A legal showdown is brewing in Texas as Watch Skins Corporation takes on luxury powerhouse LVMH, accusing the conglomerate of infringing on patented NFT technology.
The lawsuit, filed on March 10 in a Texas federal court, could have major implications for digital authentication in the luxury industry.
Watch Skins claims it developed a unique system for displaying verified NFT artworks on smartwatches and holds multiple patents. According to the lawsuit, TAG Heuer, a luxury watch brand under LVMH, allegedly used this technology in its smartwatch models without permission.
The dispute centers around three key patents:
- NFT Ownership Verification: Ensuring only authenticated owners can display NFTs on smartwatches.
- Blockchain Wallet Verification: Connecting a smartwatch to a crypto wallet for authentication.
- Dynamic Watch Face Retrieval: Custom watch faces are allowed based on verified NFT ownership.
Watch Skins argues that TAG Heuer actively encouraged customers to use these NFT display features, providing step-by-step instructions that directly leverage Watch Skins’ patented technology.
LVMH, the parent company of Louis Vuitton, TAG Heuer, Tiffany & Co., and Christian Dior, has aggressively pushed into the digital and blockchain space. The lawsuit highlights how luxury brands are increasingly using NFTs for authentication and customization, blurring the line between fashion and technology.
TAG Heuer, in particular, launched its NFT-enabled smartwatch feature in 2022, allowing users to connect their crypto wallets and display verified digital art on their watch faces. Watch Skins argues this move directly infringes on its intellectual property.
What’s at Stake?
Watch Skins is seeking a jury trial, financial compensation for lost profits, and an injunction preventing LVMH from further using its patented technology. This case could set a precedent for how digital ownership and blockchain authentication are protected under patent law.
The company’s blockchain NFT watch face marketplace, launched at the 2020 Consumer Electronics Show (CES) in Las Vegas, was the first of its kind, positioning Watch Skins as an early innovator. If successful, the lawsuit could force luxury brands to rethink their approach to NFT integration or negotiate licensing deals for patented technology.
This lawsuit is more than just a corporate dispute, it reflects the growing role of blockchain technology in high-end fashion and accessories. Luxury brands have embraced NFTs for digital collectables and as tools for authentication, exclusivity, and customer engagement.
If Watch Skins wins, it could reshape how brands adopt blockchain-backed authentication. If LVMH prevails, it may signal a weakened legal standing for NFT-related patents, potentially opening the door for broader use of similar technology across industries.
What Happens Next?
With no immediate resolution in sight, all eyes will be on how this case unfolds. A settlement could mean licensing agreements that reshape the NFT authentication market, while a prolonged court battle could set legal precedents for blockchain technology in the luxury space.
Either way, this lawsuit highlights the increasingly complex intersection between high fashion, digital assets, and intellectual property law—a space that will only continue to evolve.
