Facts
The Otto Naegeli Foundation filed a lawsuit against the Theodor Naegeli Foundation to prohibit it from using the name "Theodor Naegeli Foundation" and the designation of the prize it awards as the "Theodor Naegeli Prize". The plaintiff claimed that as the older foundation, it had a right to protection of its name under Art. 29 para. 2 of the Swiss Civil Code, as the name of the defendant gave rise to confusion with its own name.
The Civil Court and the Court of Appeal of the Canton of Basel-Stadt dismissed the lawsuit. The Federal Supreme Court confirmed these decisions.
Considerations
The Federal Supreme Court stated that foundations are generally only subject to the law of names under Art. 29 of the Swiss Civil Code, but not to the special provisions of company law. The interest of the defendant in using the name of its founder both as a designation for the foundation itself and to identify its research prizes was considered more important than the interest of the plaintiff in preserving the distinctiveness of its name.
The foundation bodies are bound by the will of the founder expressed in the foundation deed, so that the defendant's interest in using its name coincides with the founder's interest in the continued use of his name. The transfer of the name from the founder to the…