The Swiss watch manufacturer Swatch is seeking $170 million in damages from Samsung for trademark infringement. However, the case goes beyond the amount of the claim itself and could set new precedents regarding the liability of technology platforms for apps created by third-party developers.
The proceedings are taking place at the High Court in London. Back in 2022, the court found Samsung liable for trademark infringement in relation to apps available on Galaxy smartwatches. The current stage of the proceedings concerns solely the amount of damages sought by Swatch. The judgement is due to be handed down shortly.
At the heart of the dispute are apps that allow users to download digital watch faces imitating the appearance of well-known models belonging to the Swatch Group, including the Omega and Tissot brands. Although the software was created by third-party developers, the court had previously ruled that Samsung was liable, partly because it controlled the approval process for apps available on its platform.
Swatch calculated its claim on the basis of hypothetical licence fees covering ten brands from the group’s portfolio. According to the manufacturer, the amount reflects the value, reputation and appeal of its trademarks. Samsung rejects these calculations, describing them as exorbitant. The company also argues that the apps in question generated negligible revenue and were removed once the issue was reported.
The case highlights a wider conflict between traditional Swiss watchmaking and the rapidly growing smartwatch market. Luxury watch manufacturers have for years built the value of their brands through limited product availability and strict control over their image. For this reason, Swatch has consistently refused to licence its designs to smartwatch manufacturers, arguing that this could undermine the exclusive nature of the brands.
The significance of the case may extend beyond the UK. The claim was filed before the end of the Brexit transition period and therefore also covers alleged infringements within the European Union market. The final ruling may also have implications for parallel proceedings being brought by Swatch against a Samsung subsidiary in the United States.
