The Swiss Federal Institute of Intellectual Property (IPI) has decided to adjust its established practices regarding the use of the Swiss cross symbol. For years, according to Swiss "Swiss made" regulations, the prominent white cross on a red background was reserved exclusively for products manufactured within Switzerland's borders.
The amended regulations now indicate that companies conducting product research and development within Switzerland will, under certain conditions, be permitted to affix the "Swiss cross" symbol to their products in the future. The IPI clarified that the criteria for what qualifies as "Swiss made" have not been altered. However, the institute has specified that the Swiss flag pattern is allowed in phrases such as "Swiss engineering" or "Swiss design," provided the flag is placed between the words and its size does not exceed the font size of the text.
The IPI stated that the Swiss cross, as one of the most influential symbols of "Swiss made," possesses strong visual impact. Previously, to gain approval for using the red-and-white cross symbol, companies had to ensure that at least 60% of the production costs occurred in Switzerland and that a key manufacturing step was completed locally. This rule aimed to guarantee the product's origin attributes and serve as a mark of Swiss quality.
In a statement, the IPI explained that the Swiss economy has been under significant pressure for some time due to the persistent strength of the Swiss franc and high US tariffs. This has made it increasingly difficult for Swiss companies to compete in global markets. In this context, applying the law with a tilt towards business interests is particularly important. For certain Swiss industries, localizing production, especially for the US market, has become increasingly vital, meaning these products may no longer meet the current "Swissness" standards. Nevertheless, these companies have a legitimate interest in referencing the "Swiss made" attribute and its associated quality standards for the manufacturing steps still completed in Switzerland. In the long term, this approach helps consolidate Switzerland's position as an innovation hub.
Under these specific circumstances, companies are now permitted to use the Swiss cross symbol, for example, alongside phrases like "Swiss Research" or "Swiss Engineering," provided the symbol is not misinterpreted as indicating the entire product is "Swiss made."
Debates over the "Swiss made" standard in manufacturing have persisted for years. Ironically, the Trump administration's threat to impose tariffs as high as 39% on Swiss imports, though later softened, accelerated discussions on this issue.
Following the update to these standards, will Swiss companies be more motivated to move manufacturing overseas? The Swiss sports brand On, founded in Zurich in 2010, welcomed the decision. The company stated in an email that this move "reflects a modern interpretation of 'Swissness' and acknowledges the reality of contemporary Swiss value creation: the strength of our economy lies not only in manufacturing but equally in innovation, R&D, and design."
Discussions about what "Swiss made" means often focus more intensely on the Swiss watchmaking industry. Currently, for a watch to be labeled "Swiss made," its movement must be manufactured locally, the watch must be assembled in Switzerland, and final quality control must occur within the country. Additionally, at least 60% of the manufacturing costs must originate in Switzerland.
Georges Kern, CEO of Breitling AG, known for its robust, metal-heavy watches, stated he does not foresee a "substantial shift" of core watchmaking business from Switzerland to other countries. He emphasized that for any serious luxury brand, design, engineering, assembly, and quality control will always remain in Switzerland. Regarding the evolution of the "Swissness" concept, Kern believes a delicate balance is needed: moderate flexibility helps adapt to the realities of globalization, but the industry must avoid diluting the value embodied by the label, which remains one of its strongest assets.
The IPI stressed that the "Swiss made" criteria remain unchanged: for Swiss industrial products, at least 60% of manufacturing costs must be incurred in Switzerland, and the key manufacturing process that gives the product its essential characteristics must be completed there. The adjustment primarily aims to benefit consumers by making it easier for them to identify products resulting from Swiss design or engineering, even if the physical manufacturing occurs outside Switzerland. Typically, the actual country of manufacture will also be labeled on the product.
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