Tiffany sues Costco over sales of engagement rings
(REUTERS) - Tiffany & Co on Thursday sued Costco Wholesale Corp to stop the largest United States (US) 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 US$2 million (S$2.5 million) per infringement.
Tiffany said it believes hundreds, if not thousands, of Costco members bought engagement rings that they believed were authentic Tiffany products but in fact were not.
Luxury retailers often sue to stop sales of alleged imitation products that they believe cut into their own revenue streams and customer goodwill.