8-Year Old Lawsuit Over Costco’s Fake Tiffany Ring, Settled
Tiffany & Co. has settled a more than eight-year-old lawsuit alleging Costco Wholesale of trademark infringement and counterfeiting in connection with the sale of generic diamond engagement rings using the “Tiffany” brand.
Tiffany and Company v. Costco Wholesale Corporation
Tiffany’s settlement, verified by a Costco lawyer, comes after a federal appeals court in Manhattan puts down a $21 million judgment Tiffany won during a jury trial in 2017. Tiffany is now owned by LVMH SE, a French luxury goods company.
Costco was found liable for selling the contested jewels, notwithstanding the retailer’s contention that “Tiffany” had become a generic name for the rings’ pronged setting. Thus, jurors were left to decide just how much Tiffany should be compensated.
However, the appeals court determined that Costco acted in good faith. Its consumers were intelligent enough to recognize that Tiffany did not manufacture or approve the warehouse chain’s “Tiffany” rings.
According to court documents, an estimated 3,349 people purchased Tiffany-set rings at Costco during the time period covered by the case.
Costco’s lawyer, David Bernstein, stated in an email that the businesses calmly resolved their dispute.
The settlement’s terms were not disclosed. Tiffany and its attorneys did not immediately reply to demands for comment.
Tiffany sued Costco on Valentine’s Day 2013 to preserve the brand and cachet of the now-184-year-old corporation.
It resolved the matter this month after switching law firms. Tiffany cannot bring the claim again, as the dismissal filed in federal court in Manhattan is with prejudice.
On the Other Hand
Tiffany & Company is currently facing a class action lawsuit brought by a visually impaired client alleging that the luxury jewelry retailer does not provide gift cards with Braille writing, therefore violating the Americans with Disabilities Act.
Costco is also facing a class action lawsuit alleging that its COBRA insurance notification contains “inaccurate and misleading threats” that scare employees away from obtaining the continuous coverage they are entitled to.
Editor’s Note on Tiffany Ring Settlement With Costco:
This article is written to inform you of the settlement of Tiffany with Costco over an eight-year lawsuit.
Case Name & No.: Tiffany and Company v. Costco Wholesale Corporation, Case No. 1:2013cv01041
Jurisdiction: US District Court – Southern District of New York
Products/Services: Counterfeit rings
Allegations: Costco allegedly marketed generic diamond engagement rings using the “Tiffany” brand
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