Does your company name or logo feature the word “Swiss” or the Swiss cross? Do you believe that having a registered office in Switzerland is enough to justify this designation? A recent judgment from the Commercial Court of Bern has just called a company, BDSwiss AG, to order, sending a strong signal to all businesses claiming “Swissness”.
“Swissness” refers to Swiss legislation designed to protect the “Swiss” brand and the Swiss cross. Its goal is simple: to prevent companies from using the image of quality and reliability associated with Switzerland without meeting the required criteria. In short, it ensures that what is presented as “Swiss” genuinely is, in order to preserve the reputation of its products and services.
The “Swissness” legislation aims to strengthen the protection of the “Swiss” designation and the Swiss cross by establishing clear guidelines for the use of Swiss indications of origin in advertising. The objective is to prevent the misuse of the Swiss brand, which could lead to a loss of image and value for Switzerland.
BDSwiss AG had its registered office in Zug, Switzerland. However, the Commercial Court of Bern prohibited it from using the word “Swiss” and the Swiss cross. Why? Because the company was actually managed from Cyprus and primarily targeted foreign clients.
The Court was unequivocal: having a mere address in Switzerland—a “mailbox”—is not sufficient. To be able to call itself “Swiss”, your company must not only have its registered office in Switzerland but also be effectively administered from there. This means that key decisions, daily management, and core operations must genuinely take place in Switzerland.
Article 49, para. 1 of the Trademark Protection Act (TmPA) is at the heart of this legislation. It provides that companies can only advertise their services as “Swiss” if two cumulative conditions are met:
The BDSwiss AG case perfectly illustrates the strict application of this provision. Although the company had its registered office, i.e. a formal presence in Switzerland, the Court found that its effective management was conducted from abroad and its services were not primarily aimed at the Swiss market.
This landmark judgment has significant implications for all companies, especially those operating internationally:
Protection of the “Swiss” Brand: Switzerland takes the protection of its image very seriously. The Swiss Federal Institute of Intellectual Property (IPI) is the body responsible for enforcing these rules. It can intervene, as it did with BDSwiss AG, and even initiate legal proceedings. The IPI’s role is central, acting on suspected abuses, particularly when the interests of the Swiss Confederation are clearly affected.
Clarification of the rules: The judgment confirms a strict interpretation of the law. There is no room for ambiguity: “Swissness” requires a real presence and effective management in Switzerland.
Consequences for Non-Compliance: If your company does not meet these criteria, you risk having to change your name, logo, and all your marketing materials. This can lead to significant costs and damage your reputation. In the BDSwiss AG case, the company was given three months to make the necessary changes.
If you use Swiss indications of origin, you must ask yourself the following questions:
Is my registered office in Switzerland? Is my company genuinely managed and administered from Switzerland? Are strategic and operational decisions made on Swiss territory?
If the answer to these questions is not a clear “yes”, you should review your situation. “Swissness” is not just a matter of image; it is a matter of substance.
It should be noted, however, that the exact impact on international companies with complex structures and global operations remains to be assessed on a case-by-case basis. The judgment sends a signal, but each situation will need to be examined individually.
The application of this legislation to digital services or companies without a significant physical presence could also pose interpretation challenges in the future.
In summary, the judgment against BDSwiss AG is a milestone that reaffirms Switzerland’s commitment to protecting the authenticity of its brand. It requires companies wishing to benefit from the “Swiss” image to demonstrate genuine economic and administrative substance on Swiss territory.