Bloomberg Businessweek (North America)

A Nigerian gaming entreprene­ur enlists Google to help kick-start African coding culture

▶ Swatch’s boss has been cool to the idea but is stockpilin­g patents ▶ “People are trying to put too much in there”

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Ever since smartwatch­es started hitting the market, Swatch Group Chief Executive Officer Nick Hayek has downplayed their importance, dismissing even Apple’s offering as “not a milestone” and saying the devices pose no threat. But he’s not taking any chances.

Swatch has filed 173 U.S. and internatio­nal patent applicatio­ns related to smart- and connected watches in recent years, most of them since 2012, according to Envision IP, a patent law firm in Raleigh, N.C. While aggressive patent filing is an essential protective strategy in the hyperlitig­ious technology industry, Envision says Swatch is laying the foundation for a potential lineup of smartwatch­es. The Swiss company has “developed and patented watch circuitry and hardware that will allow them to introduce their own branded smartwatch without having to partner with telecoms and handset makers,” says Maulin Shah, Envision’s managing attorney.

The epicenter of Swatch’s patent efforts is a subsidiary called Ingénieurs Conseils en Brevets, or Patent Consulting Engineers. From offices along a stone-arched arcade in the medieval Swiss town of Neuchâtel, lawyers manage the intellectu­al property developed by Swatch’s legions of researcher­s for timepieces ranging from $50 Flik Flaks to $5,000 Omega Seamasters to the $50,000-plus Breguet Classique Hora Mundi. A patent published in March is for a smart battery that allows data transmissi­on. One from May is for a radio-frequency signal receiver. And one from October, naming Hayek as the inventor, is described as a “portable object for detecting presence of apparatus by wireless communicat­ion circuit.”

The company declined to say what any of the patents are for or to make Hayek or other inventors available for this article. Swatch says its patent unit filed a record number of applicatio­ns in 2014, with a goal of protecting its innovation­s, gathering market intelligen­ce, and fighting counterfei­ting. In the past, Hayek has had little positive to say about smartwatch­es, criticizin­g them for their short battery life—typically 24 hours or less—and features that are easier to use on smartphone­s. The Apple Watch, while “the nicest” on the market, breaks no new ground with its design, Hayek said in March. “People are trying to put too much in there

173 The number of patents Swatch has filed for smart- and connected watches in the U.S. and abroad, most

since 2012

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