LVMH Sued by Watch Skins for Patent Infringement on NFT Technology

Luxury fashion conglomerate LVMH is embroiled in a legal dispute with Watch Skins Corporation, a company specializing in non-fungible token (NFT) skins for watches. The lawsuit, filed on March 10 in a Texas federal court, alleges that LVMH has infringed on Watch Skins' patented NFT display technology. Watch Skins claims that LVMH's TAG Heuer smartwatch and other products from the conglomerate's brands unlawfully use technology based on three patents owned by Watch Skins.

The first patent covers a system that verifies NFT ownership before allowing it to be displayed on a watch face. The second patent involves a system where an NFT must be verified through a blockchain wallet before being displayed on a smartwatch. The third patent focuses on the retrieval and display of customized watch faces based on NFT ownership. Watch Skins alleges that TAG Heuer's smartwatch, the Connected Calibre E4, infringes on these patents by allowing users to display NFTs from their crypto wallets and guaranteeing the authenticity of the displayed works.

Watch Skins Corporation has requested a jury trial and compensation for lost profits and royalties due to the alleged infringement. The company also seeks a court order preventing LVMH from further use of the patented technology. Watch Skins had previously launched the world’s first blockchain NFT watch face marketplace, offering consumers the ability to purchase authentic, licensed smartwatch faces from their favorite brands.

The lawsuit highlights the growing importance of NFT technology in the luxury goods industry. LVMH, which owns dozens of well-known luxury brands, has been exploring the use of NFTs to enhance the ownership experience for its customers. The inclusion of NFT certificates in luxury watches, for example, can update ownership history and unlock VIP events, adding value to the products.

The legal battle between Watch Skins and LVMH underscores the complexities and challenges of integrating new technologies into established industries. As NFTs and blockchain technology continue to evolve, companies must navigate the legal landscape to protect their intellectual property and ensure compliance with patent laws. The outcome of this lawsuit could set a precedent for future disputes involving NFT technology and patent infringement in the luxury goods sector.