Costco owes Tiffany $19.4M after selling 'Tiffany' rings
Customers shop at Costco on March 12, 2013 in Los Angeles, California. Costco Wholesale Corp.'s profit beat expectations with a net income for the second quarter that climbed to almost 40 percent. (Photo by Kevork Djansezian/Getty Images)
A federal judge on Monday said Tiffany & Co may recover at least $19.4 million in damages from Costco Wholesale Corp 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.