Costco in trouble for "Gray Market Goods"

[piratepress]

I see Tiffany's is cracking down on Costco for selling their items. I wonder if Rolex can be very far behind?

http://www.msn.com/en-us/money/compa...JDQ?li=BBnb7Kz

[Zakalwe]

They weren't selling Tiffany goods. They were selling cheaper jewellery and calling it Tiffany, arguing that it ought to be considered a generic term. Seems like a pretty egregious trademark violation.

[beshannon]

Not even remotely the same thing. If you read the article:

While Costco had argued that the word was understood as a generic reference to a ring's setting, not the brand itself, a court determined in 2015 that selling items described simply as "Tiffany" infringed on Tiffany's trademark.

This isn't the first time Costco has been accused of falsely marketing designer products.

Costco sold rings and implied they were made by Tiffany.

Rolex watches are made by Rolex. They are not selling generic watches and calling them Rolex.

[todd.hepburn]

In this instance, Costco wasn't selling a branded item, rather, a ring marketed as Tiffany, when it was just a Tiffany setting. Sounds to me like there was a genuine desire to deceive


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[tyler1980]

Originally Posted by Zakalwe

They weren't selling Tiffany goods. They were selling cheaper jewellery and calling it Tiffany, arguing that it ought to be considered a generic term. Seems like a pretty egregious trademark violation.

yeah that is pretty bad. You can make the argument with Kleenex referring to all facial tissues but even generic brands can't get away with calling them that. We all call them Kleenex though no matter what the brand actually is.

[piratepress]

What I found interesting was the statement, "Costco also has a history of selling what Refinery 29 calls "gray market goods" — designer items that were obtained through channels that aren't illegal, but that are unintended by the original makers."

As such, I'm sure Rolex is not pleased with Costco selling their watches.

[Jimbogigolo]

Still love Costco. #1 wholesale retailer.


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[tyler1980]

Originally Posted by Jimbogigolo

Still love Costco. #1 wholesale retailer.


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I do think they would be mad at me though if i opened a #1 wholesale retailer and called it Cost Co

[Jimbogigolo]

Originally Posted by tyler1980

I do think they would be mad at me though if i opened a #1 wholesale retailer and called it Cost Co

Maybe! I can spend hours and hours whenever I go. I go with the intent of buying one thing but leave with a dozen other stuff. I am still hoping to one day leave Costco with a green box 🤴🏽


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[piratepress]

Originally Posted by Jimbogigolo

Still love Costco. #1 wholesale retailer.


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I love them too and was excited when we finally got one. However, I draw the line at buying a new Rolex from them.

[Knappo 1307]

Originally Posted by tyler1980

yeah that is pretty bad. You can make the argument with Kleenex referring to all facial tissues but even generic brands can't get away with calling them that. We all call them Kleenex though no matter what the brand actually is.

"We all" don't...

[tyler1980]

Originally Posted by Knappo 1307

"We all" don't...

do you call everything a band-aid or do you say adhesive bandages if you are describing what to put on a cut? Maybe thats a better example.

In any case my point was its a generic term in common usage but that still isn't enough for other companies to go a head and call them that. If you can't get away with it for a far more generic term then certainly you should not be able to justify calling something Tiffany.

[PJ S]

^
Tissues and plasters – if you want a brand name that moved into the generic term domain, you need look no further than Hoover.
Instead of vacuum(ing), many people will say hoover(ing) – absolutely no-one says they are going to Dyson/Oreck/Miele their carpets.

[tyler1980]

Originally Posted by PJ S

^
Tissues and plasters – if you want a brand name that moved into the generic term domain, you need look no further than Hoover.
Instead of vacuum(ing), many people will say hoover(ing) – absolutely no-one says they are going to Dyson/Oreck/Miele their carpets.

that is very country specific... when i first moved here i thought everyone actually had Hoovers. Never heard anyone say that before in my life. Now i admit thats my preferred term

[tamiya]

No idea what a "tiffany" ring even looks like.

I thought "tiffany" was just a brand of little pale blue boxes!

[tyler1980]

Originally Posted by tamiya

No idea what a "tiffany" ring even looks like.

I thought "tiffany" was just a brand of little pale blue boxes!

its the brand but also refers to the "Tiffany setting"

https://en.wikipedia.org/wiki/Prong_setting

Other jewelers can use multi pronged solitaire settings but can't call them a "Tiffany setting"

[ᕦ(ò_óˇ)ᕤ{Adventure!)]

I've always associated Tiffany's with six-pronged settings and engraving of crackerjack prizes. ( ´_ゝ`)

[Zakalwe]

Originally Posted by tyler1980

that is very country specific... when i first moved here i thought everyone actually had Hoovers. Never heard anyone say that before in my life. Now i admit thats my preferred term

I grew up not even really understanding the term "vaccum-cleaning" because of the ubiquity of Hoover. Then again you'll almost never hear a Brit asking for Kleenex (tissue) or a Band-Aid (plaster).

There is perhaps one generic product that is almost universally referenced as a particular brand that isn't country specific, and I'm not referring to the rather fetching 5-digit reference GMT Master II when I say...

COKE!

Does anybody ask for a "cola" when they want a refreshing carbonated beverage?

[tyler1980]

Originally Posted by Zakalwe

I grew up not even really understanding the term "vaccum-cleaning" because of the ubiquity of Hoover. Then again you'll almost never hear a Brit asking for Kleenex (tissue) or a Band-Aid (plaster).

There is perhaps one generic product that is almost universally referenced as a particular brand that isn't country specific, and I'm not referring to the rather fetching 5-digit reference GMT Master II when I say...

COKE!

Does anybody ask for a "cola" when they want a refreshing carbonated beverage?

Ha... in texas coke refers to almost all carbonated sugar drinks, not just the brown colored ones.

most of the rest of the country it means the brown colored specifically. But yes, its a pretty generic term in common usage.

[piratepress]

My uncle in the Midwest used to refer to all carbonated soft drinks as "Soda Pop".

[SDRider]

Originally Posted by PJ S

^
Tissues and plasters – if you want a brand name that moved into the generic term domain, you need look no further than Hoover.
Instead of vacuum(ing), many people will say hoover(ing) – absolutely no-one says they are going to Dyson/Oreck/Miele their carpets.

To be honest, I think that's dying out. I don't know when the last time I heard someone say that.

I take umbrage with the fact that Costco touts their Kirkland vodka as being comparable to Grey Goose... it isn't.

[tyler1980]

Originally Posted by SDRider

To be honest, I think that's dying out. I don't know when the last time I heard someone say that.

I take umbrage with the fact that Costco touts their Kirkland vodka as being comparable to Grey Goose... it isn't.

come to the UK, its the go to term. I don't talk Vacuums very often but whenever the subject comes up is hoover.

This thread is interesting just for the seeing regional differences in what generic terms are used for what products.


Kirkland vodka, ill take your word as far as taste as I'm not trying it.

[fusionstorm]

Mass market commodity goods should never be compared to luxury goods when it comes to the effects of competitive branding. Mass market goods typically benefit from people co-opting their name as the generic term. Instruct someone to go to the stop by a store for some Kleenex or Band-Aids, and there's a decent chance that someone walks out with Kleenex and Band-Aid branded product, and not a competitive version.

Diamond engagement rings are viewed by most as a once in a lifetime purchase (I know, doesn't always work out that way, but every first-time buyer/recipient doesn't expect a repeat transaction in the future at that given moment). Tiffany is more than right to defend a brand and cachet that has taken considerable decades to build. Costco knew full well what it was trying to do, as it fits into their overall corporate strategy (the Kirkland version is as good as, if not better, than the name brand version). They rightfully lost IMO. And this is the opinion of someone who loves shopping at Costco, and easily spends over $35K a year on goods and services from Costco.

[GLADIATOR]

Interestingly OMEGA sued COSTCO for selling Omega watches, bought from grey channel cheaply.
It went to Supreme Court, that voted in COSTCO favour.

[tyler1980]

Originally Posted by GLADIATOR

Interestingly OMEGA sued COSTCO for selling Omega watches, bought from grey channel cheaply.
It went to Supreme Court, that voted in COSTCO favour.

yes, but they were not selling costco branded watches and calling them omega watches. They were selling grey market authentic omegas which is fine. Different than the tiffany lawsuit.

Am i reading that correctly as i didn't know about that lawsuit?

[GLADIATOR]

Originally Posted by tyler1980

yes, but they were not selling costco branded watches and calling them omega watches. They were selling grey market authentic omegas which is fine. Different than the tiffany lawsuit.

Ami reading that correctly as i didn't know about that lawsuit?

Yes fully understand, just pointing it out for people thinking they can not sell grey purchased legitimate goods.

Strangle enough the British Supreme Court just yesterday ruled its illegal to sell "grey" product without the trade mark owners agreement

[tyler1980]

Originally Posted by GLADIATOR

Yes fully understand, just pointing it out for people thinking they can not sell grey purchased legitimate goods.

Strangle enough the British Supreme Court just yesterday ruled its illegal to sell "grey" product without the trade mark owners agreement

that is interesting. Didn't know about the British case.

[GLADIATOR]

Originally Posted by tyler1980

that is interesting. Didn't know about the British case.

Yes, it was in the times yesterday