August 8, 2007, 12:00 AM

Court decision scores knockout for Tiffany against jewelry knockoffs

A New York federal court has handed down a judgment in favor of Tiffany & Co. against Starglam Inc. and its principal owner, enjoining them from any further illegal use or infringement of the Tiffany name and trademark both online and offline.

A federal court in New York has entered a final judgment by consent for jewelry retailer Tiffany & Co. and against Starglam Inc. and its principal owner, enjoining them from any further infringement of the Tiffany name and trademark. Starglam had been charged with selling Tiffany knockoffs online and via retail stores.

Under the judgment, defendants paid Tiffany $950,000. The principal owner had previously pled guilty to charges of trademark counterfeiting and has served his sentence, Tiffany says.

“We are pleased to announce this judgment,” says Tiffany’s chairman and CEO Michael Kowalski. “Trademark counterfeiting severely damages brand owners and consumers alike. The way to stop it is to take aggressive action against the counterfeiters and make them pay, criminally as well as civilly. That’s what happened in this case which should send a message to anyone trying to sell counterfeit Tiffany merchandise.”

Starglam was charged with selling the counterfeits on the Internet, including on eBay. Tiffany, No. 98 in the Internet Retailer Top 500 Guide, has a civil suit awaiting trial in a federal court in New York against eBay because of the large amount of counterfeit Tiffany silver merchandise that has been sold on eBay auction sites, Tiffany says.

Starglam also was accused of distributing counterfeit silver Tiffany merchandise, some of which was purchased in Asia and some in New York, Tiffany says. The government brought proceedings against the New York seller who was prosecuted and convicted.

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