Costco Must Pay Over $19 Million for Selling Knock-Off Tiffany Rings

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Costco Wholesale Corporation (NASDAQ:COST) will have to pay more than $19 million to Tiffany & Co. (NYSE:TIF) for selling knock-off versions of its rings.

CostcoThe jeweler brought a lawsuit to the retailer after Costco reportedly sold rings with the Tiffany brand name that were not manufactured, produced or distributed by the company.

U.S. District Judge Laura Taylor Swain made a ruling on Monday that Tiffany is entitled to $11.1 million in trebled profits, amounting to triple the loss the company faced due to Costco’s retail practices.

Additionally, Costco will have to pay interest and $8.25 million in punitive damages, amounting to more than $19.3 million. Tiffany said that the move helps to protect the legitimacy and value of its brand, plus it sends a message to Costco and other companies that infringe on its name.

“We brought this case because we felt a responsibility to protect the value of our customers’ purchases,” the company added. “It is critically important that the Tiffany name not be used to sell any engagement ring that is not our own.”

“This was not a case about counterfeiting in the common understanding of that word — Costco was not selling imitation Tiffany & Co. rings,” Costco said. The company said that “Tiffany” is a generic term for the type of rings the company was selling, rather than the brand.

COST stock is down 0.5% Tuesday, while TIF shares fell 1.9%.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/costco-tiffany-cost-tif-2/.

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