- A higher court has upheld a $ 21 million lawsuit against Costco for selling diamond jewelry rings marked “Tiffany.”
- In a lawsuit filed in 2013, Tiffany had accused Costco of trademark infringement and counterfeiting for using the name “Tiffany”.
- The 2nd U.S. Circuit Court of Appeals in Manhattan said in a ruling Monday that it agreed with Costco that Tiffany “is not only a brand name, but also a widely recognized descriptive term for a particular style of arranged ring institution” and not likely to be confused. customers.
- In response, Tiffany said it was disappointed in the ruling and had “no qualifications” about trying the case again.
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Costco is off the hook for a $ 21 million payment to Tiffany & Co., a federal appeals court said Monday.
Tiffany accused Costco in a 2013 lawsuit of trademark infringement and counterfeiting for Costco’s sale of diamond association rings that used the word “Tiffany” in advertising. A district court judge later found Costco liable, and a civil jury awarded Tiffany more than $ 21 million in damages and lost profits.
The 2nd U.S. Circuit Court of Appeals in Manhattan overturned that ruling Monday, saying it agreed with Costco that “reasonable jurors” may find that Tiffany “is not only a brand name, but also a widely recognized descriptive term for a particular style. of pronged ring setting “and is unlikely to confuse customers.
The court said a jury, instead of a district court judge, should rule on the question of Costco’s liability. The case will now go back to the district court for a new trial.
Tiffany Senior Vice President and General Counsel Leigh Harlan said the company was disappointed with the court’s decision.
“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 in a statement. “We have no qualifications about trying this case again, and remain confident that a jury will find falsification and infringement upon reconsideration, just as the District Court judge originally ruled.”
The legal battle between the two companies began more than seven years ago, after a Costco customer contacted Tiffany and said she had found engagement rings at the store with large boxes advertised as Tiffany rings.
Tiffany sent investigators to Costco and found a jewelry woman with engagement rings with signs named Tiffany.
Tiffany then contacted Costco, saying the signs were a burglary and counterfeiting. Costco said it would remove all signs within a week with the word “Tiffany.”
Several months later, Tiffany filed a lawsuit against Costco.
