A federal judge on Monday said Tiffany & Co (TIF) may recover at least $19.4 million in damages from Costco Wholesale Corp (COST) over the warehouse club chain’s illegal sale of counterfeit diamond engagement rings bearing the “Tiffany” name.
U.S. District Judge Laura Taylor Swain said Tiffany deserves $11.1 million, plus interest, representing triple the lost profit from Costco’s trademark infringement, plus the $8.25 million in punitive damages awarded by a jury last October.
The Manhattan judge also permanently barred Costco from selling anything that Tiffany did not make as “Tiffany” products, unless it uses modifiers suggesting that the products have, for example, a Tiffany “setting,” “set” or “style.”
Costco said it intends to appeal, calling the decision “a product of multiple errors” by Swain.
“This was not a case about counterfeiting in the common understanding of that word — Costcowas not selling imitation Tiffany & Co rings,” Costco said.
Tiffany had sued Costco on Valentine’s Day in 2013.