Costco to pay heavy fine for selling ‘Tiffany’ engagement rings

(WSVN) — The Costco chain has been forced to pay a heavy fine for selling “Tiffany” engagement rings… that weren’t made by Tiffany.

A federal judge ruled Monday that Tiffany is entitled to a $19.3 million award, which includes triple the loss in profits Tiffany incurred from Costco’s actions, plus interest, and more than $8 million in punitive damages.

In a statement, Tiffany said the decision “sends a clear and powerful message to Costco and others who infringe the Tiffany mark.”

Costco had argued it was using “Tiffany” as a generic term to describe a ring’s setting. It argued that the items were not stamped or marked with the Tiffany name and were not sold in Tiffany’s distinct blue boxes or bags.

Costco also said it plans to appeal the ruling.

Copyright 2018 Sunbeam Television Corp. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.