Swiss IP Institute Wins 'Swissness' Lawsuit Against BDSwiss AG

Switzerland's Federal Institute of Intellectual Property (IGE) has won a landmark legal case against Zug-registered online broker BDSwiss AG, in what is believed to be the first court ruling to enforce the country's 'Swissness' legislation. The Commercial Court of Bern issued its decision on August 26, 2025, finding that BDSwiss had unlawfully used the word 'Swiss' in its company name and the Swiss cross in its logo.

Although BDSwiss AG is formally registered in Zug, the court found that its presence in Switzerland was limited to a c/o address at a trustee office. Actual management of the company was carried out from Cyprus, and its services were primarily marketed to customers in Germany. The IGE said it had received repeated complaints about BDSwiss's use of Swiss origin indicators and had asked the company several times to stop, but BDSwiss did not comply. The IGE filed suit in December 2022, seeking an injunction and removal of the Swissness elements from the company's branding.

The court upheld the IGE's request in full and ordered BDSwiss to remove all Swissness elements from its business presentation within three months. The ruling is significant because it is the first fully litigated enforcement of the Swissness rules since they came into force in 2017. Previous cases involving misuse of Swiss origin indications were typically settled out of court or handled through administrative measures.

The court's assessment emphasized that a formal registered office is not enough to establish a genuine connection to Switzerland. The decisive factor is the actual, verifiable business presence and management from Switzerland. It also noted that combining an offshore management structure with Swissness marketing is deliberately misleading and contrary to fair competition.

Under Article 49 of the Swiss Trademark Protection Act, services may only be advertised with a Swiss connection if the company's registered office is in Switzerland and its actual management is also carried out from Switzerland. A letterbox company does not meet those requirements. The Swiss cross is additionally protected under the Coat of Arms Protection Act. Violations of these standards can constitute unfair business practices under Article 3 letter b of the Federal Act Against Unfair Competition.

The ruling is expected to have broader implications for internationally active companies based in Switzerland, particularly in fintech, online brokerage, and digital services. It also signals that the use of Swiss origin markings will be more closely scrutinized in IP due diligence, M&A transactions, and brand compliance. Companies with Swiss connections will need to ensure they can objectively document their operational presence, decision-making authority, and value creation in Switzerland.