In 2007 luxury jewelery brand Tiffany & Co. joined forces with Mega luxury watch power house Swatch Group to launch the development, production and global distribution of Tiffany brand watches.
This union was supposed to be one of the most important and powerful ventures in watch and jewelry history for the next 20 years.
Trouble between the two brands started brewing in 2010 because of creative and contractual differences. The Swatch Group sued Tiffany & Co. in 2011 for various contract breeches which Tiffany & Co. counter sued and finally on December 21, 2013, a Dutch Panel in the Netherlands ordered Tiffany and Co. to pay Swatch Group $445.9 million dollars. In addition to the penalty, the company has to pay interest, legal fees, and two-thirds of the cost of arbitration.
The penalty exceeds the U.S. luxury-goods maker’s net earnings last year. To read the full story, written and summarized in Forbes by fellow leading watch blogger, Ariel Adams of a Blog to Watch, please click here.