Yeah, obviously, but why not just backpedal by pushing an update that uses a different watch design? Surely the damages from showing their users a copyrighted watch design for a month or so would be less than 21 million.
Of course, all of this is completely insane. And it's not like Apple's legal folks would take an existential threat lying down. Even so, it still reflects the lunatic reality of copyright law, which is something that any sane legal team will go out of its way to avoid. That being the case, $21 million represents an extraordinarily good settlement.
That would posit that "mere design" is not something defensible, which would invalidate a lot of lawsuits by apple itself.
More so, the money they would pay to the Swiss Federal Railway will come out of a heaped up mound of money that Apple would have trouble bringing back to the US anyway (due to tax implications). Overall this is a fairly sane move on Apple's part. Get it out of the way, and move on.