peloton's suit, calling it "an anticipatory action that warrants dismissal."
Former partners Lululemon and Peloton launched a co-branding relationship in 2016.
Lululemon provided the stationary bicycle and treadmill maker with apparel, and Peloton sold the merchandise with its own trademark alongside Lululemon's logo.
Peloton ended the relationship in 2021 and shortly after announced its own private label, Peloton Apparel, amid a pandemic-fuelled boom in athleisure.
Lululemon alleged Peloton began selling "copycat products" that closely resembled several of the retailer's best-selling styles.
"Peloton imitated several of Lululemon’s innovative designs and sold knock-offs of Lululemon’s products, claiming them as its own," the company alleged in court documents filed last November.
"These knock-offs include Peloton’s Strappy Bra, Cadent Laser Dot Legging, Cadent Laser Dot Bra, High Neck Bra, and Cadent Peak Bra, which collectively infringe six different lululemon patents."
In court documents, Peloton argued Lululemon’s allegations lacked merit.
"Even a quick comparison of the Lululemon patented designs with the allegedly infringing Peloton products reveals numerous clear and obvious differences that allow the products to be easily distinguished."