The Rolex v. Beckertime Lawsuit: Implications for the Secondhand Watch Industry

Powerfunk Thursday, June 6th, 2024 7 min. read

In late 2020, Rolex filed two significant lawsuits related to the sale of customized pre-owned Rolexes. One was filed in Switzerland against high-end watch customizer Artisans De Genève, which ultimately resulted in ADG photoshopping all Rolex logos off their website and switching to a send-your-watch-in-first model. But in this article we’ll focus on the lawsuit Rolex filed in the US against Beckertime, a well-known reseller of used (mostly vintage) Rolex watches. The matter was decided in 2024, and Beckertime doesn’t have to give Rolex one cent in damages–although the courts agreed Beckertime did technically make some infringements and they clarified a couple of restrictions that all used Rolex dealers need to heed moving forward. Here are the details of the Rolex Beckertime lawsuit.

Rolex Geneva HQ
Rolex’s Geneva headquarters. Photo by MHM55 (CC BY-SA 4.0)

From the court documents, we can see that Beckertime was ordered to inscribe “CUSTOMIZED BY BECKERTIME” on the back of any Rolex watch that has been customized. But there was a lot of legal back-and-forth about the definition of “customized” before it got to that point. Rolex wanted any watch with any aftermarket part–like a crystal or springbar or gasket–to be considered a non-genuine Rolex altogether. Basically, Rolex started from an unreasonably aggressive position and fought from there, probably expecting Beckertime to feel intimidated and settle early on. That’s what other companies have done, but this is a Texas company and their CEO Matthew Becker has, legally speaking, big brass ones.

We’re fighting for your right to customize and resell your watches.

Matthew Becker, CEO of Beckertime

I won’t take you through every legal detail, but Becker held his ground and argued that his watches should be considered “customized” rather than “counterfeit.” The courts appreciated Beckertime’s consistent disclosures about modifications but worried that once a watch enters the “stream of commerce,” it can change hands and uncertainty about trademarks is re-introduced.

That’s where the caseback engraving comes in. “We came up with the idea of ‘CUSTOMIZED BY BECKERTIME,’” Becker told us. While he doesn’t actually love the idea of engraving every watch he customizes, it was a way to push past the “stream of commerce” argument and the courts liked the idea. Smart. And then the courts, essentially, had to consider what parts triggered the customization disclosure.

We were able to narrow the scope of this case down from ‘all aftermarket parts’ to really just ‘dial and bezel.’

Matthew Becker, CEO of Beckertime

Ultimately, the courts decided that a watch with a non-Rolex bezel cannot be sold as a Rolex, while ones with customized dials can–as long as full disclosure is made by the seller and the caseback is engraved. Simple disclosure is sufficient for aftermarket bracelets and other aftermarket parts. But, notably, sellers cannot put genuine Rolex clasps on a non-Rolex band, even if it doesn’t resemble a Rolex bracelet.

Rolex ref. 69068
The bezel on this Rolex ref. 69068 is all factory. Notice the identical expertly-set diamonds.

“You can’t take a RubberB strap and put a Rolex clasp on there,” Becker clarified. Resellers should now also avoid “reapplication” of the Rolex brand in any circumstance, although that used to be common when refinishing dials. We’ll break down all the legal decisions as simply as we can now from a watch industry perspective:

Rolex v. Beckertime Lawsuit Summary: Ramifications for Used Rolex Dealers

Aftermarket BezelsProhibited
Refinished Dials with Re-Applied Rolex brandingProhibited
Rolex Dials with Diamonds AddedOK if disclosed and “CUSTOMIZED” written on caseback
Aftermarket crystal, gaskets, and other lesser partsOK
Aftermarket bracelets/straps with aftermarket clasps/bucklesOK if disclosed
Aftermarket bracelets/straps with genuine Rolex clasps/bucklesProhibited
Rolex watch customization/reselling legality

Bezels “are integral and necessary to the at-issue watches.” Consistent with these findings, the district court prohibited BeckerTime from displaying the “GENUINE ROLEX” trademark “in any disclosures in connection with goods or services of watches that include: non-genuine (i.e. not made by Rolex) bezels.”

Dana M. Douglas, Circuit Judge

Across the board, Rolex wanted all the modifications mentioned above to result in a legal classification of “counterfeit,” but the court disagreed and found clear disclosures to be sufficient in many cases. The court ultimately agreed with Rolex that Beckertime did infringe on their trademarks by selling certain customized watches and calling them “genuine Rolex” watches, but they did not award Rolex any damages.

Why Doesn’t Beckertime Owe Rolex Money?

Well, it was proven that Rolex had been aware of Beckertime for many years. If it was really so urgent for Rolex to stop Beckertime’s behavior, the legal logic goes, why let it go on for so long before filing suit? This logic is known as a Laches defense, and it requires the defendant to have clean hands from a legal perspective.

“It was found that we did have clean hands–no malicious intent,” Becker noted. Beckertime’s history of open disclosure about their modifications was a factor. Winning a laches defense is actually a big deal–it almost always fails! But in this case, the courts were likely dubious about the motives behind Rolex’s sudden interest in a decades-old reselling operation. Is this really about Beckertime, or is this about Rolex trying to establish favorable case law for themselves?

The John Minor Wisdom U.S. Courthouse, Fifth Circuit in New Orleans, LA. Photo by Bobak Ha’Eri (CC BY 3.0)

Although Becker isn’t happy that he can no longer customize bezels or dials without the “CUSTOMIZED BY BECKERTIME” inscription, he can be proud that he fought for and won the right to continue to operate his business successfully. And there are a lot of watch resellers that should be thankful–this case could’ve conceivably gone very differently. “This is case law now,” Becker added, although he does expect Rolex to file another appeal.

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Is Beckertime a Legit Seller?

Beckertime has been selling used Rolexes for over a quarter-century, and in all my years moderating the Rolex subreddit I can’t recall encountering any dissatisfied Beckertime customers. They’ve sold lots of relatively low-end used Rolexes with aftermarket parts, true, but they’re generally priced appropriately and the listings disclose the customizations.

Why is Rolex Being So Aggressive?

It does seem like Rolex is being increasingly aggressive about their trademarks. Keep in mind that Rolex filed a similar lawsuit against a colorful watch customizer called LaCalifornienne in 2019, but they only sought an injunction–not monetary damages–and it didn’t make it all the way to litigation. Rolex’s lawsuit against Beckertime sought money, although none was awarded. Rolex’s intellectual property is, undeniably, incredibly valuable, and it makes sense that they’d protect it aggressively.

But a cynical watch enthusiast might note that Rolex started a Certified Pre-Owned program in 2022, and wonder if Rolex is trying to funnel more repair work to their own service centers. After all, if Rolex won’t give anyone any parts (watchmakers with Rolex parts accounts are growing fewer and fewer), and adding any third-party parts makes them “counterfeit” (which the courts didn’t agree on), what else can you do?

The Rolex Beckertime lawsuit has implications for aftermarket/modified bracelets
A Rolex President bracelet with a custom (aftermarket) barked finish

Rolex v. Beckertime: In Conclusion

So, although Beckertime could be considered a competitor to Luxury Bazaar, we tend to be on their side on this one. What if one of our clients wants to trade in a Rolex with an aftermarket bezel–can we legally even accept it if we wanted to? Or what if someone trades in an old Rolex on a generic leather strap with a real Rolex buckle–we have to put a non-Rolex buckle on there and put the real one in a baggy on the side? It seems like if Rolex had their way it would all just be considered “counterfeit” and as much as we hate counterfeits, it just feels like Rolex is reaching.

More on Rolex:
How to Spot a Fake Rolex: The Ultimate Guide
What is Rolesor? And Why Doesn’t Rolex Just Say “Two-Tone?”
Rolex Milgauss Collector’s Guide
The Bucherer Acquisition Will Give Rolex a Storied Maker of High Complications
A Complete Guide to Purple Rolex Dials