The Vancouver-based yoga gear maker filed suit against PVH Corp.'s Calvin Klein and G-III Apparel Group Ltd., a manufacturer and supplier for the brand, during the summer.
Terms of the settlement were not released, but Lululemon says it will abandon its legal proceedings as a result of the settlement.
Lululemon claims Calvin Klein's Performance pants use the same waistband design elements and overall style of its Astro line of pants, which it filed a patent on in September 2011.
The waistband in question, featured on Lululemon's Astro line of pants, consists of a series of angular pieces of fabric that form a v-shaped waistline that can be rolled down to sit lower on the waist. They're made of the company's trademarked Luon fabric.
Calvin Klein's pants also have a V-shaped waistline, but retail at a lower price.
Lululemon's Astro crop pants are $78 on its website, while the Calvin Klein knee-length running tights are $39 on Amazon.com. The longer version of the Astro and Performance tights retail for $98 and $60 respectively.
Already a household name in Canada and the U.S., Lululemon is currently expanding aggressively overseas.
Lululemon opened its first store in Vancouver in 1998 and now has 47 stores in Canada, 108 in the United States, 18 in Australia and one in New Zealand.