Tiffany sues Costco: A ring by any other name?
Tiffany sues Costco over sales of engagement rings, claiming Costco falsely labeled its diamond rings as Tiffany rings, deceiving customers and damaging the Tiffany brand.
Carats on carrots: Nicole Hypolite holds the 2.5-carat marquise engagement ring given by her fiance, Luis Barbosa.
Melanie Stetson Freeman / The Christian Science Monitor / File
Tiffany & Co sued Costco Wholesale Corp on Thursday to stop the largest U.S. warehouse club chain from selling what it called counterfeit diamond engagement rings bearing the luxury retailer's name.
The trademark lawsuit filed in Manhattan federal court also calls on Costco to forfeit profits from the ring sales, plus damages of $2 million per infringement.
Tiffany said it believes hundreds, if not thousands, of Costco members bought engagement rings they believed were authentic Tiffany products but in fact were not.
Luxury retailers often sue to stop sales of alleged imitation products they believe cut into their own revenue streams and customer goodwill.
"This is not the kind of behavior people expect from a company like Costco, and this case will shed a much needed light on this outrageous behavior," said Jeffrey Mitchell, a lawyer for Tiffany.
