Why Tiffany & Co.’s $19.4M Court Win Against Costco Is Correct – And Important
In a legal battle that’s been underway since 2013, a federal judge ruled this week that Costco owes Tiffany & Co. a settlement of $19.4 million for selling diamond rings confusingly labeled as “Tiffany” in its stores, Forbes reports.
Forbes contributor Rachelle Bergstein explains that, while a jury found in Tiffany & Co’s favor in September of 2015, Costco continued to argue that its use of the name “Tiffany” referred to a generic style of ring, and not to the storied luxury house itself.
She writes that, while the suit sounds like a case of an elite, heritage brand pummeling a mass-market retailer for using its name to sell merchandise, it’s also a noteworthy example of how selling specialized products without a deep understanding of them can be disastrous (and potentially quite expensive) for the retailer.