Nike Sues Lululemon Over At-Home Mirror Gym

Nike Inc. NKE has filed a lawsuit against Lululemon Athletica Inc. LULU, accusing the apparel company of patent infringement over its at-home Mirror fitness device and accompanying mobile apps.

What Happened: Nike said in its lawsuit that it owns a robust portfolio of patents directed to its digital sport innovations for use in or with fitness equipment and apps, citing the Nike+ iPod system, the Nike+ SportWatch, and the Nike+ Running App, among others.

The company accused Lululemon of infringing several of these patents by making and selling the Mirror Home Gym, a wall-mounted mirror device that allows customers to participate in live and on-demand fitness classes.

Nike noted that, prior to filing the lawsuit, it had notified Lululemon of its infringement, but those claims were rejected by the apparel maker.

Why It Matters: Lululemon acquired in-home fitness company Mirror in 2020, when the demand for at-home fitness products surged amid the COVID=19 pandemic.  

Lululemon is also involved in a legal tussle with Peloton Interactive Inc. PTON.

The company filed a patent infringement lawsuit against Peloton in November last year, just days after the fitness company filed a pre-emptive lawsuit against Lululemon, as per a report by Bloomberg.

Price Action: Nike’s shares closed 2.5% lower in Wednesday’s trading at $162.25, while Lululemon Athletica’s shares closed 4.8% lower at $362.48.

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