News has just come out that Costco has been found guilty by a U.S. federal judge surrounding the accusations that Costco willingly sold counterfeit Tiffany & Co. engagement rings.

According to Fortune magazine online, Costco used the term “Tiffany” on signs in store to describe certain engagement rings not made by Tiffany. In their defence, Costco argued that the term “Tiffany” is a generic term for a kind of ring setting.

According to Fortune, U.S. District Judge Laura Taylor Swain stated that the manner in which Costco did their marketing of the rings did not let anyone “conclude that Costco acted in good faith in adopting the Tiffany mark,” which she said confused consumers.

Costco has been ordered to pay damages and that in fact Costco was selling counterfeit rings, making this a major victory for luxury retailer Tiffany’s as brand recognition and hich prices are critical to the overall maintenance of the Tiffany’s brand.


Source: Fortune