A new lawsuit filed in the U.S. District Court for the Eastern District of Texas accuses luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE and its subsidiaries of infringing patents owned by Watch Skins Corporation. The plaintiff contends that TAG Heuer’s Connected Calibre E4 smartwatch violates three of its U.S. patents related to NFT display and verification.

Core Allegations

Watch Skins, headquartered in Puerto Rico, alleges that TAG Heuer’s NFT-enabled smartwatch uses technology nearly identical to its own system, which authenticates NFT ownership via a blockchain wallet before displaying the relevant digital artwork on a watch face. The complaint cites TAG Heuer’s promotional materials, which describe the Connected Calibre E4 as a product that “allows you to display NFT artworks on your watch by connecting your crypto wallet to guarantee authenticity.”

According to Watch Skins, this functionality mirrors its patented platform designed to verify token ownership and enable users to buy, sell, and showcase NFTs on wearable devices. The company’s patents cover methods of retrieving and displaying NFT-based watch faces, preventing the display if the user does not hold the associated token.

Technology Background

Watch Skins says it began demonstrating its NFT display concepts in 2020, eventually launching a wearable NFT marketplace in 2021. By the time TAG Heuer introduced its NFT smartwatch features in 2022, Watch Skins claims to have already commercialized the patented technology. The complaint emphasizes that TAG Heuer’s approach of using a blockchain wallet to authenticate NFT ownership and block display for non-owners is what Watch Skins’ patents protect.

Legal Claims and Requested Remedies

The lawsuit alleges direct infringement, induced infringement, and willful infringement, arguing that LVMH and TAG Heuer continued to use and market the disputed technology “without license.” According to Watch Skins, “On information and belief, defendants continue without license to make, use, import/export into/from, market, offer for sale, and/or sell in the United States products that infringe the Patents-in-Suit.”

The company seeks a declaration of infringement, monetary damages, and a permanent injunction preventing further sales of the Connected Calibre E4 smartwatch or any other device deemed to infringe its patents.

Industry Significance

The lawsuit comes at a time when major luxury houses and consumer tech brands look to leverage blockchain features for new revenue streams. If Watch Skins’ succeeds in protecting its patents, it could force companies to negotiate licensing deals for NFT display technology—or risk litigation.

Meanwhile, TAG Heuer and other brands under LVMH’s umbrella have signaled a growing interest in Web3 applications, viewing NFTs as a way to enhance product exclusivity and customer engagement.

Known for handling high-stakes tech disputes, the Eastern District of Texas will examine whether Watch Skins’ patents are valid and whether TAG Heuer’s implementation indeed violates those claims. If the court rules in favor of Watch Skins, it may deter other wearable manufacturers from rolling out similar NFT features without thorough patent reviews.