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v. Costco Wholesale Corporation (October 2016)—Punitive Damages This was a trademark infringement case between Tiffany & Co. and Costco Wholesale Corp. The federal court in the Southern District of New York considered whether Costco’s use of the phrase “Tiffany setting” in connection with the sale of engagement rings was considered trademark infringement. The Court held for Tiffany & Co. and a jury granted an award of $13.75 million dollars ($5.5 million dollars in profits and $8.25 million dollars in punitive damages to Tiffany & Co.). This case has two main takeaways. The first is that punitive damages are not recoverable under the Lanham Act and are only recoverable under state unfair competition laws. The second is that Costco’s arguments, กระเป๋า CHARLES & KEITH พร้อมส่ง although unsuccessful, attempted to attack Tiffany’s incontestable registration. Costco argued that it was using “Tiffany setting” not as a source identifier but generically to describe a type of setting that had been created by Tiffany & Co. Had they been successful, Costco’s assertions would have resulted in Tiffany’s brand name being held generic for a particular style of jewelry setting.
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