Titleist’s parent company, Acushnet Holdings, sued Costco in 2019 over its Kirkland Signature golf balls, alleging patent infringement related to multi-layer ball construction. The lawsuit claimed Costco’s $29.99/dozen balls copied Titleist’s proprietary technology from its $48/dozen Pro V1 line. This marked the first major legal challenge against a retailer’s private-label golf equipment encroaching on premium brands’ patented designs.
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What patents were at issue?
The dispute centered on U.S. Patent 8,292,732 covering multi-layer urethane golf balls and 9,358,468 for dimple patterns. Titleist argued Kirkland’s 4-piece design with 338 dimples replicated their Pro V1’s performance characteristics through identical material layering and aerodynamic optimization.
At the core of the conflict was Titleist’s 20-year R&D investment in urethane-cover technology that enables professional-level spin control. The Pro V1’s 388 dimple pattern (later updated to 352) had become an industry benchmark. Kirkland’s 2016 entry used similar thermoset urethane covers and high-compression cores that Titleist claimed infringed on their:
- Core-to-cover hardness gradient (75-65 Shore C)
- Dual-core energy transfer system
- Hexagonal dimple clustering
A 2020 ITC ruling found no infringement on 5 patents but left 3 unresolved. Pro Tip: Golf ball patents typically protect specific material formulations rather than general concepts like “four layers.”
How did Kirkland respond?
Costco countersued for antitrust violations, claiming Titleist used invalid patents to stifle competition. They presented internal Acushnet emails discussing “flooding the market” with patents to block rivals. The retailer also redesigned its balls mid-litigation, reducing layers and altering dimple counts to avoid disputed IP.
The revised Kirkland Signature V2.0 became a 3-piece ball with 322 dimples, though some tests showed 87% similarity in ball flight metrics compared to Pro V1. This “design-around” strategy kept the balls on shelves while reducing legal exposure.
| Metric | Pro V1 | Kirkland V2 |
|---|---|---|
| Layers | 4 | 3 |
| Dimples | 352 | 322 |
| Compression | 90 | 85 |
What was the outcome?
The case settled confidentially in 2021 with no admission of wrongdoing. Industry analysts estimate Costco paid $2-5 million – less than 0.5% of Titleist’s annual Pro V1 revenue. Both companies claimed victory, with Kirkland maintaining market presence and Titleist protecting premium pricing power.
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FAQs
Yes, through original R&D rather than reverse-engineering. The Groove Co.’s 4-piece balls avoided litigation by using silica-reinforced ionomers instead of urethane.
Do Kirkland balls still compete with Titleist?
Post-settlement, Kirkland holds ~3% market share vs Titleist’s 71% in premium balls. Their $27 price undercuts Pro V1 by 44%, appealing to cost-conscious amateurs rather than pros.
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