Facts
The corporation MZSG Management Zentrum St. Gallen was founded in 1984 and offers management consulting and seminars. SMP Management Programm St. Gallen AG was founded in 1991 and also conducts management training and programs. In 1994, MZSG filed a lawsuit against SMP, claiming the companies were too similar and could be confused.
The Commercial Court essentially granted the claim and prohibited SMP from using the company name "SMP Management Programm St. Gallen". SMP appealed, and the Federal Supreme Court overturned the judgment and dismissed the claim.
Considerations
According to case law, the company name of a corporation must clearly distinguish itself from any already registered company in Switzerland, otherwise the owner of the older company can sue for risk of confusion.
For companies containing common subject designations, the requirements for distinguishability are less strict. Such companies merely need to create sufficient distance from the older company through individualizing additions.
In the present case, the defendant's company name "SMP Management Programm St. Gallen" does…