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A dispute over trademark rights threatens to tarnish the relationship between the federal government and the Victorinox pocketknife maker. It concerns the perfume sector in the United States.
Victorinox uses the "Swiss Army" label for its products. (Image in archive: Maria Schmid)
The alliance against Victorinox. This trial would have been unthinkable lately, but the traditional Schwyz pocketknife maker has been providing the Swiss army for over a hundred years. But now, a dispute between the two has erupted. It is the term "Swiss military", that cutlery apparently appeared in the United States. But it's not about selling pocket knives: Victorinox wants to drive in the United States rather than its perfume business.
The registration of the term by Victorinox prevents the Confederation from operating in the US market. The contracting authority Armasuisse speaks of a breach of contract and drew the name of the Confederation, the knife manufacturer before the Commercial Court of Bern. Thursday, the first day of negotiations took place.
Motion of Thomas Minder as a trigger
Armasuisse claims in the lawsuit that the commercial court should compel Victorinox to withdraw the "Swiss Military" mark in the United States. The Confederation also demands that Victorinox be found guilty of damages exceeding one million francs. The Messerschmiede has in turn made a counterclaim against Armasuisse, as announced Thursday. Victorinox has demanded the rejection of the Armasuisse trial. After the lawyers of both parties submitted their applications, according to the SDA news agency, they agreed to start negotiations for settlement. These negotiations began later in the morning and continued Thursday night. If there had been no comparison, witnesses would be interviewed on Friday.
The lawyer from Armasuisse said Thursday morning in court that the federal government would not hurt Victorinox. This company is a "long-time and highly valued entrepreneur". The federal government has, however, been instructed by the Swiss Parliament to better protect the military-related brands.
The background is an attempt by Schaffhauser's Council of States, Thomas Minder. In 2012, he asked the Confederation to register brands such as "Swiss Army", "Swiss Military" or "Swiss Air Force" and to enforce trademark rights. The National Council and the Council of States returned the motion in 2013.
The federal government is also supported by a court decision: the Federal Administrative Court decided earlier this year that the Basel-based watch company Charmex could not sell watches bearing the name "Swiss Military". The Coat of Arms Act provides that certain official designations should not be used. In the affirmative, an official relationship is falsified, it was said. Victorinox "is lost," said the lawyer of Armasuisse. The company should not believe that it has exclusive rights to terms such as "Swiss Army" and "Swiss Army".
Victorinox's lawyer replied, according to SDA, that the brand "Swiss Army" had always belonged to this company. In a 2004 contract with the federal government, the latter had unreservedly acknowledged Victorinox's rights to the mark. For years, Armasuisse had nothing against the use of the term "Swiss Military" in the United States. Victorinox also volunteered to transfer royalties to Armasuisse for the new perfume company. Then in 2013, Motion Minder was transferred. This is why Armasuisse is now under political pressure. In addition, Armasuisse proposed in 2015 to another company a worldwide license for perfumery products. Which company it is, is not known.
Litigation also in the United States
Armasuisse did not comment on the ongoing trial on Thursday. Victorinox was also covered on request: "We can not comment before the conclusion of the negotiations," said a spokeswoman. It is still unclear whether the comparison took place in the evening until the deadline for writing. Friday, however, there will be more trading, announced the Commercial Court – and therefore no longer a witness hearing. The parties would inform Friday morning of everything else.
According to the lawyer of Armasuisse, there is also a legal dispute between the two parties in the United States. The question is whether Victorinox or the Confederation can use the Swiss Military brand. The proceedings are suspended, says the lawyer. The dispute is expected to take place first in Switzerland.
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