Lululemon Uses Patent Suits to Buoy Business
This year, Vancouver-based yogawear maker Lululemon has found itself in a highly competitive market. It also made 24/7 Wall Street’s list of Canadian companies expected to fold in 2015. The retailer has recently fought back by taking out patents on its clothing and suing competitors it says infringed on those patents.
The move is an unusual one, as the fashion industry has never really been known for patent lawsuits. And yet, an investigation by Buzzfeed has found that the company has taken out 31 patents on its products with the U.S. Patent and Trademark office. A search of the Canadian Patents Database shows that the company has also taken out two patents in Canada.
One of their Canadian patents is for a tank top with a built-in bra which Lululemon recently filed suit over. Lululemon insisted that Haneswear had copied its design and sent the company a letter giving the company 15 days to stop marketing and selling what they called a “copycat” product. The letter also urged the company to issue a joint statement with Lululemon advising customers to shop at Lululemon if they liked that particular product. If Haneswear failed to comply, Lululemon would apparently launch a lawsuit “possibly in two separate countries.”
Haneswear then countersued, declaring that Lululemon’s patents were vague. Buzzfeed reports that the two companies settled out of court, and no details of the settlement were made available to the public.
Mark Sunderland of Philadelphia University’s School of Design and Engineering told Buzzfeed that he believes the patent lawsuit craze began when Apple sued Samsung several years ago for design patent infringement involving their smartphones.
That particular high-profile lawsuit got many business leaders interested in the potential of design patents. Shortly thereafter, Lululemon sued Calvin Klein over the supposedly copied design of the yogawear maker’s “Astro” pants. The company filed a nine-page complaint stating that Calvin Klein was selling pants that "have infringed and are still infringing" on three of its patents. Much like the Haneswear lawsuit, the Calvin Klein suit was also settled out of court.
Lululemon has taken aggressive measures to patent its products, seemingly not to protect its designs but rather to recoup substantial losses as the retailer faces increasing competition from clothing companies entering the yogawear market. Since the company has yet to win a patent lawsuit, it is safe to say that design patent litigation is still in the experimental stage. However, it might be smart for fellow yogawear companies to patent their own products in order to keep scheming companies like Lululemon at bay.
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.