Court throws out Tiffany's judgment against Costco over fake 'Tiffany' rings

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NEW YORK (Reuters) – A federal appeals court on Monday overturned Tiffany & Co’s $21 million judgment against Costco Wholesale Corp (NASDAQ:COST) over the warehouse club chain’s sale of unbranded diamond engagement rings bearing the “Tiffany” name.

In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said it agreed with Costco that its use of the word “Tiffany” was unlikely to confuse customers, and that Costco was entitled “in good faith” to describe the style of its rings even if confusion were likely.

The appeals court returned the case to a federal district court for a new trial.