Costco denied appeal in Tiffany trademark case

New York--The Second Circuit Court of Appeals has denied Costco Wholesale Corp.’s motion for a mid-case appeal in the trademark infringement lawsuit filed against it--and essentially won--by Tiffany & Co. 

Back in September, a federal district court judge ruled in Tiffany’s favor in the case, granting the retailer’s motions for summary judgement on claims that Costco engaged in trademark infringement and trademark counterfeiting by selling engagement rings labeled as Tiffany that were not, in fact, made by Tiffany.

The judge also dismissed Costco’s counterclaim that the term “Tiffany setting” had become generic and could be used by any company to describe a ring with multiple slender prongs holding a single stone.

Costco quickly filed an interlocutory appeal in the case, which is ongoing, as a jury is set to determine punitive damages early next year. Rarely granted, interlocutory, or interim, appeals are entertained to prevent irreparable harm to a person or entity while a lawsuit is pending. 

In filing its interim appeal, Costco asked that the appeals process be expedited because it claimed all the publicity following the September decision was hurting its reputation and “causing Costco to suffer every day,” court papers state.  

Tiffany objected to both the interim appeal and its expedition, pointing that the publicity surrounding the case was not “unusual, unexpected or unfair” and that Costco never objected to articles being published about the case before, particularly when the stories were about a decision that went in its favor. 

On Tuesday, the appeals court issued a succinct dismissal of Costco’s motion for an interlocutory appeal, stating that the case was not appealable at this point. 

Costco, however, can appeal both the summary judgement and the damages awarded following the conclusion of the jury trial.  

The trial in Tiffany v. Costco is set to begin Jan. 11, 2016 in New York, though the judge in the case has urged both sides to try to resolve their issues before it reaches that point.