Swissness

Swissness-Update: Revised Ordinance on the Use of “Swissness”-Claims for Watches approved


Your contact

As part of the “Swissness” legislation (see our summary of the Swissness-Rules in BR-News of 16 February 2016) the Swiss Government has approved on 17 June 2016 the revised Ordinance on the Use of “Swissness”-Claims for Watches. The revised Ordinance will enter into force on 1 January 2017.

The Swissness-Legislation

The revised Ordinance on the Use of “Swissness”-Claims for Watches is part of a broader legislation work. Studies revealed that the brand “Switzerland” or the claim “made in Switzerland” is quite valuable in a globalized economy. Consumers are prepared to pay a higher amount for “Swiss made” products than for comparable products. With regard to watches it is estimated that the “Swiss-Bonus” may achieve 20%, for specific watches up to 50% of the entire sales price (see Erläuternder Bericht zur Revision der Verordnung über die Benützung des Schweizer Namens für Uhren, p. 3).

The purpose of the Swissness-legislation is to ensure that “Swissness”-claims may solely be used in connection with products that are mainly manufactured in Switzerland. The legislation shall prevent free-riding on the “Swissness”-reputation by companies that do not or only to a small extent manufacture their products in Switzerland (see Institut für Geistiges Eigentum (IGE): Mitteilung vom 17. Juni 2016, Revision der Verordnung über die Benutzung des Schweizer Namens für Uhren).

Stricter Requirements for Watches

In order to strengthen the “Swissness” of watches and to adapt the general Swissness requirements for the watch industry, the Swiss Government has approved the revised Ordinance on the Use of “Swissness”-Claims for Watches on 17 June 2016 (see news.admin.ch: Stärkung von “Swissness” bei Uhren, 17. Juni 2016).

The revised Ordinance sets out stricter rules for watches than the current ordinance (see Erläuternder Bericht zur Revision der Verordnung über die Benützung des Schweizer Namens für Uhren). The most important requirements are the following:

  • The watch in its entirety is relevant for the cost calculation. Under the current Ordinance, only the clockwork was relevant.
  • It is explicitly mentioned that smart watches are to be qualified as watches in the sense of the Ordinance.
  • At least 60% of the manufacturing costs of the entire watch must occur in Switzerland.
  • At least 50% of the value of the clockwork must stem from components that are fabricated / manufactured in Switzerland.
  • At least 60% of the manufacturing costs of the clockwork must occur in Switzerland.
  • The technical development of the watch and clockwork must be executed in Switzerland. In addition, the composition and final control of the watch must also take place in Switzerland.

Transitional Provisions

Transitional provisions were rather contested (between watch manufacturer and supplier). In the end both sides agreed to a compromise (see news.admin.ch: Stärkung von “Swissness” bei Uhren, 17 June 2016).

The following transitional rule applies:

  • Until 31 Dezember 2018 watch cases and watch glasses must not be included in the calculation of the manufacturing costs, if the respective cases and glasses were already on stock at the moment at which the revised Ordinance entered into force, i.e. 1 January 2017.

This transitional rule ensures that manufacturers may reduce inventory that complies with the current Ordinance.

Enforcement of the Swissness Requirements

The use of “made in Switzerland” claims will not be subject to an approval or permission (see already BR-News of 16 February 2016). The geographic origin “Switzerland” and any related claims may be used, as long as the Swissness requirements are complied with.

Compliance with the Swissness requirements will not be enforced by governmental bodies. It is rather expected that industry organizations will have an interest in proper compliance and therefore assist in enforcing the Swissness provisions.

Additional Information (only in German):

Contact: Michael Reinle


Share post



most read


Highlights

MLL Legal

MLL Legal is one of the leading law firms in Switzerland with offices in Zurich, Geneva, Zug, Lausanne, London and Madrid. We advise our clients in all areas of business law and stand out in particular for our first-class industry expertise in technical-innovative specialist areas, but also in regulated industries.

MLL Legal

Newsletter

Much is still unclear in relation to liability questions around AI tools.

Read our latest post about “Liability during the Lifecycle of an AI Tool” and download our white paper.

Show article.

Our Story

MLL Legal is a leading Swiss law firm with a history that dates back to 1885. The firm has grown both organically and by means of strategic mergers, the latest of which took place on 1st July 2021 between Meyerlustenberger Lachenal and FRORIEP.

The merger establishes MLL Legal, a combined new entity as one of the largest commercial law firms in Switzerland with 150 lawyers in four offices in Switzerland and two offices abroad, in London and Madrid serving clients seeking Swiss law advice.

Our firm has a strong international profile and brings together recognised leadership and expertise in all areas of law affecting commerce today, with a focus on high-tech, innovative and regulated sectors. 

About us

Publications

Click here for our latest publications

COVID-19

Read all our legal updates on the impact of COVID-19 for businesses.

COVID-19 Information

Job openings

Looking for a new challenge?

Our talented and ambitious teams are motivated by a common vision to succeed. We value open and straightforward communication accross all levels of the organisation in a supportive working environment.

Job openings

Firm News

Click here for our latest firm news.

Our Team

The regulatory and technological landscape continually require businesses to adapt and evolve.
Our 150+ lawyers are continuously innovating and striving for improvement in everything they do. We embrace new ideas and technologies, combining our wealth of expertise with creative thinking and diligence. With our hands-on approach, we implement viable solutions for the most complex legal challenges.

Our Team.

LexCast – the podcast series by MLL NexGen

Smart legal education on the go. The LexCast hosted by MLL NexGen provides legal insights in a short format that allows listeners to educate themselves on and about legal issues wherever they are and whenever they find the time.

Listen to our podcast series – stay tuned.

MLL Legal on Social Media

Follow us on LinkedIn.