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