LVMH faces lawsuit over NFT smartwatch patent infringement

Luxury fashion conglomerate LVMH is facing a patent infringement lawsuit filed by Watch Skins Corporation, a blockchain firm specialising in non-fungible token (NFT) technology for smartwatches.

The complaint, submitted on March 10 to a federal court in Texas, accuses LVMH of unlawfully using patented NFT display technology in its TAG Heuer smartwatch line.

Watch Skins alleges that its patented system enables users to verify NFT ownership and display authenticated digital artworks on smartwatch faces.

The company claims that TAG Heuer’s Connected Calibre E4 smartwatch and other LVMH products incorporate this technology without authorisation.

According to the filing, the patented features include verifying NFT ownership via blockchain wallets and retrieving customised watch faces based on NFT ownership.

The lawsuit also accuses LVMH of encouraging customers to infringe on these patents by providing instructions for using the NFT display features.

“The watch allows the NFT to be displayed if owned by the user’s crypto wallet [and] connects to a user’s crypto wallet to guarantee authenticity of works displayed,” the complaint states.

Watch Skins is seeking a jury trial, compensation for lost profits and royalties, and a court order preventing LVMH from further use of its patented technology.

The company previously launched what it described as the world’s first blockchain-based NFT watch face marketplace at the Consumer Electronics Show in Las Vegas in 2020.

The platform allows users to purchase licensed smartwatch face designs tied to NFTs.

LVMH, which owns high-profile brands such as Louis Vuitton, TAG Heuer, and Christian Dior, has not yet commented on the lawsuit.