Membership warehouse giant Costco, has found itself in legal trouble after selling fake jewelry marked as authentic.
Tiffany & Co filed a trademark infringement suit against Costco over knock-off rings labeled as ‘Tiffany’. A federal judge has ordered Costco to pay out more than $19 Million for their long-running shady sales practice.
Costco has sold the jewelry marked ‘Tiffany’ for years without any modifiers to indicate the items were not from the world famous ‘Tiffany’ brand.
In total, Costco will pay out $11.1 million, plus interest to Tiffany & Co, representing a three times multiple of the profit made from the faux jewelry; this is in addition to the $8.25 Million already awarded by a jury last year.
The judge also banned Costco from selling anything that bears the name “Tiffany,” without clear modifiers such as “style”, “set” or “setting”.
Costco plains to appeal the ruling, claiming an unfair ruling due to “multiple errors in pretrial, trial, and post-trial rulings.” They also argued that the word “Tiffany” was an obvious generic reference to the ring’s setting, and not the brand itself.