Samsung Ordered To Pay $11.6 Million To Swatch Group Over Trademark-Infringing Smartwatch Apps
Samsung Electronics has been ordered by the UK High Court to pay $11.6 million to Swatch Group after allowing smartwatch applications that replicated the Swiss watchmaker’s luxury brands on its devices, Bloomberg reported. The dispute centred on digital watch faces made available through Samsung’s app store between 2015 and 2019. A previous ruling had established that the designs infringed…
Swatch Group has secured an $11.6 million judgment against Samsung Electronics in the UK High Court, stemming from Samsung's permitting of smartwatch apps that replicated Swatch Group's luxury trademarks on its devices between 2015 and 2019. The legal battle centered on digital watch faces accessible via Samsung's app store that infringed trademarks of 10 Swatch Group entities, including Omega, Longines and Breguet.
Swatch Group had originally sought $170 million in damages, while Samsung argued for a cap of $300. Judge Marcus Smith ultimately ordered Samsung to pay $11.6 million, considering the royalties from roughly 160,000 downloads of the infringing apps across Europe.
The court emphasized that the existence of such affordable or complimentary digital designs could undermine the reputation and exclusivity of Swatch Group's brands. The Swiss company had invested decades in establishing and promoting its trademarks, rendering their protection commercially significant. Additionally, the judge criticized Samsung's approach, implying the technology company placed little value on the trademarks and sought to downplay the infringement's significance.
Swatch Group praised the ruling, alleging Samsung had consistently underestimated the compensation owed for the usage of its renowned brands. Samsung, however, intends to review the judgment and explore all legal avenues, including the possibility of an appeal. The case may also have implications beyond the UK, as Swatch Group is pursuing related proceedings in a US court involving the same 10 brands.
This situation underscores the evolving legal challenges confronting technology companies when digital platforms enable third-party applications to reproduce established luxury trademarks.
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