"Swiss Army": Brand guardians whistle back army

The army is currently conducting several lawsuits and proceedings at home and abroad against companies that are conducting unlawful business with the "Swiss Army" and "Swiss Military" brands. In Switzerland, however, the DDPS has now suffered a major defeat in its fight against trademark pirates, according to the Handelszeitung. The Swiss Federal Institute of Intellectual Property (IPI) has ruled that the army may not register the "Swiss Military" trademark for watches in the trademark register. The company Montres Charmex, which has held the rights to the "Swiss Military" trademark for over 20 years, had filed an objection to the registration of the trademark. The army is now taking the case to the Federal Administrative Court. A decision is expected by the end of 2016.

The DDPS is thus facing an embarrassment that could have unpleasant consequences: If the judges confirm the IPI's decision, the DDPS's trademark will be canceled. The Confederation's strategy of demanding license fees from watch companies for the use of military trademarks is thus threatened with a fiasco. "If the Confederation's trademark is canceled, the licenses granted to it are likely to become invalid," explains trademark law expert Gregor Wild. It also cannot be ruled out that the Confederation will then be confronted with claims for reimbursement. So far, the army has been able to negotiate license agreements with three companies. In addition to Victorinox, the watch companies Hanowa and Chrono pay license fees for the use of the "Swiss Army" and "Swiss Military" brands respectively. In total, the Confederation collected license fees of CHF 1.2 million in 2015.