Luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE and its subsidiaries are facing a new lawsuit in the U.S. District Court for the Eastern District of Texas. The lawsuit, filed by Watch Skins Corporation, alleges that TAG Heuer’s Connected Calibre E4 smartwatch infringes on three of its U.S. patents related to NFT display and verification.
The core allegations of the lawsuit claim that TAG Heuer’s NFT-enabled smartwatch uses technology that is very similar to Watch Skins’ patented system. This system authenticates NFT ownership through a blockchain wallet before displaying digital artwork on a watch face. The complaint points to TAG Heuer’s promotional materials, which describe the Connected Calibre E4 as a product that allows users to display NFT artworks on their watch by connecting their crypto wallet to guarantee authenticity.
Watch Skins, headquartered in Puerto Rico, asserts that its patented platform is designed to verify token ownership and enable users to buy, sell, and showcase NFTs on wearable devices. The company’s patents cover methods of retrieving and displaying NFT-based watch faces, preventing the display if the user does not hold the associated token.
The technology background of the case reveals that Watch Skins began demonstrating its NFT display concepts in 2020 and launched a wearable NFT marketplace in 2021. By the time TAG Heuer introduced its NFT smartwatch features in 2022, Watch Skins claims to have already commercialized the patented technology. The lawsuit emphasizes that TAG Heuer’s use of a blockchain wallet to authenticate NFT ownership and block display for non-owners is what Watch Skins’ patents protect.
Legal claims in the lawsuit include direct infringement, induced infringement, and willful infringement against LVMH and TAG Heuer for continuing to use and market the disputed technology without a license. Watch Skins seeks a declaration of infringement, monetary damages, and a permanent injunction preventing further sales of the Connected Calibre E4 smartwatch or any other device deemed to infringe its patents.
The industry significance of this lawsuit is notable, as major luxury houses and consumer tech brands are exploring blockchain features for new revenue streams. If Watch Skins succeeds in protecting its patents, companies may need to negotiate licensing deals for NFT display technology or face litigation. TAG Heuer and other LVMH brands have shown interest in Web3 applications and view NFTs as a way to enhance product exclusivity and customer engagement.
The Eastern District of Texas, known for handling high-stakes tech disputes, will determine the validity of Watch Skins’ patents and whether TAG Heuer’s implementation violates those claims. A ruling in favor of Watch Skins could discourage other wearable manufacturers from rolling out similar NFT features without thorough patent reviews.
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