Protecting intellectual property

Many Swiss SMEs hold their own in a tough marketplace primarily thanks to their creativity and ability to innovate. They have built up this knowledge over many years – whether through research and development or creative problem solving. Of course, once you’ve gained some competitive advantage, you want to reap the rewards of your efforts, which is why protecting your intellectual property is essential.

If you don’t, there’s a risk your ideas and innovations could be copied or your company could fall victim to product or brand piracy. Already more than 20 years ago, the OECD estimated the scale of product and brand piracy at several hundred billion Swiss francs. Given the growth of digitalization and AI, that value is almost certainly much higher now.

Intellectual property covers a wide range of creative and technical inventions. In Switzerland, you can obtain protection through national procedures at the Swiss Federal Institute of Intellectual Property (IPI) or through international systems. Clear contracts are also important – especially when transferring rights or setting up licensing deals. Solid contracts provide legal certainty, prevent disputes and secure your ability to profit from your ideas.

Your first step is to gain a basic understanding of the relevant property rights. The example of a wristwatch clearly illustrates which property right applies in which circumstances.

A watch’s movement – it’s mechanism – may be eligible for patent protection as a technical invention. The watch’s outward appearance – it's overall look and style – falls under design protection. If you own a Swiss watch, the “Swiss made” label – indicating its geographic origin – is also protected and may be used only if at least 60 percent of production costs are incurred in Switzerland. The watch’s brand and product names may be trademarked, while the watch catalog or marketing materials are covered by copyright.

Swiss protection law isn’t always easy to navigate. It pays to consult external experts early – such as trademark or patent attorneys, or specialized lawyers.

What matters most is that you develop a clear protection strategy. Felix Addor puts it this way: “The rule of thumb is – protect only as much as necessary. But what you do protect, protect as well as possible. And – crucially – only seek protection in countries where you’re willing to enforce your rights in court if necessary”.

It’s also important to address protection as early as possible, since intellectual property can usually only be protected if it’s new. Once something is published, protection is often no longer possible.

Besides timing, an in-depth market analysis is the foundation of any successful protection strategy: Which markets (research, production and target markets) are relevant to your business or product? Who are your competitors? What’s your financial risk – and what costs can you bear? Enforcing intellectual property can be expensive.

Other ways to protect your IP

In addition to seeking external expertise and taking action as early as possible, there are other effective ways you can protect intellectual property: