A federal judge ruled that Costco owes jewelry company Tiffany & Co. $19.4 million after misleading customers with fake "Tiffany" rings.
A federal judge ruled that Costco owes the jewelry company Tiffany & Co. $19.4 million after the budget retailer sold counterfeit diamond engagement rings using the Tiffany name.
On Monday, a US district judge ruled that the $8.25 million in damages a jury ordered Costco to pay in October was an insufficient punishment. Judge Laura Taylor Swain said Tiffany deserved an additional $11.1 million plus interest from the retailer, bringing the total to $19.4 million.
Costco made an estimated $3.7 million in profit selling items marketed as Tiffany engagement rings. While Costco argued that a "Tiffany-set" ring was an understood industry term, Swain said that selling them was an infringement on the Tiffany trademark.
Costco was also banned from marketing or labeling rings or other items as "Tiffany" products unless it clarifies that "Tiffany" is a descriptive word — not the brand itself — with a modifier such as "set," "style," or "setting."
Costco said it planned to appeal the decision, saying it was the product of "multiple errors in pretrial, trial, and post-trial rulings."
"Tiffany & Co. did not claim in the lawsuit that it lost a single sale to Costco as a result of any sign," the company said in a statement. "From a purchaser list of approximately 2,500, Tiffany identified fewer than 10 who said that they had misunderstood Costco's signage. This was not a case about counterfeiting in the common understanding of that word — Costco was not selling imitation Tiffany & Co. rings."
Costco has sold the rings since before 2007. Tiffany filed the lawsuit against Costco on February 14, 2013.
A federal judge ruled that Costco owes jewelry company Tiffany & Co. $19.4 million after misleading customers with fake "Tiffany" rings. Read Full Story
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