Opinion ID: 4556092
Heading Depth: 4
Heading Rank: 4

Heading: Overall Likelihood of Customer Confusion

Text: We conclude that Costco’s evidence has, when considered in the aggregate, created a genuine question as to the likelihood of customer confusion. See Star Indus., 412 F.3d at 383. Our conclusion rests primarily on the combination of (1) Costco’s evidence that “Tiffany” is a broadly recognized term denoting a particular style of pronged ring setting and (2) its further indications, backed by prior pronouncements of this Court, that purchasers of diamond engagement rings educate themselves so as to become discerning consumers. Affording full credit to this evidence, a jury could reasonably conclude that 30 consumers of diamond engagement rings would know or learn that “Tiffany” describes a style of setting not unique to rings manufactured by Tiffany, and recognized that Costco used the term only in that descriptive sense. Such consumers may also be distinctly capable of recognizing that Costco’s rings were not manufactured by Tiffany—based, for example, on their price, place of purchase, packaging, or paperwork—and consequently be particularly unlikely to be confused by any aspect of Costco’s point-of-sale signs. Moreover, any Costco customer looking at a Tiffany-set ring identified by a sign that includes the word “Tiffany” would also see a jewelry case full of other unbranded rings, each identified by a sign indicating its own setting type in a similar or identical way. To be sure, Tiffany has made a persuasive (and essentially unrebutted) showing that the general public associates its famous brand with high-quality engagement rings that compete directly with those sold by Costco. But even the potential for confusion inherent in such circumstances cannot dictate a judgment for Tiffany in light of Costco’s evidence that engagement-ring purchasers exercise care and become savvy, and that the context Costco provided at the point of sale was sufficient for those careful customers to recognize that its signs used “Tiffany” only as a generic descriptor. In short, Costco’s use of the word “Tiffany” to 31 describe engagement rings may have created a possibility of confusion. It may even be the more reasonable inference that confusion was likely. But in light of Costco’s competing evidence—and Tiffany’s failure to demonstrate that actual purchasers would not recognize the word “Tiffany” as denoting a commonly used setting style—we decline to hold that no reasonable jury could find that Costco’s signs were not confusing. 13 See Island Software & Comput. Serv., Inc. v. Microsoft Corp., 413 F.3d 257, 264 (2d Cir. 2005) (“[A]t the summary judgment stage, [even if one] inference . . . seems the better of the possible inferences that can be drawn, we must still draw all inferences in favor of the non-moving party.”).