Costco should pay $five.5 million for selling faux Tiffany jewelry

new york Costco Wholesale Corp ought to hand over $five.five million to compensate Tiffany & Co for selling counterfeit Tiffany diamond engagement earrings, a federal jury said on Thursday.

Tiffany is also entitled to punitive damages, the jury in big apple stated. attorneys for both sides were presenting proof on Friday to help decide the amount of punitive damages.

The trial, which began on Sept. 20, became geared toward figuring out the amount in total damages that Costco is answerable for, after U.S. District choose Laura Taylor Swain ruled final 12 months that Costco had willfully infringed Tiffany's trademark through selling jewelry bearing the posh retailer's call.

Tiffany spokesman Nathan Strauss declined to touch upon Friday. In a assertion on its website, Costco said it would not remark because jury deliberations have been continuing.

The $five.5 million represents the quantity of earnings Costco made from the sale of the earrings that might fairly compensate Tiffany, said the jury, which was made of five men and two ladies.

the amount a long way exceeds the $781,000 that Costco had argued on the start of the trial changed into the maximum it owed. Costco said about 2,500 rings it sold have been found by means of the courtroom to have infringed Tiffany's trademark.

Costco had additionally argued that Tiffany's logos have been invalid because they sought ti prevent others from the use of the phrase "Tiffany" as a widespread description of a kind of ring putting.

but Swain rejected that argument and said Costco harassed customers by using using the word Tiffany in show case signs.

She said Costco's rings buyers had asked companies to duplicate Tiffany designs, and that evidence confirmed Costco personnel were privy to client confusion however did nothing to treatment it.