Luxury giant TAG Heuer accused of misusing NFT display technology
Watch Skins Corporation, a company specializing in smartwatch face designs sold through non-fungible tokens (NFTs), has filed a lawsuit against luxury conglomerate LVMH, accusing it of patent infringement. The complaint, submitted to a federal court in Texas on March 10, alleges that LVMH’s watch brand, TAG Heuer, unlawfully used Watch Skins’ patented NFT display technology.
Allegations of Patent Violation
Watch Skins claims to hold multiple patents for a system that enables smartwatches to display verified NFT artworks. The lawsuit points to three key 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.
According to the complaint, TAG Heuer not only implemented this technology without permission but also encouraged customers to infringe on the patents by providing instructions on how to use the NFT display feature. The smartwatch, the lawsuit claims, connects to a user’s crypto wallet to verify authenticity before allowing NFT artworks to be displayed.
Seeking Compensation and an Injunction
Watch Skins is demanding a jury trial and financial compensation for lost profits and royalties. The company is also seeking a court injunction to prevent LVMH from further using the patented technology.
The dispute highlights LVMH’s growing involvement in digital assets. TAG Heuer’s integration of NFTs reflects the company’s broader strategy to engage with the digital economy and attract a tech-savvy customer base.
History of Watch Skins and NFT Technology
Watch Skins first introduced its blockchain-powered NFT watch face marketplace at the Consumer Electronics Show in Las Vegas in 2020. The company’s mobile app allows users to purchase officially licensed smartwatch faces from various brands, positioning itself as a pioneer in merging NFT technology with wearable devices.
NFT Market Faces Decline
The lawsuit comes at a challenging time for the NFT market. Trading volumes plummeted by over 60% in February 2025, continuing a downward trend that began earlier in the year. Data from DappRadar showed that NFT trading volumes fell from $1.36 billion in December 2024 to $680 million in February.
Despite the downturn, the NFT market ended 2024 on a positive note, with annual sales surpassing $8.83 billion — a modest 1.1% increase from 2023’s $8.7 billion. Ethereum and Bitcoin led the market, each generating $3.1 billion in sales, followed by Solana with $1.4 billion.
However, the 2024 totals remain far below the market’s peak in previous years. NFT sales hit $15.7 billion in 2021 and surged to $23.7 billion in 2022, making 2024’s figures a sharp decline of 43.9% and 62.8%, respectively, from those high points.
Implications for the Industry
The lawsuit could have significant repercussions for the NFT and smartwatch industries. If Watch Skins prevails, it could set a precedent for how NFT technology is integrated into consumer products. LVMH, which owns luxury brands such as Louis Vuitton, Givenchy, Tiffany, Christian Dior, and Hennessy, has yet to comment on the lawsuit.
