Customizing a smartwatch is half the fun of owning one. With a quick tap on the screen, a modern piece of tech transforms into a classic timepiece. However, that seamless transition has sparked a massive legal war between Silicon Valley-style platform businesses and traditional Swiss luxury. Swatch Group, the world’s largest watch manufacturer, is demanding a staggering $170 million in damages from Samsung over digital watch face replicas available on the Galaxy Store.
The roots of this tedious seven-year battle go back to 2019. Swatch noticed that independent third-party developers were uploading digital clones that directly imitated the iconic dial designs, logos and layouts of its most protected brands. The “cloned” list includes Omega, Tissot, and Longines.
According to data presented during the trial, users downloaded these watch face replicas around 160,000 times across the UK and the European Union. A London High Court already found Samsung liable for trademark infringement back in 2022. The final arguments regarding the actual payout wrapped up on June 26.
Killing the soul of Swiss luxury
For Swatch, this fight is not just about a massive cash payout; it is about survival. Traditional watchmakers tightly control their supply to create artificial scarcity, which supports premium pricing and protects the brand’s “image prestige.”
In a written statement cited by Reuters, Tissot CEO Sylvain Dolla explained that the group has a strict policy against licensing its designs to smart device manufacturers. Dolla argued that allowing precision-engineered analog designs to be cloned onto mass-produced, commodity smartwatches essentially kills the exclusivity and soul of a fine Swiss watch. Swatch claims that the $170 million price tag represents the “hypothetical license fees” Samsung should have paid to use those 10 iconic brand assets legally.
A $300 profit vs an outsized demand
Samsung is pushing back fiercely. The tech giant calls the multi-million-dollar demand completely extravagant and detached from financial reality. Samsung notes it did not create the infringing apps and pulled them from the Galaxy Store immediately after the controversy erupted.
Furthermore, the actual revenue numbers present a comical contrast. Samsung’s legal team revealed that most of the targeted watch faces were downloaded completely for free. The total revenue generated by the apps during the investigation was a mere $1,000. Meanwhile, Samsung took home a tiny platform commission of just $300. Samsung argues that paying $170 million over a $300 profit defies common sense.
An ominous precedent for Big Tech
The outcome of this London trial is bound to send shockwaves across the entire tech sector. The lawsuit started before the UK officially exited the European Union. So, the impending ruling will apply across all 27 EU member states. It will also serve as a direct template for a parallel lawsuit Swatch has waiting in the wings against Samsung in the United States.
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