Legal dispute over use of name in Switzerland: Otto's and Otto fail to reach agreement
Settlement negotiations between the Swiss retailer Otto's and the German Otto Group have failed and the case is entering the next round.
The SonntagsZeitung publicized the legal dispute between the two parties in April (Werbewoche.ch reported). The case concerns the entry of the German Otto Group into the Swiss online market. If the billion-euro German mail order giant appears in Switzerland under the name "Otto" - for example with the domain Otto-shop.ch, which is already planned for 2017 - the Swiss discounter Otto's fears a risk of confusion.
Although the Otto Group had its name protected in Switzerland 15 years earlier than Otto's, it has never used it since. From the point of view of the Swiss courts, this is a crucial point: what counts is the priority of use. Registration alone does not guarantee protection as long as the trademark is not used.
In Germany, the opinion is different. Here, they rely on an international treaty from the imperial era. Accordingly, use of the trademark in Germany should be sufficient to assert its protection in Switzerland as well.
How the SonntagsZeitung the dispute is now entering the next round. Last week, the lawyers for both parties are said to have met for an instruction hearing. The court is trying to persuade the two sides to reach a settlement. Without success. Because only the Otto Group is interested in a settlement. A spokesperson confirms that they are still "willing to settle" - but Otto's has "categorically rejected" settlement offers. Nevertheless, the company is optimistic that it will be granted the right to use the name "Otto" in Switzerland.
However, the Swiss discounter with boss Mark Ineichen is not commenting on the case. The next chapter of the legal dispute will take place at the Cantonal Court of Lucerne - at an as yet unknown date. (hae)
