Warning letter

Guide

"Stop Using That Name!" – What to Do When a Warning Letter Lands on Your Desk

A practical guide for businesses, founders, and freelancers who have received a warning letter (Abmahnung) demanding they stop using their name, brand, or logo.

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Summary

  • Stay calm. A warning letter is a demand from another party, not a court order. You usually have time to think and respond.
  • Don't sign or pay anything straight away. Review first, note the deadline (ask for an extension if needed); take professional advice from a specialized lawyer if needed. The attached declaration might go beyond what is necessary.
  • Find out what the letter is actually based on – a registered trademark, a company name, or an unfair competition claim. The analysis might be different for each.
  • If it's a trademark: check whether the signs are really similar (look, sound, meaning), whether the goods and services overlap, whether their trademark is well-known in Switzerland (which widens its protection), and whether it is older than five years and actually in use (if not, you may have a strong defense).
  • If it's a company name: check whether the names are truly identical or similar, and where each business actually operates (geography and branches might matter).
  • Coexistence might be an option – a clear agreement can suit both sides better than a fight.
  • Recommended: get advice from a specialized IP/trademark lawyer before the response deadline runs out. A short consultation is often far cheaper than a wrong move.

First: take a breath

Receiving a letter with words like "infringement", "unlawful use", "damages" and "we reserve the right to take legal action" is unsettling. But a warning letter is one party telling you their view of the law. It is not a judgment, and you are not obliged to accept its conclusions.

Two things you should generally not do:

  • Don't sign the enclosed declaration without analysing it (often called an Unterlassungserklärung). These usually commit you to stop forever and to pay a contractual penalty for any future breach. The attached declaration might also go beyond what is necessary.
  • Don't ignore it either. Letters usually set a deadline. Missing it can lead to opposition proceedings before the Swiss Institute for Intellectual Property (IGE/IPI) or to court proceedings (including a request for an interim injunction), resulting in higher costs. Note the deadline and, if you need more time, a short request for an extension is normal and usually granted.

Then start working through the situation calmly.

Step 1 – Work out what the letter is really based on

Swiss law protects names and brands through several different regimes, and they don't all give the same rights:

  • a registered trademark under the Trademark Protection Act (MSchG);
  • a company name (the Firma in the commercial register) under the Code of Obligations (OR) and a name under the Civil Code (ZGB);
  • in some cases, unfair competition rules (UWG).

Read the letter carefully and identify which of these the other side is invoking. Very often, the letter relies on a trademark, a company name, a name, unfair competition, or all of the above.

Step 2 – If the letter is based on a trademark

Here you're essentially checking whether there is a likelihood of confusion – the core test of Swiss trademark law. Work through the following questions.

a) Is there actually a valid earlier trademark?

You can readily check Swiss and international registrations yourself in the public registers (e.g. Swissreg for Swiss marks). Confirm that the mark exists, is registered, is still in force, and that it is genuinely older than your use or registration. If there is only an application or an expired registration, the picture changes.

b) Are the signs identical or similar?

Two identical signs used for identical goods or services are the clearest case of infringement. Most disputes, though, are about similarity. Swiss practice looks at three dimensions, and similarity in any one of them can be enough:

  • Visual – do the words or logos look alike (spelling, length, graphic elements)?
  • Phonetic – do they sound alike when spoken aloud?
  • Conceptual – do they carry a similar meaning or evoke the same idea?

A helpful test: imagine an average, reasonably attentive customer who does not see the two brands side by side but remembers one and later encounters the other. Would they plausibly mix them up or assume a connection? The more distinctive the earlier mark, the more protection it gets; weak or descriptive elements count for little.

c) Do the goods and services overlap?

Trademark protection is typically tied to the specific goods and services for which the mark is registered (classified in "classes"). So the question is whether your products or services are the same or similar to theirs – think about whether they serve the same purpose, reach the same customers, or are sold through the same channels. Similar signs for genuinely unrelated goods and services often do not create a likelihood of confusion.

There's an important interplay here: the more similar the signs, the less overlap in goods or services is needed for confusion – and vice versa.

d) Is their trademark famous/well-known in Switzerland?

This is a key exception. Under Art. 15 MSchG, the owner of a famous/well-known mark (berühmte Marke) can prohibit its use for any type of goods or services – even completely unrelated ones – where that use would take unfair advantage of, or harm, the mark's reputation or distinctiveness. This is cross-class / cross-goods-and-services protection.

So if the other side is a famous/well-known brand, don't assume "different products = no problem". But note that being famous/well-known is a high bar: it has to be proven with real evidence of intensive use and recognition in Switzerland – it is not enough to simply assert it. The burden of proof is high.

e) Is their trademark older than five years – and is it actually being used?

This is one of the most useful checkpoints, and it's frequently overlooked.

Under Art. 12 MSchG, a trademark owner who has not genuinely used the mark for the registered goods/services for an uninterrupted period of five years can, in principle, no longer enforce it – unless there are proper reasons for the non-use.

Practically, this means:

  • If their mark is younger than five years, it sits in a "grace period" and non-use cannot be held against it yet.
  • If their mark is older than five years, ask the practical question: are they actually using it in Switzerland for the relevant goods and services? If not, you may have a powerful defense.

Step 3 – If the letter is based on a company name

Sometimes the other side isn't waving a trademark at all, but their company name (the official name in the commercial register). This is protected under the Code of Obligations, and the logic differs from that of trademark law. Names that are not registered are protected under the law on names as set out in the Civil Code.

a) Are the names identical or similar?

A registered company name enjoys a degree of exclusivity, but the assessment again turns on whether an average person would confuse the two businesses. Generic or descriptive components (industry terms, legal-form suffixes like "AG" / "GmbH" / "Sàrl", geographic add-ons) carry little weight; the distinctive core of the name is what matters.

b) Further criteria

This is often decisive. Consider:

  • Where does each business actually operate? A purely local business and a business at the other end of the country may realistically not compete for the same customers.
  • The strength and reach of the name. A well-established, nationally known name may get broader protection than a small local one.
  • Type of legal entity. Sole proprietorships (Einzelfirma) enjoy protection under company law within their own region, whereas commercial companies (Handelsgesellschaften, e.g. AG, GmbH) enjoy such protection throughout Switzerland.

Also keep the categories distinct: a company name mainly protects against others using a confusingly similar company name, and a trademark protects against confusing use as a brand. If the other side only has a company-name right, they may have limited grounds to stop your use as a mere product brand. Aside from that, and where a plain trademark or company-name claim doesn't fit, the other side might fall back on unfair competition law (UWG), which protects against the likelihood of confusion between signs, unfair comparative advertising, unfair imitation, and damage to reputation.

Step 4 – Consider coexistence

Litigation is expensive, slow and stressful – for both sides. Before assuming you must either surrender or fight to the end, ask whether there is room for the two of you to coexist – and whether that also makes sense from the perspective of the other side.

Coexistence often works when, for example:

  • you operate in different industries or customer segments;
  • you operate in different regions with little practical overlap;
  • small, workable distinguishing measures would remove the likelihood of confusion (adding a distinctive element, adjusting a logo, limiting certain goods/services, agreeing on geographic or online boundaries).

A well-negotiated and well-drafted coexistence agreement can provide both parties with legal certainty, avoid costs, and allow everyone to get back to business.

Step 5 – When in doubt, get specialist advice (within the set deadline)

The steps above will help you understand your situation and avoid the worst first-move mistakes. But trademark and company-name conflicts turn on fine distinctions – how similar is "similar", how strong is the other side's right, is the trademark famous, and is it actually being used? Getting that judgment wrong can be expensive — it can even cost you your name.

A specialist can:

  • assess how strong the other side's claim really is;
  • check the registers and the use situation;
  • identify defenses you might not spot (non-use, prior use rights, lack of similarity, limited scope);
  • and handle the response and any negotiation strategically.

A short, early consultation is often cheaper than reacting the wrong way to the letter. If you need help finding a specialist, contact us via our form.

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