Switzerland
means luxury watches, chocolate and cows, fondue and raclette, Heidi
and green mountains. Above all, it means high quality standards:
studies by ETH Zurich and the University of St. Gallen
show that the “Swissness” premium can account for up to 20% of a
product’s price. In special sectors like watches and luxury goods the
premium may reach up to 50%.
Legally speaking, Switzerland means
restrictions (big ones) on the use of the Swiss appellation and
corresponding label. The reason behind this is a simple one: the greater
the trust consumers have in the guaranteed quality of a
product/service, the greater the risk of wrongful use by free riders.
This logic was confirmed, inter alia, by a
ruling
made public by the Berne Commercial Court on 8 January this year, in a
case brought by the Swiss Federal Institute of Intellectual Property
(IPI) against BDSwiss, a financial services provider managed from
Cyprus, with registered office in Zug.
But let’s take a step back and see where everything started.
Swissness legislation: indications of origin
The
Swissness legislation was adopted by Swiss Parliament in 2013 and came into effect on the 1 January 2017. It defines the criteria
for indicating Swiss origin
for commercial products and services marketed in Switzerland, and it
covers claims such as “Swiss Made”, “Swiss quality” etc. as well as
other indications and illustrations referring to Switzerland, including
the Swiss flag.
Notably, food products shall comply with the
following criteria: (i) the essential processing step must occur in
Switzerland; and (ii) at least 80% of the weight of raw materials must
come from Switzerland. However, some ingredients may be exempted if it
can be demonstrated that Swiss sourcing was not possible. Different
criteria apply for natural and industrial products.
When it
comes to services, companies can advertise them as Swiss if they (i)
have a registered office in Switzerland and (ii) are actually managed
from Switzerland. Accordingly, a letterbox alone is not a sufficient
connection to the country.
The ruling of the Berne Commercial Court
In
the case at hand, a number of complaints were raised against the
BDSwiss company, which led to the IPI contacting BDSwiss several times
and eventually bringing an action before the Court.
According to
the Berne Commercial Court, the fact that BDSwiss has an office in Zug
is not sufficient to comply with the ‘Swissness’ criteria because the
company was managed from Cyprus. On these grounds, the Court decided
that the company must remove ‘Swiss’ from its name and the Swiss cross
from its logo and that it has three months to change its branding.
Geographical Indications (GIs), Appellations of Origin (AOs) and geographical marks And there is more to come.
In
addition to simple indications of origin, there are qualified
designations, such as «Tête de Moine» or « Gruyère», which are
registered in the Swiss “Register of designations of origin and
geographical indications”.
The
Federal Act on the Protection of Trade Marks and Indications of Source (TPA) marks a distinction between
GIs and AOs, which identify products whose quality or characteristics are due exclusively or essentially to the geographical environment.
Additionally, GIs, AOs, certain indications of source and canton-recognised wine indications may be registered as
geographical marks
by a representative group. No proof of use is required and infringing
third-party use of the mark for identical or similar products may be
prohibited. However, such marks cannot be licensed, transferred or
relied upon in oppositions.
On 19 March 2021, the Swiss Parliament approved the Geneva Act of
the Lisbon Agreement on Appellations of Origin and Geographical Indications
and the amendment of the TPA, with the aim of enabling beneficiaries of
AOs and GIs to obtain a high level of protection on the territory of
the contracting parties for an unlimited period of time.
Yet, this may still not be sufficient. In Switzerland, Gruyère cheese falls under the protected label
Gruyère AOP. However, in 2023, the
US Court of Appeal for the fourth Circuit
upheld the USPTO’s refusal to grant the Swiss and French Gruyère
associations exclusive rights over “gruyère” in the US. Notably, the
Court held that this term is a generic one in the US market, and all
cheese producers, regardless of the country they come from, may use it.
Treatment of Swiss designations outside of Switzerland
And what is the situation in the European Union (EU) when it comes to Swiss claims?
In
principle, Swiss claims on products sold abroad are not governed by
Swissness law. They must comply with the regulations of the country
where they are used. When it comes to the EU, this generally means that
such indications must not be misleading (Article 7 (1)(g) of the
European Trade Mark Regulation (
EUTMR)).
With its ruling of 2 April 2025 in
case T-442/23,
the General Court (GC) upheld the Board of Appeal’s decision rejecting
an invalidity action against the figurative EUTM containing the word
“Swisse” (filed on 2 July 2003). The action was based on provisions
corresponding to what are now Article 7(1)(g) EUTMR (deceptive
trademarks) and on Article 59(1)(b) EUTMR (bad faith).
The GC
noted that (i) the mark could lawfully be used for goods manufactured in
Switzerland, (ii) the list of goods did not contain any indication of
their geographical origin, (iii) the applicant failed to show actual
deception or a sufficiently serious risk and (iv) bad faith cannot be
presumed on the basis that at the time of filing the applicant had no
economic activity corresponding to the goods and services applied for.
On this basis, it concluded that the mark was valid as neither it was
deceptive nor filed in bad faith.
Notably, the Court stressed that the refusal by Swiss authorities to register the mark was irrelevant due to the
autonomy of the EU trade mark system.
However, it did refer to the Swissness legislation, highlighting that
it was only adopted in 2013, well after the relevant filing date.
Against this background, it would be interesting to consider whether the
outcome might have been different had the legal framework been in place
at an earlier point in time.
A complex legal picture, yet worth a smile
In short, the overall picture when it comes to the protection of Swiss
origin claims is a complex one, characterised by the interaction of
different rights. Only a deep understanding of the applicable laws and
related practice can mitigate the risk when running a business and
referring to the notion of Switzerland…and talking about pictures: “say
cheese!”, but first make sure to verify where it comes from if you claim
it to be Swiss cheese.