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Diamonds Direct USA filed suit against BFJ Holdings, doing business as Capri Jewelers, for trademark infringement, unfair competition, false advertising and for violating Virginia’s consumer protection act. Diamonds Direct, which is based out of North Carolina, explained in court papers that in an effort to expand into Richmond, Virginia, it had secured a new location and contracting services to construct the retail space. In January 2012, Diamonds Direct filed its corporate papers under the laws of the Commonwealth of Virginia in preparing to open the new store.

While Diamonds Direct claimed to have kept its plans confidential, and negotiated confidentiality agreements with its contractors, an employee of one of those service providers allegedly informed Capri Jewelers of the plaintiff’s plans. Diamonds Direct alleged that Capri Jewelers, upon learning this new would-be competitor was opening in Richmond, began an advertisement campaign using the phrase and signage of ”Diamonds Direct.” 

The plaintiff cited examples of radio commercials, billboards and print catch- phrases promoting ”Diamonds Direct” by Capri Jewelers, and the plaintiff also alleged that Capri Jewelers had never before used the term ”Diamonds Direct.”

”In its recent billboard advertisements, Capri Jewelers encourages consumers to ‘Come see our new Diamonds Direct collection,”’ which the plaintiff drew comparisons to the word new,  ”because [Capri] never had a Diamonds Direct collection prior to learning that Diamonds Direct was going to open a Richmond location,” according to the complaint.

Diamonds Direct argued that Capri Jewelers was using the term ”specifically to undercut Diamonds Direct before it could even enter the market, to cause confusion among consumers, and to harm Diamonds Direct.” Furthermore, Capri Jewelers registered the Diamonds Direct service mark, connected to a specific graphical depiction of the mark on April 16, which Diamonds Direct claimed it alone had already established this service mark in Virginia and elsewhere.

The plaintiff seeks an injunction requiring Capri Jewelers to immediately cease using the mark ”Diamonds Direct,” cancel its service mark request with Virginia, remove the  mark from all advertisements, and prohibit the use of this mark on future advertisements. Diamonds Direct also seeks financial compensation for damages suffered as a result of the alleged trademark infringement, unfair and deceptive business practices, attorneys’ fees and court costs.

Bonhams New York held a fine jewelry auction this past week and achieved a total of $4,585,400. The auction house observed ”energized bidding” during the sale from bidders in the room as well as from those participants online. The top lot of the sale, pictured, was a 14.82-carat, J, VVS1, marquise-cut diamond solitaire ring, with triangular cut shoulders and mounted in white gold that sold for $482,500 against a presale estimate of $250,000 to $300,000. A 20.59-carat cut-cornered rectangular-cut diamond solitaire sold well above estimate for $254,500 and a 4.42-carat cut-cornered rectangular-cut diamond solitaire ring sold for nearly twice its presale high estimate at $116,500.

Susan Abeles, the head of jewelry for Bonhams’ U.S., said, “We were thrilled to see some of our seasoned, experienced collectors return to the auction room after several years, as well as, eager new buyers. The success of this sale is evidence of a rejuvenated desire to buy jewelry.”

Fine gemstones drew the attention of several bidders with one item in particular –a whimsical purple sapphire, amethyst and diamond Cartier brooch designed as a turtle– selling for $68,500 against a presale estimate of only $10,000 to $15,000.

Jewelry manufacturer Michael M. is debuting the ”M. Collection” this month featuring  a line of 21 engagement rings and nine wedding bands. Each piece is manufactured Michael M.’s downtown Los Angeles workshop, using the finest quality of precious metals and diamonds. Price points for the settings start at $1,000 and are available at select U.S. retailers.

The M. Collection, the tenth bridal line from Michael M., places the diamond solitaire silhouette as the focal point of each engagement ring design, while still blending signature elements from their most popular styles. According to the company, the new line blends graceful curves and diamond accents with delicate hand-engraved details, all characterized by their femininity and dainty flourishes. Ladies’ wedding bands focus on the classic eternity style but they are updated with mixed diamond cuts and sizes.

Each piece in the M. Collection is engraved with a unique identification number ensuring authenticity, and a lifetime warranty guarantees heirloom quality jewelry for generations to come.

Michael M.’s chief executive, Peter Meksian, said, ”The M. Collection was inspired by feedback from our loyal fans who admire our designs and quality craftsmanship, but can’t initially afford a $20,000 ring. They can now walk out of their local jeweler with a complete customized Michael M. engagement ring for a fraction of that price.”

The National Union of Mine Workers in South Africa (NUM) has called a strike at Namakwa Diamonds’ operations in the North West Province as a result of a wage dispute, the company reported.

Namakwa noted that the negotiations are ongoing and the strike is not expected to have an impact on production output for the year. Despite the strike, the company’s 2012 production guidance remains at 20,000 carats, Namakwa said.