Tiffany Wins Lawsuit Against Costco

A federal judge ruled that Costco (Issaquah, Wash.) must pay Tiffany & Co. (New York) more than $19 million for some diamond rings that were sold in its stores with the signage “Tiffany” rings. The rings were not in fact from Tiffany & Co., but instead were signed as such due to their Tiffany cut.

Some 2500 of the rings were sold, and the retailer made about $3.7 million profit from those rings. However, the judge ruled that the “cavalier” way in which Costco took advantage of the Tiffany name merited the higher payment, which included $8.25 million in punitive damages.

The judge also barred Costco from using the stand-alone word “Tiffany” to describe any products unless they are connected with Tiffany & Co.

Costco plans to appeal the ruling, reports Tampa Bay Times.