Costco sold counterfeit Tiffany engagement rings: U.S. judge





Nate Raymond, Reuters

Wednesday, September 9, 2015 12:01:52 EDT PM


NEW YORK - Costco Wholesale Corp willfully infringed Tiffany & Co's trademarks by selling counterfeit diamond engagement rings bearing the luxury retailer's name and must face a jury trial to assess damages, a U.S. judge ruled on Tuesday.

U.S. District Judge Laura Taylor Swain in Manhattan rejected claims by Costco that Tiffany's trademarks were invalid because they sought to prevent others from using the word "Tiffany" as a generic description of a type of ring setting.

Instead, Swain said evidence established that Costco, the largest U.S. warehouse club chain, had infringed Tiffany's trademarks by selling engagement rings and confused consumers by using the word Tiffany in display case signs.

"Despite Costco's arguments to the contrary, the court finds that, based on the record evidence, no rational finder of fact could conclude that Costco acted in good faith in adopting the Tiffany mark," Swain wrote.

Under the ruling, Tiffany may now take Costco before a jury to seek damages, including a recovery of Costco's profits from the sale of the diamond rings and punitive damages.

Swain set a hearing for Oct. 30 and directed Tiffany and Costco to "make good faith efforts to settle the outstanding issues."

In a statement, Tiffany General Counsel Leigh Harlan welcomed the ruling, saying it "further validates the strength and value of the Tiffany mark and reinforces our continuing efforts to protect the brand."

Representatives for Costco did not respond to requests for comment.

Tiffany filed the lawsuit on Valentine's Day in February 2013, saying it believed hundreds, if not thousands, of Costco members bought engagement rings they wrongly believed were authentic Tiffany products.

Tiffany said that in 2012, a person shopping at a Costco in Huntington Beach, Calif., complained to Tiffany that she was disappointed to see Costco offering for sale what were promoted on in-store signs as Tiffany diamond engagement rings.

Tiffany said a subsequent investigation revealed rings in a display case at the Huntington Beach Costco labeled with the word "Tiffany" and that a salesperson there referred to them as such.

Prior to the lawsuit, Tiffany contacted Costco and secured a commitment that it would remove references to Tiffany from its display case signs, according to Tuesday's ruling.

Costco also previously sent a letter to customers who bought the rings offering a full refund if they were unsatisfied, the ruling said.

The case is Tiffany & Company and Tiffany (NJ) LLC v. Costco Wholesale Corp, U.S. District Court, Southern District of New York, 13-1041.

Ok, I understand the desire some men have to save money on everything. I have to ask the women out there though, would you marry a guy who got your ring in the same place he buys his tires, Doritos, and squeeze bottle salsa?

Regarding the legal case, I guess if Tiffany sent a cease and desist letter at some point, and Costco keeps using the name, then we have a case to go to trial with. If however Costco had done this for years without a peep, then I think Tiffany has little to say in the matter of recovering damages. The court simply orders Costco to stop, and everyone moves on.

No I defiantly would not like a ring to be purchased at a Costco or Walmart and so on.


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Under the ruling, Tiffany may now take Costco before a jury to seek damages, including a recovery of Costco's profits from the sale of the diamond rings and punitive damages.

It would be interesting if Tiffany follows through with that option.

"here honey I got you a ring from Costco's..uh I mean Tiffany's..ya Tiffanys"

why didn't they use SPIFFANY instead?

"Here honey, I was down at the Costco and picked you up an engagement ring and a 24 pk of Charmin..."

Sounds like another classic example of corporate mismanagement due to doing everything on the cheap.

Probably started with thinking that putting up signs saying it's LIKE Tiffany's stuff but cheaper, then sloppiness led to just saying Tiffany directly. When they were ordered to change the signs, the cheap management failed to take proper action, as in sending paid people to directly make sure things were fixed.

Anyone foolish enough to believe that $6.00, will buy them a true and genuine Tiffany ring at Costco, of all places, kinda deserve what they got.

"Oh honey! I just bought a Rolex, for three dollars. It was on sale... at Target."

I wouldn't expect anything from Tiffanys to be sold at Costco but Costco does have some nice jewelry. I really don't care how big a diamond is (or even if there is a diamond). A simple wedding band was good for me when I was married.

I like the jewelry at Peoples then at least it last longer. I am glad that the customers who thought they were buying Tiffany's are getting a refund according to the article sales people were also saying that the rings were Tiffany.


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Tiffany said a subsequent investigation revealed rings in a display case at the Huntington Beach Costco labeled with the word "Tiffany" and that a salesperson there referred to them as such.

Umm, I got my ex wife's engagement right at Wal-Mart lol.

Well... enough said then :)

tiffanys,, from costco,,?


Lucy, you got some splaining to do!

I am not sure if I would ever shop at Costco .

not for that type of item I wouldnt

I shop there for food items or electronics, household appliances,, ,,they have good deals