UK court orders Samsung to pay Swatch $16.1 million for watch face app infringement

Samsung Electronics must pay approximately 16.1 billion won ($11.6 million) to Swiss watchmaker Swatch Group, a London High Court ruled. The payment stems from Samsung's distribution of smartwatch watch face apps on its Galaxy App Store that mimicked Swatch's brands. Swatch Group had initially sought $235.9 billion (170 million dollars) in damages.

The disputed apps, developed by third parties, were available on the Galaxy App Store from October 2015 to February 2019. These apps featured designs that imitated the names and appearances of Swatch Group brands, including Breguet, Blancpain, Omega, Longines, and Tissot.

In 2022, the UK High Court found Samsung liable for trademark infringement, a decision upheld by the UK Court of Appeal in 2023. The appellate court determined that Samsung's role went beyond passive hosting, indicating active involvement in the distribution process.

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Samsung's supermarket (app store) display of Swatch Group brands for free or low cost download is very significant damage.

The latest ruling specifically addresses the amount of compensation. The court awarded $10 million for the damage caused by the exposure of Swatch Group's brand names on the Galaxy App Store, regardless of actual downloads. Judge Marcus Smith stated that the availability of Swatch brands on Samsung's "supermarket" app store at low or no cost caused significant harm, devaluing the premium image Swatch had cultivated over years.

Samsung had argued that the apps were third-party creations, generated only about $300 in revenue for the company, and that Swatch's claimed damages were excessive. Following the ruling, Samsung stated it is carefully reviewing the decision and considering all available response options, including an appeal. Swatch Group criticized Samsung's attempts to downplay the infringement and its impact on their well-known brands.

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Samsung has repeatedly tried to downplay the scale and significance of the infringement while seeking compensation for Swatch Group's well-known brands.