Swatch Seeks $170 Million in Damages Against Samsung for Trademark Infringement
Legal Battle Between Swatch and Samsung Over Trademark Infringement
Background of the Lawsuit
June 26 (Reuters) - Swiss watchmaker Swatch is seeking $170 million in damages in a lawsuit against Samsung in which it claims the South Korean electronics giant allowed digital clones of Swatch watches on Samsung smartwatches, the Financial Times reported on Friday citing court documents.
High Court Ruling and Trademark Infringement
Findings of Liability
A British judge is expected to rule on damages soon after the High Court in London in 2022 found Samsung liable for trademark infringement over third-party apps available on Samsung smartwatches. The apps enabled users to replicate popular models by Swatch-owned brands including luxury labels Omega and Tissot.
International Implications
The court case, which began in 2019 before Britain's official exit from the European Union, also relates to infringement in the bloc. The upcoming ruling is also expected to clear the way for a parallel Swatch claim against a Samsung subsidiary in the U.S., according to the FT.
Impact on the Watch Industry
Smartwatch Market Competition
The Swiss watch industry faces a growing threat from the fast-developing market for smartwatches, with companies like Samsung, Apple and Huawei among major producers.
Statements from Swatch and Samsung
Arguments Presented to the Court
The FT said representatives of Swatch and Samsung have filed written statements to the High Court which is now determining damages. In the reported statements, Swatch accused Samsung of "large-scale appropriation" of "valuable and carefully protected" trademarks, while Samsung called the demands "extravagant" and outsized.
Official Responses
A spokesperson for Swatch said the group would not comment on the ongoing legal procedure. Samsung did not immediately respond to a Reuters request for comment.
Swatch’s Position in the Connected Watch Market
Product Range and Strategy
Swatch, whose groups produce timepieces ranging from affordable plastic watches to luxury models worth tens of thousands of dollars, sells connected watches such as the SwatchPAY! but has so far not launched any smartwatches itself.
Reporting Credits
(Reporting by Alessandro Parodi in Gdansk and Marleen Kaesebier in Zurich; Editing by Susan Fenton)
