A federal appeals court dismissed Tiffany’s on Monday (TIF) – Get report $ 21 million judgment against Costco Wholesale (COST) – Get report on the sale of the company of the warehouse association of generic rings of diamond engagement with the name “Tiffany”
The Second U.S. Circuit Court of Appeals in Manhattan upheld a ruling by a lower court judge that found Costco liable for selling the rings.
Costco said the rings had an elongated setting known as a “Tiffany” and the company claimed that it used the word “Tiffany” as a description of a widely recognized solitary cut.
Circuit Judge Debra Ann Livingston said in the 3-0 decision that reasonable jurors could find that Costco’s use of “Tiffany” probably could not have confused customers or made them think that Tiffany had signed the rings.
Leigh Harlan, Tiffany’s senior vice president, secretary and attorney general, said in a statement that the company was “disappointed in the court’s ruling, which finds that a jury, instead of the judge, questioned the liability must have been decided in the first trial. “
“We continue to believe that the District Court was correct in its findings, and that the jury’s ruling on damages, which resulted in a $ 21 million award for Tiffany & Co., is a clear indicator of its strength. of the Tiffany brand, and of the jury’s disgrace over Costco’s actions, “Harlan said. revocation, just as the district court judge originally ruled. “
Costco, which did not immediately respond to a request for comment, said it removed “Tiffany” from store signs within a week after the jewelry company complained.
An estimated 3,349 customers purchased Tiffany set rings from Costco during the relevant period, according to court records.
Tiffany first filed a lawsuit against Costco in February 2013 for trademark infringement and counterfeiting to prevent Costco from describing the use of “Tiffany” on signs in jewelry cases at Costco to describe engagement rings not made by Tiffany.
In 2017, U.S. Judge Laura Taylor Swain banned Costco from selling anything marked as a “Tiffany” product without using an identifier such as “style,” “setting,” or “set.” Costco did not use those changing keywords in displays for the diamond rings.
Tiffany shares were slightly up to $ 125.18, while Costco shares were up 1.25% to $ 340.17.
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