Recently, Tiffany disclosed the lawsuit with Swatch Group. Although the Dutch arbitration committee has been trying to resolve the dispute between the two parties, both Tiffany and Swatch Group have stated that they will not continue Watch Agency Cooperation Agreement. Tiffany is seeking new partners for the brand’s watch business.
Tiffany & Co. said a huge lawsuit with Swatch Group SA (UHR.VX) and its subsidiary Tiffany Watch Co. is awaiting confidential arbitration, which will be finalized by a three-member arbitrator in the Netherlands Decide.
Although the arbitration commission from the Netherlands has been trying to resolve the dispute between the two parties, both Tiffany & Co; and The Swatch Group have stated that they will not continue the previous cooperation agreement. Swatch said that the cooperation agreement was terminated on October 1, 2013, and Tiffany said that the design, production, and distribution of branded watches would be handed over to other partners.
The lawsuit between Tiffany & Co. and Swatch Group SA (UHR.VX) stemmed from unhappy cooperation between the two parties.
In 2007, Tiffany & Co. and Swatch Group SA (UHR.VX) announced a cooperation. Swatch Group SA (UHR.VX) will represent Tiffany & Co. The watch business has an agreement period of 20 years, but the agreement was terminated early in September 2011. Swatch Group SA (UHR.VX) Swatch stated that the termination was due to Tiffany & Co. ‘systemically delaying and preventing the development of the watch business’, and subsequently filed a lawsuit against Tiffany & Co., It also claims a high compensation of 3.8 billion Swiss francs.
In March 2012, Tiffany & Co. Tiffany filed a counterclaim against Swatch Group SA (UHR.VX), stating that Swatch Group SA (UHR.VX) had not been a Tiffany & Co. ) Provide suitable points of sale, while condemning Swatch Group SA (UHR.VX) for disrespecting the brand and design of Tiffany & Co., and submitting to Swatch Group SA (UHR.VX) Filed a lawsuit for compensation of 541.9 million Swiss francs.
Analysts predict the final outcome of the case, Swatch Group SA (UHR.VX), will receive compensation. According to WWD, Tiffany & Co. is looking for new agency partners.