SINGAPORE - Luxury watch dealer Cortina Holdings has received a writ of summons from Sincere Brand Management requesting that the Hong Kong High Court restrain the former’s Hong Kong subsidiaries from selling Franck Muller watches.

In a bourse filing on Wednesday, Cortina said that the group was given the exclusive right to distribute, promote and sell watches, accessories and spare parts bearing the “Franck Muller” and “Franck Muller Geneve” trademarks in Hong Kong, Macau, Taiwan and mainland China by GFM Watchland.

The company understands that GFM has been granted the sole mandate for the worldwide distribution rights for Franck Muller watches and has the right to mandate sub-distributors like itself.

However, Sincere, alleges that it had signed an exclusive distributorship agreement with Multicontinental Distribution Asia (MDA).

MDA then wrote to Sincere “purporting to terminate” the agreement, although Sincere alleges that the grounds of termination MDA relied on were invalid.

Cortina said that Sincere claims to have commenced arbitration proceedings in Switzerland against Shanghai Franck Muller Fine Watch Company, MDA, GFM and Franck Muller Watchland.

In its writ, Sincere is asking the Hong Kong High Court for an interim injunction to restrain Cortina’s Hong Kong subsidiaries and employee Phua Cheng Kee from selling Franck Muller products, including accessories and spare parts.

Cortina said that Sincere has applied to the court by an originating summons to restrain the former from distributing the products and taking any action to disturb Sincere’s alleged position as exclusive distributor pending the results of the Swiss arbitration.

In addition, Sincere is also claiming damages, equitable compensation and account as to profits for allegations such as procuring breach of contract, interference with business, conspiracy and passing off in respect of its rights as the alleged exclusive distributor.

The interlocutory application for the interim injunction was to be heard on June 23, but has since been adjourned till July 13.

Cortina said that it intends to “vigorously” defend the writ, originating summons and the interlocutory application, and that it will make further announcements when there are material developments on the matter.

Cortina shares closed flat at $3.80 on Wednesday, before the announcement was made. THE BUSINESS TIMES