Samsung ordered to pay $11.6 million in landmark trademark clash with Swatch

Samsung has been ordered to pay £8.53 million ($11.6 million) to Swatch Group after being found liable for trademark infringement over third-party smartwatch apps which copied luxury watch designs.

The ruling by the High Court in London concludes a lengthy legal battle concerning digital “watch face” applications hosted on Samsung’s Galaxy App Store between October 2015 and February 2019.

The apps mimicked iconic designs from high-end watchmakers owned by Swatch, including Omega, Breguet, Blancpain, Longines, and Tissot.

Although the software was created by independent developers, Swatch argued that Samsung was responsible for distributing the digital watch faces, which were downloaded roughly 160,000 times across the UK and European Union.

While Swatch had initially sought a staggering £125 million ($170 million) in damages, Mr Justice Smith awarded a significantly lower figure, though it still far exceeded Samsung’s stance that only a nominal sum of £220 ($300) was owed.

The majority of the payout – approximately £7.35 million ($10 million) – was issued for “store display infringements.” The judge drew a comparison to physical retail, equating Samsung’s app store to a supermarket shelf displaying counterfeit goods.

He ruled that featuring prestigious brand names alongside low-priced or free downloads was highly damaging to the luxury watchmaker’s property interests and demeaned the exclusivity of its brands.

Samsung was held accountable because it maintained control over the app review process and actively marketed its smartwatches using appealing display faces. The technology giant defended its actions by stating it removed the software immediately upon being notified of the issue and argued that Swatch’s claims were exaggerated.

In a statement following the decision, Samsung expressed that it is carefully reviewing the judgement and considering all potential countermeasures, including an appeal.

Meanwhile, Swatch criticised the tech company for attempting to downplay the scale of the infringement. Related legal proceedings initiated by Swatch in the United States have remained paused pending the outcome of the English litigation.

Legal experts note that the decision could carry broad implications for major tech companies and platform operators, highlighting their potential liability for copyrighted and trademarked content hosted within their application ecosystems.

Via Tech Digest