Swiss watchmaker Swatch is suing the Malaysian government for confiscating rainbow-coloured watches that celebrate LGBTQ rights.
Authorities seized 172 watches from 16 shops in May, in an act Swatch said has damaged its reputation.
The watches were confiscated because they had the letters LGBTQ on them, the home minister said.
Homosexuality is a crime in Malaysia, with people punished by jail time or caning. Rights groups have warned of growing intolerance against the gay community.
“Without a doubt, the seized watches did not and are not in any way capable of causing any disruption to public order or morality or any violations of the law,” Swatch said in the lawsuit.
The seizure notices served to Swatch described the watches as having elements of or promoting LGBTQ rights and potentially breaching Malaysian law, the company said.
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Most of the seized watches, which have a combined retail value of 64,795 ringgit (£10,874)), did not feature LGBTQ lettering, Swatch said.
Swatch is seeking damages and the return of the watches, saying its ability to do business in the country has been “greatly jeopardised” by the seizures.
Swatch Group said on Monday it does not comment about ongoing legal cases.
Malaysia’s home ministry did not immediately respond to a request for comment.
The Kuala Lumpur high court is set to hear the case on 20 July.
The seizure and lawsuit come ahead of crucial regional polls that will pit Prime Minister Anwar Ibrahim’s progressive coalition against a mostly conservative ethnic-Malay, Muslim alliance.
In the run-up to the elections, Mr Ibrahim has again been accused by critics of not doing enough to protect the rights of Muslims in multi-racial, multi-faith Malaysia.
Mr Ibrahim was imprisoned for sodomy and corruption for nearly a decade, charges he denied and said were politically motivated.
The leader has repeatedly said this month that his government will uphold principles of Islam, state media reported. He has also said LGBTQ rights will not be recognised by his administration.
