LVMH hit with lawsuit over NFT patent technology in watches

A blockchain company that specializes in creating NFT-based smartwatch skins has filed a lawsuit against TAG Heuer, accusing the luxury watch brand’s parent company, LVMH, of infringing on its patented technology. 

The lawsuit, filed on March 10 in a Texas federal court by Watch Skins Corporation, alleges that LVMH misappropriated its innovative NFT display system without permission, violating intellectual property rights.

According to the complaint, Watch Skins developed a unique system that allows smartwatches to display digital NFT artwork, but only after verifying ownership through a blockchain wallet. 

The company holds multiple patents related to this technology, which it claims LVMH unlawfully incorporated into TAG Heuer’s smartwatch offerings, as well as in other products across its brand portfolio.

Watch Skins highlighted three key patents in the case: the first covers the verification process to confirm NFT ownership, the second ensures NFTs are authenticated through a connected blockchain wallet before being displayed, and the third patent governs the retrieval and customization of watch faces based on NFT ownership. 

The company claims that TAG Heuer not only adopted the technology but also actively provided customers with step-by-step instructions on how to use the allegedly infringing features.

The lawsuit seeks a jury trial, financial compensation for lost profits and unpaid royalties, and a court order to prevent LVMH from continuing to use the patented technology. Watch Skins argues that LVMH’s alleged infringement undermines its competitive edge and exploits years of innovation in the blockchain and wearable tech space.

Watch Skins first gained attention in 2020 when it launched the world’s first NFT-powered watch face marketplace at the Consumer Electronics Show in Las Vegas. The platform, accessible via a mobile app, allowed users to browse and purchase licensed, authentic smartwatch faces from popular brands, bridging the gap between blockchain art and luxury wearables.

The lawsuit underscores the growing intersection of luxury fashion, blockchain technology, and intellectual property law, as brands increasingly explore NFTs as a way to offer unique, verifiable digital assets. How this legal battle unfolds could set a precedent for how blockchain patents are enforced and influence how luxury brands approach NFT integrations in the future.