LVMH Moët Hennessy Louis Vuitton and TAG Heuer have landed on the receiving end of a new lawsuit accusing them of infringing a third party’s patent-protected NFT display technology for smartwatches. In the complaint that it filed in the U.S. District Court for the Eastern District of Texas on March 10, Watch Skins Corporation claims that LVMH and its watch brand TAG Heuer are on the hook for patent infringement as a result of their manufacture and sale of smartwatches that allegedly incorporate its patented blockchain authentication technology that enables users to showcase verified NFT artwork on smartwatches.
In the newly filed complaint, Watch Skins maintains that TAG Heuer’s Connected Calibre E4 smartwatch unlawfully integrates its patented NFT authentication system, which allows users to verify digital ownership of an NFT via blockchain and display authenticated digital assets on a smartwatch. Puerto Rico-based Watch Skins maintains that it has “made widespread and exclusive use” of its NFT technology, which was in development beginning in 2018 and was publicly unveiled at CES 2020. Fast forward to June 2022 and Watch Skins asserts that TAG Heuer introduced its “infringing” smartwatch features and has continued to market and sell the products ever since.
To make matters worse, Watch Skins claims that in addition to continuing to develop and market their smartwatch technology despite being aware of Watch Skins’ patents, demonstrating deliberate misconduct, TAG Heuer “continue[s] to actively encourage and instruct their customers (for example, through user manuals and technical documentation)” to use its watches to “directly infringe” Watch Skins’ parent-protected technology.
At the heart of Watch Skins’ complaint are three utility patents: Nos. 11,250,399 and No. 11,263,607, which extend to a “Watch Skins Selection Application with Blockchain Token,” and No. 11,822,296, which covers “Systems and Methods for Creating a Customized Watch Face and Retrieving the Watch Face to Be Displayed.”
With such alleged infringement in mind, Watch Skins is seeking a permanent injunction to prevent LVMH and TAG Heuer from further selling the allegedly infringing smartwatches, along with monetary damages, including an accounting of profits derived from the sales. It is also seeking enhanced damages for willful infringement, reimbursement of legal fees, and any other relief deemed appropriate by the court.
THE BOTTOM LINE: As luxury brands and sportswear giants, alike, increasingly explore blockchain technology and digital assets, and wearable tech more broadly, patent disputes, licensing deals, and even copyright issues have taken on a growing significance. (Much more about that here.)
The case is Watch Skins Corporation v. LVMH Moët Hennessy Louis Vuitton SE et al., 2:25-cv-00284 (E.D. Tex.).
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