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Nike Sues Lululemon Over Mirror Home Gym

Nike says Lululemon 'summarily' rejected its demand that it stop infringing six patents.

Nike  (NKE) - Get NIKE, Inc. Class B Report has filed a lawsuit charging Lululemon Athletica  (LULU) - Get Lululemon Athletica Inc Report with patent infringement for making and selling the Mirror Home Gym and related mobile apps without authorization

Nike accused Lululemon of having "summarily" rejected its demand that it stop infringing six patents, Reuters reported, citing a complaint filed in U.S. District Court in Manhattan.

The lawsuit seeks triple damages for Lululemon's alleged willful infringement and a variety of other remedies.

The complaint also names Curiouser Products, which operates as Mirror, as a defendant.

Lululemon Fires Back

A spokesperson for Lululemon said in an emailed statement to CNBC that “the patents in question are overly broad and invalid. We are confident in our position and look forward to defending it in court.”

Lululemon bought Mirror, an at-home fitness company with an interactive workout platform featuring live and on-demand classes, for about $453 million in July 2020, according to a regulatory filing.

Mirror Takes a Step Back

Mirror, a wall-mounted device that guides users through a variety of cardio classes and other exercises, represents about 3% of the company's total sales.

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In December, Lululemon CEO Calvin McDonald said during the company's third-quarter earnings call that he planned to step back marketing for Mirror in the short term.

"As you know, 2021 has been a challenging year for digital fitness. And as I mentioned on our last earnings call, we have seen increasing pressures on CAC [customer acquisition cost] that are impacting the entire industry," he said during the company's third quarter earnings call.

He remains committed to the device but plans to leverage other methods of growing the brand.

"We will invest to define our unique proposition and to bring Mirror to market through our owned marketing channels," he said,

McDonald pointed out that Mirror recently launched in Canada and that the company had expanded the product offering with "the introduction of our innovative connected weights."

Lululemon Has Sued Peloton

In November, Lululemon filed a patent lawsuit against Peloton Interactive  (PTON) - Get Peloton Interactive, Inc. Class A Report, seeking an injunction against Peloton’s infringement of the company’s intellectual property rights.

The apparel maker also wants damages and other monetary relief and alleges that Peloton’s design of leggings and sports bras infringed on its patent designs.

Peloton filed its own lawsuit on Nov. 24 in Manhattan’s federal court on Wednesday, seeking a court declaration that the company has not infringed on any patents.