A federal court says Costco violated federal trademark laws when it sold engagement rings labeled "Tiffany" that were not those of Tiffany & Co.
High-end retailer Tiffany & Co. sued Costco in 2013 over the matter.
Costco claimed in a countersuit that "Tiffany" is a generic term for a pronged ring but the court rejected this argument on Tuesday. The court determined Tuesday Costco wilfully violated the laws and is liable for trademark infringement and trademark counterfeiting in its use of "Tiffany" on signs in the jewelry cases at its stores.
New York-based Tiffany & Co. is seeking punitive damages, which will be determined at a later date by a jury.
A representative for Costco Wholesale Corp., based in Issaquah, Washington, could not be reached for comment.
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