A court in the US says jewellery firm Tiffany could recover US$19.4m (€16.5m) in damages against wholesaler Costco.

It relates to Costco selling engagement rings with the 'Tiffany' name.

A court in New York denied Costco's claim that 'Tiffany' is a generic term for a pronged ring.

Tiffany & Co. jewelers on Fifth Avenue in Manhattan, New York in 2016 | Image: Richard B. Levine/SIPA USA/PA Images

It previously found Costco liable for trademark infringement in its use of 'Tiffany' on signs in jewelry cases.

Costco says it will appeal.

It says the word 'Tiffany' in its signs was meant to convey only that the rings had this style of setting, not that the rings were Tiffany & Co. brand rings.