The Example of Swiss Watch

Non-Agricultural GIs:
a Global Perspective
Geneva
5 December 2013
Introduction
1. General Overview of the FH and the Swiss watch
industry
2. Geographical indications in Switzerland
3. Use of Swiss geographical indications on watches and
watch movements
1. General Overview of FH
Swiss watch industry head
organization
Non-profit, Trade
association
Over 500 members
Over 200 brands
Headquarters of the FH
in Bienne, Switzerland
Protection and development
of the Swiss watch industry
Fight against counterfeiting
and defence of the “Swiss
Made”-label
The Swiss watch industry
400 years of history
More than 550 companies
56’000 employees
Third largest export sector (21 billion CHF en 2012)
More than 200 export markets
A multitude of products, styles and prices
The Swiss watch industry
Identification of the product « watch » with the country
Switzerland
Reputation forged during several centuries
• Punctual as a Swiss watch
• Réglé comme une montre suisse
• Pünktlich wie eine Schweizer Uhr
The Swiss watch industry
Swiss watch and clock industry appeared in Geneva in the
middle of the 16th century
By the end of the century, Genevan watches were already
reputed for their high quality
Geneva watchmakers created in 1601 the Watchmakers'
Guild of Geneva, the first to be established anywhere
One century later many watchmakers decided to leave
the city for the receptive region of the Jura Mountains
The Swiss watch industry
In 1790, Geneva was already exporting more than 60,000
watches
In 1770, Abraham-Louis Perrelet created the "perpetual"
watch
In 1842, pendant winding watches were invented by
Adrien Philippe
At the same time began the production of complicated
watches (perpetual calendar, the fly-back hand and
chronographs)
2. Geographical indications in Switzerland
« Sui generis »-protection by the Law on the protection of
Trademarks and Indications of Source
Art. 47 : By geographical indication, shall be understood any
reference, direct or indirect, to the geographical origin of the
products or services, included the references to the characteristics
or quality related to a particular place
According to these provisions (art. 47-50), GI’s are
protected as qualified indications of source in Switzerland
Precise criteria developed by jurisdiction
Use of Swiss geographical indications
on watches and watch movements
Specific GI regulation for watches: Swiss federal
Ordinance governing the use of the name "Swiss" or
"Swiss Made" for watches
According to Article 3 of the above-mentioned Ordinance,
"the name "Switzerland", indications such as "Swiss",
"Swiss product", "manufactured in Switzerland", "Swiss
quality", "Swiss Made" or other appellations which
contain the name "Swiss" or "Switzerland" or which may
be confused therewith may be used solely for Swiss
watches or Swiss watch movements”
Swiss Federal Ordinance governing the use
of the appellation Switzerland or Swiss for
watches
Art. 1a Definition of the Swiss watch
A watch is considered to be Swiss if :
1. its movement is Swiss;
2. its movement is cased up in Switzerland and
3. the manufacturer carries out the final inspection in
Switzerland
+
+
Swiss Federal Ordinance governing the use
of the appellation Switzerland or Swiss for
watches
Art. 2 Definition of the Swiss watch movement
A movement is considered to be Swiss if :
1. it has been assembled in Switzerland;
2. it has been inspected by the manufacturer in
Switzerland
3. the components of Swiss manufacture make up for at
least 50 percent of the value, without considering the cost
for assembly
3. Misuse of Swiss geographical indications
on watches: few examples
Indications such as
• Swiss Movt
• Swiss Quartz
• Swiss Parts
• Swiss Design
• Swiss Calibre
• Swiss Eb
• Swiss Style
• Swiss Brand
• ...
often imply that the watch does not satisfy the criteria
« SWISS MASTER »
« SWISS MASTER »
« SWISS MASTER »
Misuse of Swiss geographical indications on
watches: few examples
Watch completely made in Asia (including movement)
Misuse of Swiss geographical indications on
watches: few examples
Misuse of Swiss geographical indications on
watches: few examples
Watch assembled in Asia / Movement « Swiss made »
Movement not encased in Switzerland
Misuse of Swiss geographical indications on
watches: few examples
Activities of the FH in the field of GI’s
Monitoring applications for trademark registrations filed
worldwide in Class 14
Filing opposition to trademarks containing misleading IG
Intervention to prevent unlawful and misleading
designation of Swiss products
“SWISS” and “SWISS MADE” certification trademarks in
the USA and in Hong Kong
Activities of the FH in the field of GI’s
In the United-States, the FH is the holder of the GI’s
"Swiss" and "Swiss Made" which are registered as U.S.
Certification Marks, respectively Reg. No. 3,047,277 and
Reg. No. 3,038,819. (U.S. Trademark Act of 1946, as
Amended)
In Hong Kong, the Certification Mark "Swiss" No.C00140
has also been registered in accordance with the Trade
Marks Ordinance (§559). (Hong Kong (China), Chapter
559, Trade Marks Ordinance)
Conclusions
Consumers want to buy genuine Swiss watches
The global protection level of non-agricultural GI’s is
insufficient
The global disparity in the protection of GI’s leads to
different standards and finally to insecurity for consumers
Thank you for your attention !
Federation of the Swiss Watch Industry FH
Rue d'Argent 6
2502 Bienne
Tél. +41 (0)32 328 08 28
Fax +41 (0)32 328 08 80
www.fhs.ch
[email protected]