Costco Must Pay Tiffany & Co. $19.4 Million in Jewelry Trademark Case

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Tiffany & Co. just scored a major payday.

On Monday a federal judge ruled that jewelry giant may recover $19.4 million in damages from Costco Wholesale Corp after the warehouse club store sold diamond engagement rings labeled "Tiffany" that were not pieces by Tiffany & Co.

Costco intends to appeal and called the decision "a product of multiple errors," according to Business of Fashion.

The outlet also reports that U.S. District Judge Laura Taylor Swain permanently banned Costco from selling any "Tiffany" products that Tiffany & Co. did not make unless they use modifiers to make it clear that it isn't a Tiffany & Co. product.

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In her opinion, Swain wrote that Costco's management “displayed at best a cavalier attitude toward Costco’s use of the Tiffany name in conjunction with ring sales and marketing."

RELATED: Gucci Just Filed a Lawsuit Against Forever 21 Alleging Design Knock Offs

Costco only made about $3.7 million from selling the "Tiffany" rings, according to the Washington Post, but the final $19.4 million verdict reflects three times Tiffany & Co's lost profit plus punitive damages and interest.

This decision comes just a week after Gucci filed a lawsuit against Forever 21 for producing items that resembled trademarked designs.

SHOW TRANSCRIPT

[MUSIC] Hey guys it's Kahlana. So it's New York Fashion Week and I'm talking about some of the trends that I'm loving for Fall. One of my absolute favorite trends this season is gold jewelery. Now the reason why I love this trend is because I live in gold jewelery, it's part of my signature look. So my current obsession are these bracelets from the Tiffany T collection. So I'm wearing the square bracelet in gold and silver, and the wire bracelet in gold with diamonds. Now what I love most about these pieces is that they're so modern. They're clean, they're graphic, they work for a downtown girl like me, and they work for the uptown girl. Now my formula to layering is to always have a chunky piece. Like the square bracelet or a delicate piece like the wire bracelet, and the combination together is perfect. I'm obsessed. [MUSIC]
 
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