The terms of the settlement have not been disclosed, however Reuters quotes David Bernstein, a legal representative for Costco, as saying the two companies “amicably resolved their dispute”.
Notably, Reuters also states that Tiffany & Co. – which was acquired by French luxury conglomerate Moët Hennessy Louis Vuitton (LVMH) in January – recently attained new legal representation.
Media reports of a potential out-of-court settlement had been circulating since March, when Tiffany & Co. last filed a joint-status report in which it requested a jury trial.
The international jewellery company first filed suit in early 2013 over a collection of six-prong diamond engagement rings sold by Costco with the descriptor “Tiffany” on the tags and in-store signage.
An estimated 3,349 customers purchased the Costco rings, netting Costco $US3.7 million in profits. A 1-carat platinum solitaire ring with VS clarity was listed at $US6,399.99 – a similar ring on the Tiffany & Co. website retails for $US14,000.
Tiffany & Co. argued that the rings constituted trademark infringement and counterfeiting, as it was possible customers were misled to believe that the rings were manufactured by Tiffany & Co.
It also contended that Costco had instructed its jewellery suppliers to copy Tiffany & Co. engagement ring designs.
Meanwhile, Costco claimed that the descriptor “Tiffany” referred to the six-prong setting of the rings and that “Tiffany setting” could be considered a generic term in the jewellery industry – a claim that was upheld by the US Court of Appeals for the Second Circuit, which overturned a lower court’s judgment in Tiffany’s favour in August 2020.
Following the settlement, Tiffany filed for a dismissal with prejudice, meaning it cannot bring the lawsuit again.
More reading:
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