Costco should pay $5.5 million for selling fake Tiffany rings: U.S. jury
- Wall St. set to open lower, weighed down by GE
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Microsoft (MSFT) Tops Q1 EPS by 8c
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
Shopping carts are seen at a Costco Wholesale store in Glenview, Illinois, U.S. May 24, 2016. REUTERS/Jim Young
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
By Andrew Chung
NEW YORK (Reuters) - Costco Wholesale Corp should hand over $5.5 million to compensate Tiffany & Co for selling counterfeit Tiffany diamond engagement rings, a federal jury said on Thursday.
Tiffany is also entitled to punitive damages, the jury in Manhattan said. Lawyers for both sides were presenting evidence on Friday to help determine the amount of punitive damages.
The trial, which began on Sept. 20, was aimed at determining the amount in total damages that Costco is liable for, after U.S. District Judge Laura Taylor Swain ruled last year that Costco had willfully infringed Tiffany's trademark by selling rings bearing the luxury retailer's name.
Tiffany spokesman Nathan Strauss declined to comment on Friday. In a statement on its website, Costco said it would not comment because jury deliberations were continuing.
The $5.5 million represents the amount of profit Costco made from the sale of the rings that would fairly compensate Tiffany, said the jury, which was made up of five men and two women.
The amount far exceeds the $781,000 that Costco had argued at the start of the trial was the maximum it owed. Costco said about 2,500 rings it sold were found by the court to have infringed Tiffany's trademark.
Costco had also argued that Tiffany's trademarks were invalid because they sought ti prevent others from using the word "Tiffany" as a generic description of a type of ring setting.
But Swain rejected that argument and said Costco confused consumers by using the word Tiffany in display case signs.
She said Costco's jewelry buyers had asked vendors to copy Tiffany designs, and that evidence showed Costco employees were aware of customer confusion but did nothing to remedy it.
The case is Tiffany & Company and Tiffany (NJ) LLC v. Costco Wholesale Corp, U.S. District Court, Southern District of New York, 13-1041.
(Reporting by Andrew Chung; Additional reporting by Nate Raymond; Editing by Alexia Garamfalvi and Bernadette Baum)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- British PM May says Brexit talks with EU will take time
- Greek debt relief no substitute for reforms, says ECB official
- Syrian army and Russian jets halt Aleppo bombardment for second day
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!