Facts

Bachtel-Versand AG has been registered in the Commercial Register of the Canton of Zurich with its registered office in Wetzikon since July 15, 1976. By amendment of the articles of association dated November 2, 1981, the company's registered office was transferred to Oberuzwil SG. However, the Federal Office of the Commercial Register refused to approve the registration of the company name "Bachtel-Versand AG" at the new registered office, as it considered the place name "Bachtel" to be misleading, since Oberuzwil has no connection to the Bachtel region.

Bachtel-Versand AG subsequently filed an administrative court appeal against the decision of the Federal Office. The Federal Office of the Commercial Register requested the dismissal of the appeal, while the cantonal Commercial Register Office requested the appeal to be upheld.

Considerations

The Federal Supreme Court held that the use of a place name in a company name can only give rise to deception if this is to be assessed based on the particular circumstances of the individual case. In the present case, however, the company name "Bachtel-Versand AG" does not indicate any connection between the place name and the company's business activities,…