Swiss made
The word «movement» must be written in full and must be of the same typeface, size and colour as the designation «Swiss».
The first law, which applies to all types of Swiss products, is the "Federal Act on the Protection of Trade Marks and Indications of Source".
The text of either law is available not only on French, German or Italian, the principal official languages of Switzerland, but also on English.
These standards have changed over time and were not always codified in the national law, so older watches which bear the mark Swiss made may not necessarily meet the current legal definition.
On the other hand, they might well exceed the current legal definition of Swiss made, which remains a minimum threshold.
A watch that says "Swiss Quartz" is supposed to be manufactured in Switzerland according to the legal criteria above-stated.
[6] Use of the Swiss made label for watches is covered by an ordinance of the Federal Council dated 29 December 1971.
The Swiss Made Ordinance has, for a number of years, been subject to many criticisms, particularly inside the industry, because it is considered too lax, but also in legal circles, where the view is that it no longer fully meets the legal mandate specified in the companion law on trademarks.
Conversely, the Swiss manufacturers of parts destined for foreign watches from then on were authorized to visibly indicate that their products come from Switzerland.
Many are afraid to share their identity [8] but Ronnie Bernheim, co-CEO of Mondaine, has been outspoken on this issue, and defends "Swissness more as a promise than a physical manifestation".
[9] Mondaine admits that it uses non-Swiss dials and cases though Bernheim has declined to disclose their country of origin.
In 2007, the FH plans to seek political action on a proposal which introduces a new aspect to the definition of Swiss made, in the form of a value criterion.
The draft also stipulates other provisions concerning the definition of Swiss constituent parts and assembly in Switzerland.
With these proposals, objectives in terms of protecting the Swiss made label should be attained.
The proposed criteria also take into account the place of manufacture and the origin of components, thereby complying with the law on trademarks which serves as the legal basis of the "Swiss made" Ordinance.
Almost all Swiss watchmakers, with the notable exception of old Breitling timepieces, label their watches prominently on the dial.
Besides this regulation, only a sparse number of court opinion on the topic can be found; in particular, the decision of the Commercial Court of St. Gallen according to which the value of the Swiss portion of the manufacturing costs including raw materials, sub-assemblies, accessory parts, salaries, and general manufacturing costs but excluding operating expenses, must be at least 50% and the "essential manufacturing process" which must have taken place in Switzerland.
[12] Exactly how "essential manufacturing process" should be understood has been illustrated by the following two examples: For a woven scarf to be considered a product of Swiss origin because of a particular coating it has received in Switzerland which stiffened the fabric (although this clearly is an important characteristic of the quality) is insufficient.
With the exception of watches, no concrete criteria exist regarding when and by whom a 'made in Switzerland' designation can be affixed to a product and when it cannot.
The origin of the essential components and the manufacturing process through which a product obtains its characteristic features, and – in borderline or doubtful cases – the origin of the intellectual property embodied in the product and the special circumstances in the respective industry must also be taken into due consideration.
Practically, the Federal Council Ordinance of December 23, 1971 to regulate the use of the SWISS appellation for watches was partially revised on June 17, 2016 at the request of the industry, in order to strengthen the protection of the geographical indication.
