Facts

The dispute opposes Carl Zeiss Heidenheim, a German company, and VEB Carl Zeiss Jena, an East German company. Carl Zeiss Heidenheim alleges that VEB Carl Zeiss Jena commits an act of unfair competition by using the name 'Carl Zeiss' in Switzerland. VEB Carl Zeiss Jena disputes this allegation, arguing that the name 'Carl Zeiss' is protected in the German Democratic Republic (GDR) and that it has the right to use it.

The facts date back to 1945, when American troops occupied Jena, where the Carl Zeiss company was located. The management and employees of the company were relocated to West Germany, where they created a new company under the name of Carl Zeiss. Meanwhile, the East German authorities created a new company in Jena, which took the name of VEB Carl Zeiss Jena.

Carl Zeiss Heidenheim brought a lawsuit against VEB Carl Zeiss Jena, demanding that the latter cease using the name 'Carl Zeiss' in Switzerland. The Zurich Commercial Court granted this request, but VEB Carl Zeiss Jena appealed to the Federal Court.

Considerations

I. Introduction

The Federal Court must determine whether VEB Carl Zeiss Jena commits an act of unfair competition by using the name 'Carl Zeiss' in Switzerland. To do so, it must examine the rules of private international law and the provisions of Swiss law on unfair competition.

II. Applicable Law

The Federal Court must determine which law is applicable to determine whether VEB Carl Zeiss Jena has committed an act of unfair competition. It examines the rules of private international law and concludes that Swiss law is applicable, as both parties are foreign companies operating in Switzerland.

III. Unfair Competition

The Federal Court examines whether VEB Carl Zeiss Jena has committed an act of unfair…