US tech firm Zugara accuses Chanel of patent infringement over AR makeup

Legal disputes over augmented reality (AR) technology are escalating across fashion and beauty. The latest case involves Chanel, which California-based AR company Zugara is suing for allegedly infringing on its patented face-tracking process.

U.S. tech firm sues Chanel for copying patented AR system – Chanel Try On

Zugara filed the lawsuit on July 22 in Texas, claiming the French luxury house’s virtual makeup try-on tool unlawfully replicates a patented system the firm developed for real-time cosmetic simulation. The tech company is known for providing AR tools to major clients such as Nestlé, Pepsi, Toyota, AT&T, and the U.S. Air Force.

At the center of the case is a patented method that tracks users’ eyes and lips to digitally apply makeup in real time. While there are several ways to achieve this effect, Zugara alleges that Chanel’s “Virtually Try-On” tool copies the specific sequence outlined in its patent. Zugara previously filed a similar complaint against Estée Lauder, which was reportedly settled out of court.

Chanel’s virtual try-on experience allows users to test makeup looks inspired by its Croisière 2025 runway show. The tool features curated palettes, limited-edition products, and options to customize makeup virtually before purchasing.

Unlike virtual reality, which immerses users in a fully digital environment, augmented reality enhances real-world images by overlaying digital elements. In the beauty sector, AR try-on tools have become popular for offering personalized, contact-free shopping experiences.

But the rise of AR tools has sparked more than just innovation. Legal challenges involving beauty brands and tech firms are becoming more common—particularly around the collection of biometric data. In the U.S., companies such as Charlotte Tilbury Beauty, e.l.f. Beauty, Mary Kay, and Ulta have previously been sued for allegedly capturing facial data without user consent.

As companies like Apple and Meta push forward with AR-enabled devices, experts warn that biometric tracking, facial scanning, and consumer privacy will continue to raise legal and regulatory questions across the retail and tech industries.

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