Facts
Philips AG, whose Swiss subsidiary holds the "Philips" trademarks and the Philips logo in Switzerland, sued Radio-Import G.m.b.H. which had imported and sold in Switzerland television sets bearing these marks, but manufactured by Philips' German subsidiary. The Federal Tribunal dismissed Philips AG's claim, considering that the use of the marks by the German subsidiary did not constitute a trademark infringement in Switzerland, insofar as the Swiss public associates these marks with the Philips group as a whole and not specifically with the Swiss subsidiary.Considerations
The Federal Tribunal recalls that trademark law is territorial and that the registration of a trademark in Switzerland only confers protection within Swiss territory. Thus, even if a foreign company belongs to the same group as a Swiss company holding a trademark, it cannot use this trademark in Switzerland without the agreement of the Swiss trademark holder.
However, the protection granted by the Trademark Act only aims at acts likely to mislead the public as to the origin of the goods. In this case, the Tribunal considers that the Swiss public associates the Philips marks not only with the Swiss subsidiary, but with the entire Philips group. Therefore, the…