Facts
On January 23, 1968, Elektrisola Feindraht AG was founded in Lucerne, which, among other things, offers the production and distribution of bare and insulated wires and cables, strands, and related articles. The Swiss Isola-Werke AG, which manufactures and trades in insulating lacquers, insulating materials, insulated wires and cables, as well as ceramic insulating bodies for electronics, already existed in Breitenbach. The Swiss Isola-Werke AG saw the founding of Elektrisola Feindraht AG as a violation of its rights and sued Elektrisola Feindraht AG in December 1968, demanding that it be prohibited from using the word "Elektrisola" and that its company name be changed to no longer contain the word "Elektrisola".
On June 18, 1970, the High Court of the Canton of Lucerne partially upheld the claim and prohibited the defendant from using the word "Isola", but not the use of related articles. Elektrisola Feindraht AG appealed this decision to the Federal Supreme Court.
Considerations
The Federal Supreme Court confirmed the judgment of the High Court. It concluded that the company name of Elektrisola Feindraht AG is confusingly similar to the company name of the Swiss Isola-Werke AG, as the word "Isola" is the most distinctive element in both companies. The addition "Feindraht" in the company name of Elektrisola Feindraht AG is not sufficient to create a sufficient distinction.
The Federal Supreme Court saw the use of the word "Isola" by Elektrisola Feindraht AG as an usurpation of name within the meaning of Art. 29 para. 2 ZGB, as the Swiss Isola-Werke AG has been using this word as a designation for its company…