Context: Augmented reality (AR) enhances real-world images by overlaying digital elements. The cosmetics industry is increasingly turning to AR for so-called try-on tools that offer personalized, contact-free shopping experiences. Among them is Chanel – its VIRTUAL TRY-ON tool allows users to test makeup looks inspired by its Croisière 2025 runway show and features curated palettes, limited-edition products, and options to customize makeup virtually.
What’s new: Zugara, a California-based AR company that provides tools to Nestlé, Pepsi, Toyota, AT&T, and the U.S. Air Force, has sued Chanel in the Western District of Texas, claiming that its digital makeup try-on tool infringes technologies related to tracking body parts and layering digital “try-on” products over live video in real time. Zugara is seeking damages and a permanent injunction.
Direct impact and wider ramifications: Chanel is the latest company to be targeted in a recent string of AR technology patent infringement disputes. Among those cases is Google’s declaratory-judgment complaint against EyesMatch in the Northern District of California, which it sued over U.S. Patent Nos. 8,982,109 and 8,982,110 (claims related to virtualizing a mirror in a video feed).
This is the complaint:
The patent-in-suit is:
- U.S. Patent No. 10,482,517 (“Providing a simulation of wearing items such as garments and/or accessories”)
Zugara’s complaint alleges that Chanel’s virtual try-on tool obtains a live video feed, detects the position or orientation of a user’s face, and superimposes virtual cosmetics that adjust dynamically as the user moves. This copies the specific sequence outlined in Zugara’s patent, it claims. The promotion of this tool on Chanel’s website is also evidence of induced infringement, Zugara adds, as the Chanel-created tutorials and interactive prompts encourage consumers to engage with the allegedly infringing AR interface.
This is not Zugara’s first complaint over the ‘517 patent. It also sued Estée Lauder in the Eastern District of Texas in February over the French cosmetic company’s virtual makeup try-on tool tech and AR advertisements (February 13, 2025 complaint). The companies settled their case very quickly, however, and the court dismissed it on July 9, 2025.
Counsel
Zugara is being represented by James F. McDonough and Jonathan L. Hardt at Rozier Hardt McDonough PLLC.
AR patent infringement disputes
Chanel and Estée Lauder are the first companies in the beauty sector to be sued over virtual try-on technologies, but their disputes generally join an increasing number of those over AR patents.
Google is not only seeking declaratory judgment against EyesMatch, but is also on the receiving end through Niantic (Pokémon GO, of which it holds a major share in), which was sued by ImagineAR in the District of Delaware over AR-related patents (November 14, 2024 ImagineAR press release).
Niantic was also sued by NantWorks in the Northern District of California over a patent related to the mapping of AR objects on mobile devices (U.S. Patent No. 10,664,518). In January 2023, the court granted summary judgment in favor of Niantic, finding NantWorks’ patent invalid as being too abstract, setting a precedent in the validity of broad AR patents.
Other major AR patent infringement cases include:
- Lennon Image Technologies’ campaign against large retailers, including Macy’s, Bloomingdale’s, and Ulta Beauty, over AR virtual try-on technology, which has resulted in the removal of such features from many retail websites.
- Mullen Industries LLC’s suit against Meta over patents that describe systems for providing 3D video game indicia to a player based on the current physical location of the player (8,585,476; 9,744,448; 10,179,277; 10,828,559; 10,967,270; 11,033,821; 11,376,493; and 12,019,791). Meta has since filed petitions for inter partes review of those eight patents. The United States Patent & Trademark Office’s Patent Trial and Appeal Board is due to issue a decision by the end of September.
- AR surgical navigation provider Novarad’s suit against Medivis, which the patentee won last year (March 20, 2024 Novarad press release).
- Virtual Immersion Technologies’ AR patent infringement litigation campaign which has involved over 43 defendants, including VRChat and General Dynamics.