Luxury Watch Lawsuit: Watch Skins vs. TAG Heuer NFT Patent Clash

Watch Skins Sues TAG Heuer Over Alleged NFT Patent Infringement

In a legal battle that brings the worlds of luxury watches and blockchain technology head-to-head, Watch Skins Corporation has filed a lawsuit against LVMH, the parent company of renowned watch brand TAG Heuer. The lawsuit, lodged in a Texas federal court on March 10, claims that LVMH unlawfully integrated Watch Skins’ proprietary NFT display technology into its smartwatches, infringing on multiple patents in the process.

At the center of the dispute is Watch Skins’ innovation—a patented system that enables users to showcase verified NFT artworks on smartwatch displays. The company asserts its technology is protected by three patents, each outlining distinct functionalities. The first ensures that an NFT’s ownership is verified before it appears on a watch face. The second patent enhances security by requiring authentication through a blockchain wallet. The third patent focuses on retrieving and displaying customized watch faces based on NFT ownership.

According to the complaint, TAG Heuer’s smartwatch models allegedly incorporate these patented mechanisms, and the company has even provided customers with guidance on how to utilize these NFT display features. The legal document explicitly states, “The watch allows the NFT to be displayed if owned by the user’s crypto wallet [and] connects to a user’s crypto wallet to guarantee authenticity of works displayed.” Through these functionalities, Watch Skins contends that TAG Heuer knowingly encouraged infringement on its patented technology.

LVMH, one of the world’s most influential fashion conglomerates, boasts ownership of several luxury brands, including Louis Vuitton, Givenchy, Christian Dior, Tiffany & Co., and Hennessy, alongside TAG Heuer. Given its vast portfolio spanning across fashion, jewelry, and premium beverages, the case against the corporation underscores the growing intersection of luxury goods and blockchain innovation.

As part of its legal pursuit, Watch Skins is demanding a jury trial, financial compensation for lost profits and royalties, and a court order to bar LVMH from further unauthorized use of its patented technology. This lawsuit signals a significant moment in the evolution of NFTs within the luxury watch industry, emphasizing the value of blockchain-backed digital ownership and its commercial implications.

The origins of Watch Skins’ groundbreaking technology trace back to 2020, when the company introduced the world’s first blockchain-based NFT watch face marketplace at the Consumer Electronics Show in Las Vegas. This mobile platform was designed to provide users with “the ability to purchase authentic, licensed smartwatch faces from their favorite brands,” according to the company’s earlier statements. By enabling customers to personalize their smartwatches with verified NFT designs, Watch Skins positioned itself as an innovator in the convergence of digital art and wearable technology.

As the case unfolds, it will likely prompt broader discussions on intellectual property rights in the digital collectibles space, particularly as luxury brands explore blockchain technology. Whether Watch Skins succeeds in its legal endeavor or not, the lawsuit underscores the increasing legal complexities surrounding NFTs and their integration into mainstream consumer products.