AMSTERDAM — Swatch Group won an arbitration award of about $449 million from Tiffany & Co., after the timepiece maker claimed a breach of contract in their joint venture.
The award is more than Tiffany earned last year in net income.
Swatch and Tiffany became embroiled in a legal battle in 2011 after the biggest maker of Swiss timepieces alleged the US jeweler had blocked development of their partnership.
Tiffany said it met its obligations under terms of the alliance the two companies had begun almost four years earlier, when they agreed to develop and sell watches under the Tiffany brand and share the profits.
Tiffany is reviewing its options with its legal counsel, the US company said in a statement Sunday.
A spokeswoman for Swatch said she could not comment on whether Tiffany can still appeal the decision.
The payment is due immediately, and interest dating back to June 2012 will be added to it, Swatch said.
Tiffany will take a charge of $295 million to $305 million in the fourth quarter for the decision, made by an arbitration panel in the Netherlands.
''We were shocked and extremely disappointed by the decision of the arbitral panel,'' said Michael Kowalski, Tiffany's chief executive, adding that the company has sufficient financial resources to pay the damages and that it won't affect the company's ability to execute its business plans. Tiffany earned $416 million in net income in its last fiscal year, according to data compiled by Bloomberg.