Majors

In Tiffany vs. Costco, the battle’s just begun

MajorsJan 29, 2014

In Tiffany vs. Costco, the battle’s just begun

The judge’s latest ruling in its battle with Costco likely left Tiffany feeling a little blue. But the legal battle between these two retail giants over the term “Tiffany” in relation to engagement ring settings is still in its early stages, and no one side has a clear advantage.

013014_Tiffany-attorneys-article.jpg
Emily Miao, left, is a partner while Nicole E. Grimm is an associate at the Chicago-based law firm of McDonnell Boehnen Hulbert&Berghoff LLP. Both specialize in intellectual property law.

New York--Though it’s a company that makes its money selling in bulk, Costco likely is fine with notching legal victories in its battle with Tiffany & Co. one by one.

On Jan. 17, a federal judge ruled that Costco Wholesale Corp. could proceed to trial with its argument that the word “Tiffany” in the context of ring settings is now a generic term used to describe any solitaire diamond ring setting with six prongs and, therefore, is no longer a trademark.  

In her ruling, U.S. District Judge Laura Taylor Swain wrote that while none of the evidence presented by Costco is conclusive, it is “sufficient to frame a genuine factual dispute as to whether the terms ‘Tiffany’ and/or ‘Tiffany setting’ have a primarily generic meaning in the minds of members of the general public in the context of ring settings.” 

Tiffany originally filed suit against Costco in February 2013, charging the Issaquah, Wash.-based warehouse retailer with trademark infringement for selling engagement rings identified as “Tiffany” even though Tiffany has never sold its rings through Costco.

The win was an important one for Costco, but the battle between these two retail giants--both of which rank in the top 10 in U.S. fine jewelry sales--has only just begun, one Chicago attorney says. 

In a recent interview with National Jeweler, Emily Miao, a partner at McDonnell Boehnen Hulbert & Berghoff LLP in Chicago, and associate Nicole E. Grimm talked about the ruling’s impact on the case overall. 

Miao says it evens the odds in a case where Tiffany once held a very slight edge. It also brings to light a simple question: Was pursuing a lawsuit in Tiffany’s best interest?  

She says no. The New York-based jeweler issued a cease-and-desist letter, and Costco removed the offending signage that contained the word “Tiffany.” 

Tiffany, Miao says, should have left it that. “Essentially, they used a cannon to kill a fly when a flyswatter would have been enough,” she says. “Now they realize Costco is going to fight them. And they were not expecting Costco to put up this kind of fight.” 

Trial dates in the case will be set at the final pre-trial hearing, which is scheduled for June 27. 

National Jeweler: What is the significance of the judge’s latest ruling in the Tiffany vs. Costco case?
Emily Miao: She had ruled that Costco may proceed with its

counterclaim argument. This is Costco’s main defense. The decision indicates, at least from the judge’s point of view, that there is genuine dispute over whether the Tiffany mark might have become at least partly genericized with respect to engagement ring settings.

Costco’s evidence of genericism is enough to bring the issue to trial. The judge in this case is not going to allow Tiffany to get summary judgment on Costco’s counterclaim. This is what we would consider a win for Costco, at least for getting the main argument into trial.

Nicole E. Grimm: The case is going to go forward on this issue and it doesn’t get dismissed as Tiffany had asked. 

NJ: What is the next step in the case? Does Tiffany have the ability to appeal this decision? 
EM: What Tiffany can do is a file a request for reconsideration on their summary judgment motion asking to dismiss Costco’s counterclaim. But those type of reconsiderations requests are almost doomed. They will probably not prevail. 

NJ: Why are they usually doomed? 
EM: They are going to have to show the judge in this case what information she overlooked that was part of their original motion. If there was anything that was important that should have been seen, it would have been in that motion. They probably will not succeed.

Tiffany has until June 27 to file other motions. It can look for other issues and use that to file motions. It doesn’t mean they can’t do anything between now and when the trial occurs. 

NJ: How, in your eyes, does this decision impact the landscape of the case?
EM: It is a win for Costco in one sense, but the war has barely started. The decision, even though it was important for Costco, really doesn’t impact the case. [Costco’s] main defense is the genericism argument that they are making. The fact that the judge is allowing it to go to trial is important to Costco.

[But] the judge also said that the evidence that Costco presented of genericism is not conclusive. 

NJ: Where do you see this case heading?
EM: The case is going to be a trial by jury. It’s going to be really hard to predict how the jury will decide in this case. Tiffany is such a well-known, venerable brand. I think it would be hard to find anyone (for the jury) who hasn’t heard of Tiffany and thought about it in a positive way. 

[But] if Costco’s evidence of genericism is compelling then that would sway a jury as well. Tiffany is going to be put in a strange position in trying to differentiate between their own branded rings and Tiffany-style ring settings. It’s going to be tough. I am not exactly sure how Tiffany is going to deal with this issue.

NG: The judge is allowing the jury, essentially, to decide whether the term “Tiffany” and the term “Tiffany setting” is generic, even though Costco was only using the word “Tiffany” in its signage. 

The point of interest here is that the judge in the opinion found that there was a genuine dispute of fact as to whether the terms “Tiffany” and/or “Tiffany setting” have become generic for ring settings to the public, even though Costco’s use of the term “Tiffany setting” was never in dispute. Costco used the term “Tiffany” not “Tiffany setting” in the point-of-sale signs for its diamond engagement rings, which is what prompted Tiffany’s lawsuit.  

Tiffany argued in its reply to Costco’s counterclaim that: “The POS signs did not say ‘Tiffany Setting,’ and the counterclaim concerning that phrase was included for the improper purpose of deflecting public attention from what it was that [Costco] actually did.”  

However, in light of the judge’s recent opinion, and despite Tiffany’s arguments, a jury may have a chance to decide the meaning of both terms, instead of just the term “Tiffany.”

NJ: Are you fairly certain it will go to trial?
EM: Both sides have deep pockets. They can certainly fuel a battle. They are both well-funded corporations, both major players in their industries. I can’t see how this case is going to settle. I think they are just going to march through to trial.

I am surprised Tiffany allowed it to go this far. They’ve essentially jeopardized their trademark. They should have just chastised (Costco) for those advertisements. They launched a lawsuit just thinking that Costco wouldn’t fight that much. I think Tiffany was surprised.

NJ: Are you saying that a lawsuit wasn’t the best course of action for Tiffany in this situation? 
EM: Yes. I think they could have just done this with a warning letter or some sort of discussion. It didn’t have to be dealt with in a lawsuit. They (Tiffany) are probably very surprised by Costco’s reaction because Costco is going full-force with the lawsuit. And the fact that the judge did not dismiss their counterclaim is a win for Costco. 

But it’s not the end of the war. The war has just barely begun. 

NJ: Who will win?
EM: I would have said earlier 51 percent Tiffany, 49 percent Costco. Now with this motion being decided it’s about 50/50. It’s really now a battle between Tiffany and Costco to try to persuade the jury. It’s 50-50 and now it’s up to the jury.  

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Daughters of the Deep indicolite earrings
EditorsNov 06, 2026
The Spectrum Pieces I Can’t Stop Thinking About

From a Betta fish brooch to a “dragon’s trove” of zircon eggs, here are seven pieces that’ve stuck with Associate Editor Lauren McLemore.

Pat Pruitt Dragonfly Earrings
TrendsNov 06, 2026
Pat Pruitt’s DragonFly Earrings Take Flight on Election Night

Groundbreaking New Mexico Governor-elect Deb Haaland wore the earrings, our Piece of the Week, when she declared victory on Tuesday.

GCAL 8X_NJSB_1.jpg
Supplier BulletinNov 05, 2026
Winning With GCAL 8X®: What’s Working at the Counter

Sponsored by GCAL by Sarine

overnight btyb 1026.png
Brought to you by
How Overnight Mountings’ Bridal Builder Makes Custom Engagement Ring Design Easier to Sell

With customization becoming more expected in engagement ring shopping, the Bridal Builder makes the process tangible.

Wrapped holiday gift boxes
SurveysNov 05, 2026
What Retailers Should Know About Holiday Shoppers This Year

From shrinking budgets to AI elves, here are five takeaways from holiday reports by Bain, Adobe, Mastercard, NRF, and insights from YouGov.

Weekly QuizNov 05, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Little Pet Portrait Pendants by Russell Jones & Judi Powers
CollectionsNov 05, 2026
Judi Powers, Russell Jones Unleash Joy With New Collaboration

The designers combined their talents for Little Pet Portraits, hand-painted miniatures of our best friends set in a piece of jewelry.

Brilliant Earth Elizabeth Taylor jewelry
FinancialsNov 05, 2026
Brilliant Earth Continued to Resonate With High-Income Shoppers in Q3

Its non-bridal fine jewelry remains the star of the show, recently launching new collections inspired by Elizabeth Taylor and Jane Goodall.

DeBeersICONS_TITLE1_CUSTOMCONTENT_1872x1052 (1).jpg
Brought to you by
A Diamond Is Forever Launches 2026 Holiday Campaign Championing Natural Diamonds

A Diamond Is Forever's holiday campaign reimagines natural diamond icons for a new generation celebrating individuality.

GIA logo
GradingNov 05, 2026
GIA to Offer Next-Day Holiday Services

The lab will bring back its complimentary next-day service for some reports starting next week.

Cartier bracelet and ring
CrimeNov 04, 2026
$250K+ in Undeclared Cartier Jewelry Seized at Philadelphia Airport

A Pennsylvania woman failed to declare a ring and a bracelet, discarding the boxes and receipts to conceal the purchases, officials said.

Pandora celestial chandelier earrings
FinancialsNov 04, 2026
Pandora’s Q3 Sales Up 7% Amid Focus on Design

New collections and relevant marketing pushed the company forward, while Pandora’s lab-grown diamond sales continue to lag.

NYC Jewelry Week Biolgems Jewelry Exhibition
Events & AwardsNov 04, 2026
NYC Jewelry Week 2026 Is the Largest Edition Yet

The citywide celebration, slated for Nov. 16-22, is set to host more than 175 events, including live jewelry-making demos.

Lanessa Elrod
MajorsNov 04, 2026
Bergdorf Goodman Names New President

Lanessa Elrod, former president and CEO of Louis Vuitton Americas, has stepped into the role as the retailer celebrates 125 years.

Replica of Infinity Gauntlet
AuctionsNov 03, 2026
Infinity Gauntlet Set With 170+ Carats of Colored Gemstones Up for Auction

A replica of one of the most powerful objects in the Marvel Cinematic Universe, the glove is heading to auction next month in Abu Dhabi.

Arthur Klein
IndependentsNov 03, 2026
Longtime Jewelry Marketer Arthur Klein Dies at 89

Klein, who had his own marketing agency and worked for Gabriel & Co. and Trans American Diamond, is remembered as a kind man.

Zadok Jewelers
IndependentsNov 03, 2026
Zadok Jewelers Toasts To 50 Years With Diamond Bracelet Giveaway

To enter the giveaway, locals can purchase a featured beverage from one of eight participating restaurants in Houston and Austin, Texas.

David Yurman Gem Awards Grant 2027 Graphic
Events & AwardsNov 03, 2026
David Yurman Gem Awards Grant Opens 2027 Applications

The grant recipient will be awarded $50,000 as well as mentoring meetings with executives at David Yurman and other industry executives.

Kirstin Viland, Joanna Kovacs, Shari Lukacs
Events & AwardsNov 03, 2026
NAJA, Instappraise Name 2026 Scholarship Winners

The winners include a non-NAJA member seeking training, a member beginning NAJA courses, and a member becoming a Certified Master Appraiser.

Sothebys Romanov sapphire
AuctionsNov 02, 2026
197-Carat ‘Romanov Sapphire’ Heads to Sotheby’s Geneva

The rare jewel, which has links to Russia’s Romanov dynasty, is estimated to fetch up to $2 million.

Fake Audemars Piguet watch
CrimeNov 02, 2026
Customs Seizes More Than 400 Fake Audemars Piguet Watches

It is one of several seizures of counterfeit jewelry and watches by U.S. Customs and Border Protection officials in Louisville this year.

Jewelers of America new board members
MajorsNov 02, 2026
Lawrence Bock, Caryl Capeci, Amanda Coleman-Phelps Join JA Board

Jewelers of America announced the additions to its board of directors following its annual general meeting, held last week.

Kristi Yamaguchi Wearing Always Dream Collection
CollectionsNov 02, 2026
Olympian Kristi Yamaguchi, Heller Jewelers Expand ‘Always Dream’ Collection

The jewelry collection supports Yamaguchi’s Always Dream foundation, which provides reading and educational resources to families in need.

2026 AGTA Spectrum & Cutting Edge Awards Best Of Winners
Events & AwardsOct 30, 2026
Illuminating Carved Paraiba Pendant, Suite of Moonstones Wow at Spectrum Awards

Spectrum’s “Best of Show” honors went to a 101-carat Paraiba carved to look like Medusa that has a magnet-activated LED light.

Edina Kiss Eye Pendants on Charm Necklace
TrendsOct 30, 2026
Edina Kiss’ Pendants Say ‘Eye’m Watching You’

Our Halloween Pieces of the Week are four “Eye” pendants, each set with colorful gemstones.

Alexis Hoopes
MajorsOct 30, 2026
The RealReal Hires Former eBay Exec as New Chief Merchandising Officer

Alexis Hoopes expanded eBay’s “Authenticity Guarantee” program during her tenure.

Rolex store exterior Bellevue Washington
WatchesOct 29, 2026
Bucherer Opens Rolex Boutique in Washington State

The Rolex-owned retailer’s new 4,700-square-foot store’s façade honors the Pacific Northwest’s evergreen forests.

Norma Wellington spider web pendant
TrendsOct 29, 2026
Amanda's Style File: All Treats, No Tricks

Get into the Halloween spirit with this roundup of 13 spooky jewels.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy