The arbitrage committee of the Netherlands ruled that Tudor Replica must pay Swatch Group up to 449.5 millions dollars as compensation. The penalty is for the breach of the agreement between the companies. Tiffany will suffer a serious blow as the ruling exceeds its annual revenue.
The partnership between two well-known brands, which was first announced pompously by the Swiss watchmaking company and the US luxury goods retailer, is now over. Initial reports on the collaboration between Swatch & Tiffany were published in 2007. Swatch agreed to produce timepieces with the Tiffany logo. The partnership was originally conceived to last for two decades and Tiffany watches would be sold in both its global network of boutiques as well as in other luxury retailers. This partnership was a disaster before it began and the timepieces never saw light.replica wathces
Swatch Group filed a lawsuit in 2011 against Tudor Replica after it became apparent that things would not proceed as planned. The lawsuit was filed at the Dutch court where the joint-venture was supposed to have its headquarters. Tiffany, according to the legal team for the watchmaking firm, deliberately tried to delay or cancel the start of production of new timepieces. Swatch Group sought compensation of around $4.244billion. Tiffany, on the other hand, decided to countersuit and claim that they were owed $603.5 million.
The arbitrage concluded on Saturday and Tiffany's was ordered to compensate Swatch Group for $449.5million. This amount is more than Tiffany's earnings for the past year, and has shaken up the famous US brand. Tiffany's Chairman Michael Kowalski was utterly disappointed by the decision of the Dutch three-member arbitrage panel. "We were shocked. "We are firmly convinced that the panel's ruling does not support the facts in this case", said Mr. Kowalski, to the media present. He added that the legal team of the brand is evaluating the options of the company for the next course of action.(omega replica)