Article
Costco loses court round in Tiffany ring legal battle
Wholesale retailer under scrutiny for Tiffany ring allegations and Tiffany gets green light from judge to pursue damages.
September 14, 2015
Likely one of the worst things that can happen to a newly engaged woman is the revelation that her shiny new ring isn’t quite the ring she’s led to believe. Buying a ring one believes to boast a "Tiffany" setting and finding out it isn’t doesn’t make for a good customer experience to say the least.
But that’s exactly the scenario thousands of brides who received rings in 2013 may face given allegations that wholesaler Costco allegedly misled ring buyers in describing engagement rings as Tiffany rings two years ago, according to a New York Post report.
Supposedly Costco, which is the biggest warehouse chain in the U.S., marketed some engagement rings as “Tiffany,” and not only may have infringed on the Tiffany trademark but led some consumers to believe the jewelry was Tiffany-value. Tiffany filed a suit in 2013 citing trademark infringement.
The issue is currently in a Manhattan federal court and Costco, which claimed it did not act in bad faith with the ring description, had its request to reject the legal allegations rejected by Judge Laura Taylor Swain late last week.
The judge has ruled that pretrial evidence establishes Costco had infringed on the trademarks and confused consumers with display signs stating the rings’ settings were "Tiffany." Tiffany, the plaintiff, can now bring the matter to a jury to seek damages, which can include Costco’s ring sales profit and punitive damages.
Tiffany’s lawyer Leigh Harlan stated in a media release that the court ruling "further validates the strength and value of the Tiffany mark and reinforces our continuing efforts to protect the brand."
The next court date is Oct. 30.
