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Diamonds are forever, and so are the court cases about them

Jurisdiction: United States; historical case commentary. Reviewed 27 October 2026.

The Tiffany/Costco dispute is a useful example of the difference between overturning summary judgment and finally deciding that conduct is lawful. It concerns trade marks and alleged counterfeiting, not the loss of copyright through a generic brand name.

The label at issue

Costco used “Tiffany” in descriptions of rings. Tiffany challenged that use, while Costco contended that the term described a setting and raised a descriptive fair-use defence. The legal question required attention to the actual signs, consumer understanding and context.

What the appeal decided

On 17 August 2020, the Second Circuit vacated the judgment against Costco and remanded for further proceedings. It found factual questions suitable for trial concerning confusion, good faith and the defence. It did not conclusively hold that no reasonable jury could ever find for Tiffany, or cancel the Tiffany brand.

Later development

Reuters reported in July 2021 that the parties settled the lawsuit. This article therefore no longer predicts that litigation will continue indefinitely. A settlement does not supply a new merits ruling resolving every disputed issue.

Genericness and descriptive use

A popular brand does not automatically become generic merely because people use it casually. Genericness and fair descriptive use are distinct questions. Do not treat examples such as tissue or fastener brands as judicial findings that their registrations have vanished.

Sources and further reading

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