Watch Skins Corporation has filed a lawsuit against the French luxury conglomerate LVMH, accusing it of illegally using patented technology for displaying NFTs on smartwatches.
The lawsuit, filed on March 10 in a federal court in Texas, alleges that TAG Heuer, an LVMH-owned brand, unauthorizedly utilized Watch Skins' innovations in its smartwatch models.
Watch Skins' NFT Display Technology
Watch Skins is a company specializing in integrating NFTs into wearable devices. It claims to have developed a system that allows NFT owners to showcase their digital assets on smartwatch screens. Watch Skins argues that TAG Heuer unlawfully copied this technology and implemented similar features in its smartwatch models without obtaining a license.
Three Patents at the Center of the Lawsuit
The lawsuit references three key patents that Watch Skins claims were infringed:
- Authentication-Based Display: Ensures that only verified NFT owners can display their assets on a smartwatch screen.
- Crypto Wallet Verification: Requires authentication via a connected crypto wallet before rendering NFT images on the screen.
- Smartwatch Display Configuration: Allows the customization of the watch’s display based on the user’s ownership of specific digital assets.
The plaintiffs argue that TAG Heuer not only used this technology without authorization but also encouraged customers to actively use NFT displays, further worsening the level of infringement.
Watch Skins’ Legal Demands
Watch Skins is seeking:
- A jury trial to determine the extent of damages.
- Compensation for financial losses, including lost profits and royalties.
- A court injunction prohibiting LVMH from further using its patented technology in TAG Heuer products.
Watch Skins has been actively developing NFT-focused wearable technology. The company showcased the first blockchain-based smartwatch display marketplace at CES 2020 in Las Vegas. Through its mobile app, users can purchase licensed watch face designs linked to their NFT assets.
A Legal Precedent for NFTs and Intellectual Property
Legal experts suggest that this lawsuit could set a precedent for intellectual property rights in the NFT and Web3 space, particularly in the luxury sector. As major brands continue to expand into Web3, the ownership and licensing of NFT-based technologies are becoming critical issues.
LVMH has not yet commented on the lawsuit. However, given its legal resources and strong interest in innovation, the case could lead to a landmark legal battle that shapes the future of NFTs in fashion and technology.
Read also:
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- NY Attorney General Sues Crypto Scammers Using NFT
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