Controversy over Swiss flag on On shoes

Context

In brief

• The Federal Institute of Intellectual Property has allowed On to use the Swiss flag on its shoes.
• The shoes are produced entirely abroad.
• The decision has sparked controversy in the Swiss business world.

Key facts

• What: Permission to use the Swiss flag on On shoes.
• When: Decision made public on March 26, 2026.
• Where: Switzerland.
• Who: Federal Institute of Intellectual Property (IPI).
• Amount: Not specified.

The Federal Institute of Intellectual Property (IPI) has recently granted Swiss company On permission to use the Swiss flag on its shoes, despite the fact that production is entirely abroad. This decision has sparked lively controversy in the Swiss business world. The company, known for its running shoes, has received permission to apply the red cross to its products, even though they are manufactured in Asian countries.

The IPI justified the decision by stating that this measure is necessary to maintain development and research activities in Switzerland. However, competitors fear that this decision could undermine the credibility of Swiss brands. Urs Furrer, director of the Swiss Trade and Craft Federation, expressed strong irritation at this decision, calling it incomprehensible.

Rules on trademark protection

Previously, the rules on trademark protection stipulated that to use 'Swiss made', 60% of production costs had to be generated in Switzerland, including an essential step in manufacturing. After lengthy discussions with the company, including threats of legal action, the IPI has now made the rule more flexible: On will be able to use the cross between the two words Swiss and engineering, thus recognizing that development and design are carried out in Switzerland.

Competitors' protests

The reaction of various competitors was immediate. Those who produce in Switzerland protest, as do those who produce abroad and could take advantage of the novelty. Roberto Martullo, among other things the husband of UDC politician Magdalena Martullo-Blocher, is the owner and director of Küzli SwissSchuh, footwear manufactured in Portugal and Albania. For him, the red cross should remain a reward for those who export after producing in Switzerland, where costs and wages are higher.

On, on the other hand, believes that the relaxation of the rules strengthens innovation and competitiveness of Swiss companies in the global market. And it is precisely this motivation with which the Federal Institute of Intellectual Property justifies the new interpretation.

The economic context

The current economic context is very different from 2017, when the law on the Swiss brand was decided, notes the legal expert of the Institute, Alexander Pfister. Today, many exporting companies are forced to consider whether to move production abroad, maintaining in Switzerland only the core of research, development and design. It is therefore legitimate, according to him, to take this into account.

Fears for reputation

Not everyone thinks the same way. The Swiss watchmaking federation, even if not directly affected by the change, fears that the Swiss brand will now lose credibility, that the reputation of the Swiss industry is at risk, and ultimately also jobs. The issue has also made it onto the political radar, with a deputy promising to discuss it in Parliament.

Political Reactions

Urs Furrer, director of the Swiss Union of Arts and Crafts, which represents many small and medium-sized enterprises, also reacted strongly to this news. He spoke of an incomprehensible decision by the Federal Institute of Intellectual Property. The radio program SEIDISERA of RSI then asked him if he intends to now take the battle to court or at a political level.

"We express our discontent at a time already difficult for Swiss industry. There is no reason to water down the criteria for the protection of the Swiss brand. We are now analyzing the consequences for the Swiss industrial sector, and we will decide what actions to take," Furrer declared.

RSI: In fact, the current rules are not even a guarantee of 100% Swiss production, so why is it so serious for you to make them a bit more flexible?

Urs Furrer: The current law, in force since 2017, is already the result of a compromise. Those who develop products in Switzerland but produce them abroad can already today use the term 'designed in Switzerland.' The novelty now is that they can also use the Swiss cross. According to us, however, the red cross is synonymous with Swiss made, which indicates production in Switzerland. Why should the production work, the manufacturing, have such high recognition? Is it worth more than the development and design work? The good reputation of Swiss products is due to excellent technical and craftsmanship skills, to high production quality. That is why it is decisive to protect the goods manufactured here with the

Operational details

Implications for cross-border workers

The decision by the IPI to grant On permission to use the Swiss flag on its shoes, despite production taking place abroad, could have significant implications for cross-border workers employed in Switzerland. In particular, the issue concerns the perception of the quality and authenticity of Swiss products.

Comparison with the previous situation

Before this decision, the rules on trademark protection were stricter. To use the 'Swiss made' label, 60% of production costs had to be generated in Switzerland, including an essential step in the manufacturing process. This rule ensured that products bearing the Swiss label were indeed made in Switzerland, guaranteeing a certain level of quality and authenticity.

Future scenarios

With the new interpretation of the rules, it is possible that other companies will follow On's example, seeking permission to use the Swiss flag on their products, even if they are produced abroad. This could lead to increased competition and a potential dilution of the value of the Swiss brand.

Impact on reputation

The decision could also affect the reputation of Swiss products. If consumers perceive that the Swiss label no longer guarantees production in Switzerland, they may lose confidence in products with this label. This could have a negative impact on sales and the competitiveness of Swiss companies.

Political actions

The issue has also caught the attention of politicians, with a deputy promising to discuss it in Parliament. This indicates that the decision could have political implications and that measures may be taken to modify or revoke the new interpretation of the rules.

Conclusion

In conclusion, the IPI's decision to grant On permission to use the Swiss flag on its shoes, despite production taking place abroad, has sparked controversy and could have significant implications for cross-border workers and the reputation of Swiss products. It will be important to monitor future developments and see how this decision is managed at the political and business levels.

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Key points

What to do if you are a cross-border worker

If you are a cross-border worker in Switzerland, it's important to be aware of the implications of this decision. Here are some steps you can follow:

1. Stay informed: Keep an eye on the news and developments regarding this decision. There may be further changes or discussions in Parliament. 2. Consider the impact: Think about how this decision might affect your work and your perception of Swiss products. 3. Join the debate: If you're interested, you can participate in the public debate and express your opinion. 4. Support local businesses: If you're concerned about the impact on the reputation of Swiss products, you can choose to support companies that produce in Switzerland.

Useful tools

For further information and to calculate your net salary, you can use our salary calculator. This tool will help you better understand your financial situation and plan for your future.

Conclusion

The decision of the IPI to grant On permission to use the Swiss flag on its shoes, despite production taking place abroad, has sparked controversy and could have significant implications for cross-border workers and the reputation of Swiss products. It's important to stay informed and participate in the public debate to ensure that the decisions made are in the best interest of everyone.

Source: tvsvizzera.it