Costco must pay Tiffany another $8.2m in trademark case

A US jury has reportedly ruled that wholesaler Costco must pay luxury brand Tiffany $8.25 million in punitive damages for selling counterfeit diamond rings.

This is in addition to the $5.5 million in compensatory damages that a jury ruled Costco should pay for selling thousands of counterfeit diamond rings, as WIPR  reported on Monday, October 3.

The jury made that decision on September 29 at the US District Court for the Southern District of New York.

The trial began on September 20, a year after Judge Laura Swain granted Tiffany’s motion for summary judgment.

Costco was found liable for counterfeiting and trademark infringement.

The luxury brand sued Costco in February 2013 after it had received information that the wholesaler was selling a range of rings under the name Tiffany.

This latest ruling was reportedly decided by the jury yesterday, October 5, and Costco must now pay $13.75 million in total damages to Tiffany.

But, according to Fortune, Costco could still appeal against the awards and a judge could modify the decisions.

Tiffany was founded in 1837.

A spokesperson for Tiffany told WIPR: “The award validates the strength of the Tiffany trademark, the value of our brand, and most importantly, sends a clear and powerful message to Costco and others who infringe the Tiffany mark.

“Tiffany is much more than a name. It stands for responsible sourcing, exacting standards and exceptional craftsmanship. We felt a responsibility to protect the value of our customers’ purchases and to ensure that Costco‘s customers were not misled about their purchases. It is critically important that the Tiffany name not be used to sell any engagement ring that is not its own," they added.

A spokesperson for Costco said: "Proceedings are continuing. Because the jury’s verdicts will be subject to further consideration by the court, further comment is not appropriate at this time."