Swiss watchmaker Swatch is currently seeking $170 million in damages from Samsung, alleging trademark infringement. Swatch claims that Samsung permitted third-party applications on its smartwatches to offer digital replicas of watches from Swatch-owned brands, including luxury labels like Omega and Tissot.
This legal dispute began in 2019, and in 2022, the High Court in London found Samsung liable for trademark infringement. A British judge is anticipated to issue a ruling on the damages shortly. The ongoing case also covers infringement within the European Union, predating the UK's departure from the bloc. The outcome is also expected to pave the way for a similar claim by Swatch against a Samsung subsidiary in the United States.
Swatch's demand of $170 million represents what it considers the appropriate licensing fees for using 10 of its brand assets. Samsung, on the other hand, claims it only earned approximately $300 in commissions from these third-party apps, which were downloaded about 160,000 times across the UK and EU before being removed. Samsung has described Swatch's demands as "extravagant" and "outsized," while Swatch has accused Samsung of "large-scale appropriation" of its valuable trademarks.
Swatch, which produces a wide range of timepieces from affordable options to high-end luxury models and offers connected watches like SwatchPAY!, has not yet launched its own smartwatches. This case highlights the growing competition from smartwatch manufacturers like Samsung, Apple, and Huawei, which pose a significant threat to the traditional Swiss watch industry.
