NFT Company Sues Fashion Conglomerate LVMH for Patent Infringement
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A company specializing in smartwatch face designs sold through non-fungible tokens (NFTs) has filed a lawsuit against luxury goods giant LVMH, alleging patent infringement.
Watch Skins Corporation, the plaintiff, submitted its complaint to a federal court in Texas on March 10, accusing LVMH of unlawfully using its patented NFT display technology.
The company claims to hold multiple patents for a system that enables smartwatches to display verified NFT artworks.
Watch Skins Accuses TAG Heuer of Misusing NFT Tech
According to Watch Skins, LVMH’s watch brand, TAG Heuer, along with other products under the conglomerate’s umbrella, allegedly misused its proprietary technology.
The company pointed to three specific patents: one for verifying NFT ownership before display, another for authenticating NFTs through a blockchain wallet, and a third for retrieving and displaying custom watch faces based on NFT ownership.
The lawsuit further alleges that TAG Heuer actively encouraged customers to infringe on these patents by providing instructions on how to utilize its NFT display feature.
The complaint states that the smartwatch “connects to a user’s crypto wallet to guarantee authenticity” before allowing NFTs to be displayed.
LVMH, a multinational holding company, owns an extensive portfolio of luxury brands, including Louis Vuitton, Givenchy, Tiffany, Christian Dior, and Hennessy.
TAG Heuer’s involvement in NFT integration has previously been highlighted as part of LVMH’s broader push into digital assets.
Watch Skins is seeking a jury trial, financial compensation for lost profits and royalties, and a court injunction to stop LVMH from further using its patented technology.
The company first introduced its blockchain-powered NFT watch face marketplace at the Consumer Electronics Show in Las Vegas in 2020.
Through a mobile app, it allows users to buy officially licensed smartwatch faces from various brands.
NFT Trading Volumes Plunge Over 60% in February
As reported, NFT trading volumes plummeted by more than 60% in February, continuing a downward trend that began in early 2024.
According to DappRadar analyst Sara Gherghelas, NFT trading volumes reached $1.36 billion in December but dropped 26% in January before plunging another 50% in February.
“While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,” she noted in a March 6 industry report.
Notably, the NFT market closed 2024 on a positive note with annual sales surpassing $8.83 billion, a 1.1% increase from 2023’s $8.7 billion, according to CryptoSlam data.
Ethereum and Bitcoin led the market, each generating $3.1 billion in sales, followed by Solana with $1.4 billion.
In total NFT sales, Ethereum remains dominant with $44.9 billion in all-time sales, trailed by Solana at $6.1 billion and Bitcoin at $4.9 billion.
Despite the slight recovery, 2024’s sales volumes were significantly lower than the market’s peak years.
NFT sales hit $15.7 billion in 2021 and soared to $23.7 billion in 2022, making 2024’s total a 43.9% and 62.8% decline from those peak periods.
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