We caught up with Yves Bugmann, who has been President of the Federation of the Swiss Watch Industry (FH) since 1 January 2024, having previously headed up its Legal Division since 2006.
Yves Bugmann took over from Jean-Daniel Pasche, who by all accounts is now enjoying a well-deserved retirement! An insider for almost two decades and a polyglot whose mother tongue is German, Bugmann is as familiar with the ins and outs of the FH as he is with the workings of the Swiss administration.
Swiss watchmaking, a global exception
Within Switzerland itself, watchmaking is already a sector apart. In a global context, and at the heart of well-organised Europe, it enjoys a unique status that smacks of exceptionalism. “I’m proud to be working for a flagship of the Swiss economy, a sector that employs 65,000 people and is our country’s third-largest export industry,” says Bugmann.
The FH has been a fixture at the EPHJ Show from the start. Will its new President continue the trend?
As a trade fair for watchmaking subcontractors, EPHJ and the companies in this sector occupy a strategic position in the Swiss watchmaking ecosystem. Many of these companies are FH members. They’ve built up a unique know-how and expertise, and together they form a powerful industrial fabric that is the envy of many other countries. They also provide large numbers of high-quality jobs. Personally, I really enjoy attending EPHJ, as do a number of my FH colleagues, particularly those in technical roles such as watchmaking standardisation.
Incidentally, can a watchmaking co-contractor other than a motor manufacturer become an FH member or is this reserved for brands?
Under our articles of association, companies belonging to the Swiss watch industry can become members. A link of any kind is therefore enough for membership of the federation, as long as the structure is based in Switzerland and manufactures Swiss products.
Your predecessor was a high-profile figure. His can’t be easy shoes to fill!
It goes without saying that Jean-Daniel Pasche is a hard act to follow! He led the FH with great skill and acumen for over 30 years. But the world is changing, as are Swiss watchmaking and its needs. It was with this in mind that I began my first term as President, with the aim of continuing to work on the FH’s main priorities, namely defending free trade, improving conditions for the industry both nationally and internationally, tackling counterfeiting, and promoting ‘Swiss made’, as well as standardisation in the watchmaking sector and public affairs.
Is having German as your mother tongue an advantage?
My intention is to raise the industry’s profile in German-speaking Switzerland, where people are mostly familiar with the big brands in our sector but not with the incredible history and centuries of heritage behind them. Giving speeches in several languages – French, German, English and Italian – is a pleasure. I’m well catered for in that respect, so no complaints there!
If you had to make an initial assessment, how would you say things have gone?
While Federal Councillors have 100 days to take stock, FH presidents get much less time! This year, we’ve stepped up our exchanges with institutional players and industry stakeholders. We’re also in the process of centralising anti-counterfeiting activities under the auspices of our association in order to better meet the needs of our members. Plus, we’re modernising the way we communicate with FH members, the authorities, our partners and the general public.
How are you finding the constant duty to represent the federation required by your new role?
It’s more of an honour than a duty. It’s an integral part of the President’s role. My many years of experience at the FH are helpful in this regard, as the President is rightly expected to be able to speak about any subject related to watchmaking. Reaching out and listening to people is also important: I often meet people who are passionate about watchmaking, which naturally leads to some interesting discussions.
Does the FH have influence with the Swiss government when it comes to ‘Swiss made’?
“The ‘Swiss made’ Ordinance was beefed up in 2017 and is among the world’s strictest legislation on geographical indications”
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No other industrial sector is as closely associated with Switzerland as ours. Switzerland is synonymous with watches, and watches with Switzerland. The ‘Swiss made’ label gives significant added value to Swiss products, particularly in the watch industry. Consumers in South Korea are willing to pay twice the price for a ‘Swiss made’ watch, which goes to show the incredible strength of the brand. The FH liaises closely with the Swiss Federal Institute of Intellectual Property when it comes to defending Swiss geographical indications, including ‘Swiss made’ as well as other terms such as ‘Geneva’, both in Switzerland and also, especially, abroad. We can also activate diplomatic channels through our regular contacts with SECO [the State Secretariat for Economic Affairs], in order to defend our labels abroad. Defending ‘Swiss made’ watches is at the top of our list of priorities.
Does a brand or company have to be a member of the FH to refer to itself as ‘Swiss made’?
No, there’s no obligation to be an FH member, and that’s the way it should be.
| Swiss made: beyond the calibre?
When first passed in 1971, the Federal Ordinance on ‘Swiss made’ applied only to the watch movement. Despite a number of revisions to the legislation and the FH’s historic fight to secure specific regulations for the watchmaking industry (sometimes pitting it against EU interests), resulting in the rule whereby 60% of the manufacturing costs must be incurred in Switzerland, not every part of a watch is covered by ‘Swiss made’. Which parts aren’t included? Yves Bugmann: “The ‘Swiss made’ Ordinance for watches refers to the watch head but not the strap. However, if the strap is marked ‘Swiss made’ and is removable, it must meet the criteria of the Trade Mark Protection Act, which stipulates that at least 60% of the manufacturing costs of the strap must be incurred in Switzerland and that an essential manufacturing step must take place there. All the other components making up the watch head are affected by the application of the Ordinance, whether through the criterion of technical development having to take place in Switzerland or the criterion of 60% of manufacturing costs having to be incurred in Switzerland. In addition, to be considered Swiss, the movement and case must still meet the strict criteria set out in the Ordinance. The Ordinance was beefed up in 2017 and is now among the world’s strictest legislation on geographical indications.” |
But you do have some persuasive arguments?
Many companies contact us because they’ve heard about the guides we produce to help our members apply or interpret new legislation in Switzerland, the European Union or the United States. These documents allow us to present sometimes complex content in simple terms, and explain it using diagrams or examples.
What other benefits do you offer?
There are many issues where it makes sense to work together, such as defending the industry’s interests in a new free trade agreement with India. We have to convince our members and potential members of the relevance and added value of our services.
Yes, Switzerland has some of the strictest legislation in the world in this regard, but do you have the means to enforce it?
For starters, Swiss watchmakers who use the term ‘Swiss’ on their products are supposed to know the rules and to abide by them. If they don’t, they can be sued by a third party. Defending ‘Swiss made’ watches is one of the FH’s core activities, and it has a long track record in this area. It advises companies in the sector and, if necessary, takes legal action in Switzerland and elsewhere. To further protect the label, the FH has registered ‘Swiss’ and ‘Swiss made’ as trademarks in the United States, the European Union and Hong Kong. These marks enable the strict criteria of the Swiss ordinance to be applied in other jurisdictions. Furthermore, if a third party registers a watch trademark that wrongly contains the word ‘Swiss’, the FH can intervene and oppose the registration.
OK, but what about possible sanctions or fines?
Under the Federal Act on the Protection of Trade Marks and Indications of Source, or TmPA, misuse is punishable by criminal sanctions. Offenders are liable to fines or even custodial sentences, depending on the seriousness of the offence. The TmPA also provides for civil actions to sanction non-compliance with ‘Swiss made’ criteria. Such actions allow injured companies to seek financial redress.
https://www.fhs.swiss
Joël A. Grandjean/JSH News 1876