• Home
  • News
  • Business
  • Dutch court rules in Tiffany's favor against Swatch

Dutch court rules in Tiffany's favor against Swatch

By Kristopher Fraser

loading...

Scroll down to read more

Business

It’s the year of lawsuits in the fashion industry apparently. First Converse’s lawsuit against almost everyone under the sun is still going, and now the ruling in the ongoing battle between Swatch and Tiffany has come out. On Wednesday a three judge panel in Amsterdam ruled in favor of Tiffany and Co. in a case involving a 419 million dollar arbitration. Swatch group says that it has every intention of appealing the ruling. The court battle between Swatch and Tiffany has been going on for quite some time.

Tiffany wins court battle against Swatch for now

The court battle began in 2011 after Tiffany alleged that Swatch blocked development of a partnership to make and sell watches under the Tiffany brand where they would then share the profits. The joint venture was expected to last 20 years, and give Tiffany and Co. an even bigger piece of the luxury watch market. Swatch took the their arbitration to court in the Netherlands citing breach of contract, and accusing Tiffany and Co. of moving too slowly to launch and promote the product. Private judges ruled that Tiffany owed Swatch 419 million dollars plus interest in December 2013. Swatch has absolutely no intention of just forfeiting to Tiffany and Co., however.

“The decision by this court is not enforceable yet since we will appeal,” Swatch Chief Executive Officer Nick Hayek to Business of Fashion. “We won the original case and are very confident to win the next decision.” Because Swatch has decided to appeal that means they won’t have to return any funds to Tiffany until the court ruling is settled, a long and grueling process that could take up to 18 months. In a press release Swatch described the current decision as “purely formal.” Until a final decision is made by the Netherland’s supreme court both companies will remain at a standstill with each other.

photo:destinationcentreville.com
Swatch
Tiffany & Co.