NEW YORK—Tiffany & Co has settled its greater than eight-year-old lawsuit accusing Costco Wholesale Corp of trademark infringement and counterfeiting for promoting generic diamond engagement rings bearing the “Tiffany” title.
Monday’s settlement got here after the federal appeals court docket Manhattan in August threw out a $21 million judgment that Tiffany, acquired in January by French luxurious items firm LVMH SE, received in 2017 following a jury trial.
A trial choose had discovered Costco answerable for promoting the disputed rings, regardless of its declare that “Tiffany” had grow to be a generic time period and described the rings’ pronged setting. That left jurors to resolve solely how a lot Tiffany ought to get better.
However the appeals court docket stated Costco acted in good religion, and that Costco prospects had been sensible sufficient to comprehend Tiffany didn’t make or endorse the warehouse chain’s “Tiffany” rings.
An estimated 3,349 prospects purchased Tiffany-set rings at Costco in the course of the interval lined by the lawsuit, court docket papers confirmed.
David Bernstein, a lawyer for Costco, stated in an electronic mail that the businesses “amicably resolved their dispute.” Tiffany issued an analogous assertion. Settlement phrases weren’t disclosed.
Tiffany had sued Costco on Valentine’s Day in 2013, to guard the now 184-year-old firm’s model and cachet.
It ended the case after changing its regulation agency this month. The dismissal filed with the federal court docket in Manhattan is with prejudice, which means Tiffany can’t convey the lawsuit once more.
By Jonathan Stempel