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Samsung Ordered to Pay Swatch $11.6mn Over Copycat Smartwatch Apps

Financial Times Companies •
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The High Court in London ruled Samsung must pay Swatch Group $11.6 million for trademark infringement related to digital clones of luxury timepieces hosted on its smartwatch app store. The judge found the apps mimicked designs of Swatch Group brands including Breguet, Blancpain, Omega, Longines, and Tissot. The award, significantly lower than Swatch's initial $170 million demand, was based on harm to Swatch's interests from the display of brand names, irrespective of actual downloads.

Mr Justice Smith compared the situation to copycat products on supermarket shelves, awarding $10 million for "store display infringements". The court previously found Samsung liable for infringement between October 2015 and February 2019. While the apps were developed by third parties, Samsung was held liable due to its control over the app review process and marketing with attractive watch faces.

Swatch stated the apps, downloaded approximately 160,000 times in the UK and EU, constituted a "large-scale appropriation" of valuable trademarks. Samsung said it is considering all possible countermeasures, including an appeal, while Swatch noted parallel proceedings in the US have been stayed pending this outcome.