On Monday, U.S. District Judge Laura Taylor Swain ruled that wholesale giant Costco (COST - Free Report) owes luxury jewelry company Tiffany & Co. over $19 million in a case over trademark infringement.
Judge Swain ruled that Tiffany is entitled to $11.1 million in trebled profits, which is three times the loss it incurred from Costco’s actions, plus interest and $8.25 million in punitive damages. Costco had been selling products, like diamond rings and other jewelry, falsely identified and marked with the “Tiffany” brand, and the company’s management "displayed at best a cavalier attitude toward Costco's use of the Tiffany name in conjunction with ring sales and marketing,” said Judge Swain in her opinion.
“Costco's salespeople described such rings as ‘Tiffany’ rings in response to customer inquiries, and were not perturbed when customers who then realized that the rings were not actually manufactured by Tiffany expressed anger or upset,” Swain continued.
Tiffany declared the judge’s decision a victory, with its lead counsel Jeffrey Mitchell saying that “this has been a long, hard fought battle to vindicate Tiffany’s rights.”
The iconic jewelry maker first filed a complaint against Costco back in 2013, saying that it had actually learned from a customer that the wholesaler was selling fake Tiffany rings. "There are now hundreds if not thousands of people who mistakenly believe they purchased and own a Tiffany engagement ring from Costco," the complaint said at the time. The 2013 complaint also said that Costco was not using the Tiffany trademark on its website, which made it difficult for the jeweler to track it down.
Costco said it intends to appeal Judge Swain’s ruling; the company argued that it was using “Tiffany” as a generic word to describe a particular kind of ring setting, and that the rings were not marked with the Tiffany brand. "This was not a case about counterfeiting in the common understanding of that word -- Costco was not selling imitation Tiffany & Co. rings," the company said in a statement.
Additionally, Costco can no longer use the word “Tiffany” to sell products, said Swain.
At market close, shares of COST were down a slight 0.65%, while TIF stock was down 2.89%.
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On Monday, U.S. District Judge Laura Taylor Swain ruled that wholesale giant Costco (COST - Free Report) owes luxury jewelry company Tiffany & Co. over $19 million in a case over trademark infringement.
Judge Swain ruled that Tiffany is entitled to $11.1 million in trebled profits, which is three times the loss it incurred from Costco’s actions, plus interest and $8.25 million in punitive damages. Costco had been selling products, like diamond rings and other jewelry, falsely identified and marked with the “Tiffany” brand, and the company’s management "displayed at best a cavalier attitude toward Costco's use of the Tiffany name in conjunction with ring sales and marketing,” said Judge Swain in her opinion.
“Costco's salespeople described such rings as ‘Tiffany’ rings in response to customer inquiries, and were not perturbed when customers who then realized that the rings were not actually manufactured by Tiffany expressed anger or upset,” Swain continued.
Tiffany declared the judge’s decision a victory, with its lead counsel Jeffrey Mitchell saying that “this has been a long, hard fought battle to vindicate Tiffany’s rights.”
The iconic jewelry maker first filed a complaint against Costco back in 2013, saying that it had actually learned from a customer that the wholesaler was selling fake Tiffany rings. "There are now hundreds if not thousands of people who mistakenly believe they purchased and own a Tiffany engagement ring from Costco," the complaint said at the time. The 2013 complaint also said that Costco was not using the Tiffany trademark on its website, which made it difficult for the jeweler to track it down.
Costco said it intends to appeal Judge Swain’s ruling; the company argued that it was using “Tiffany” as a generic word to describe a particular kind of ring setting, and that the rings were not marked with the Tiffany brand. "This was not a case about counterfeiting in the common understanding of that word -- Costco was not selling imitation Tiffany & Co. rings," the company said in a statement.
Additionally, Costco can no longer use the word “Tiffany” to sell products, said Swain.
At market close, shares of COST were down a slight 0.65%, while TIF stock was down 2.89%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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