Facts
Pavag AG is a joint-stock company established in 1926 with its registered office in Nebikon, whose business purpose is the utilization of kraft paper, in particular the manufacture and distribution of kraft paper bags, as well as participation in related enterprises. In October 1964, Georges Theiler founded Bavag Bau- und Verwaltungs-AG with its registered office in Zurich, whose purpose is the construction and management of real estate as well as related business activities.
In July 1965, Pavag AG filed a lawsuit against Bavag Bau- und Verwaltungs-AG with the Commercial Court of the Canton of Zurich, requesting that the defendant be prohibited from using the word "BAVAG" in any context in connection with its business activities and be obliged to remove the component "BAVAG" from its company name. The Commercial Court dismissed the claim.
Considerations
The Federal Supreme Court states that the company name of a joint-stock company must clearly differ from any already registered company name, otherwise the owner of the older company can sue for the discontinuation of the use of the newer name. The case law places strict requirements on the distinctiveness of the company names of joint-stock companies.
In the present case, it is clear that the words "Pavag" and "Bavag" in the company names of the parties do not differ significantly. Neither the special font nor the plumb line used by the defendant make any difference, as these elements are not part of…