Tiffany&Co Wins Judgement On Cooperation Dispute

Recently, the Holland court dismissed the Arbitration Commission's decision on cooperation disputes between Tiffany & Co. Tiffany and the world's largest watch maker Swatch Group AG Swatch group. At that time, the Holland Arbitration Association decided that Tiffany & Co. had to pay 402 million Swiss francs (US $419 million) for compensation to Swatch group.

In a US regulatory report, Tiffany & Co. said that the Amsterdam jury, composed of three judges, ruled the ruling. But the Swatch group said it would appeal.

The two companies reached an agreement in 2007 to jointly develop Tiffany & Co. brand watches, including R & D, production and global distribution, with a view to Tiffany & Co. high-end watches occupy a higher share in the luxury market. Tiffany & Co. is responsible for design, and Swatch group is responsible for manufacturing and sales. The agreement lasted for 20 years, and the agreement was called a "historic" agreement between the two companies, but it was not implemented. It was terminated by Swatch group in 2011, because the company thought that the progress of Tiffany Co. & amp; Co. was too slow in the new product launch, which dragged down the sales performance of the group.

At that time, Swatch group, the biggest Swiss watch maker, blamed. Tiffany & Co. "Systematically preventing and postponing the development of business" and violating the contents of the contract. Tiffany & amp; Co. countered in March 2012 that Swatch group "did not provide suitable distribution channels for Tiffany & Co. brand watches". After that, the counterclaim of Tiffany & Co. was rejected. The Holland Arbitration Association decided that Tiffany & Co. had to pay 402 million Swiss francs (about US $419 million) to the Swatch group.

"The court's ruling cannot be enforced because we will appeal." Swatch Nick Hayek, the group's chief executive, said on the phone, "we have won the original case and we are very confident that we can win the next one. Sentence Victory. " The ruling decided that the appeal would mean that the Swatch group would not return any funds to the Tiffany group until the Holland court issued the final ruling. Tiffany group said that the appeal process may take at least 18 months.

"Although we are grateful that the decisions of the district court can be appealed, the judgement has not yet come to an end, and we support the court's assessment of the potential defects of the Arbitration Commission in its adjudication." Michael Kowalski, chief executive of Tiffany group, said in a statement. The arbitration award is usually final, and the Holland law will provide limited reasons, and the arbitral award may be cancelled, Tiffany group said in a regulatory statement.