Summary judgements to keep the exhibition peace

The Baselworld Panel is a unique institution instrumental in keeping the watch and jewellery industry free of imitations or, indeed, counterfeits.

Quietly, unobtrusively and effectively the Baselworld Panel has gone about its business for more than 20 years. At the world's premier watch and jewellery fair an internal arbitration board deals with infringements of trademark rights, in other words designs, brands, patents and cases of unfair trading. Its rulings not infrequently resonate beyond the exhibition itself, forming a basis for domestic and foreign court judgements. The panel is a much regarded institution in the watch and jewellery world and has remained a unique instrument in the exhibition world in terms of its assertiveness. "World trade also means observing certain rules," says Christoph Lanz, Management and Legal Services Leader at MCH Swiss Exhibition Ltd. and Secretary to the Panel.
In the case of the watch industry the production of counterfeits worldwide is estimated at more than 40 million items worth around EUR 7 billion - equivalent to estimated net profits of EUR 1 billion a year. Although it is difficult to put a figure to the value of imitations and the number of unreported cases is believed to be high, there is little doubt about these calculations, Lanz insists. The damage to those concerned is similarly difficult to quantify. The association of the Swiss watch industry reckons on a sum of EUR 500 million.
In the early 1980s many exhibitors at the watch and jewellery show saw themselves confronted with imitations of their designs, infringements of their trademarks or unfair trading practices. They had to react, but the only avenue open to them was action before the state court in Basel, which imposed injunctions for the duration of the fair. "The result was that the court was brought to a standstill during the fair: it was completely overwhelmed, and the atmosphere in the exhibition halls was one of uncertainty and disquiet," he recalls. The show management reacted promptly, creating an internal mediator in the form of the Panel", says Lanz, who at that time switched from the court to the exhibition company. "The Panel takes precautionary measures for the duration of Baselworld, confined location-wise to the exhibition ground," he explains. "It doesn't hand down any hard-and-fast rulings - which is not to say that its decisions don't have an impact way beyond the exhibition." Incidentally, the exhibitors sign up to the legal basis for the Panel's activity with their registration. In the exhibitor contract each individual acknowledges the Panel as exhibition arbitrator and, by signing the agreement, undertakes to be bound by the Panel's decisions.
This method is efficient and the rulings competent. Exhibitors who discover the imitation of a registered design or a trademark infringement at Baselworld can file a complaint with the Panel up to 16:00 on the same day. All the complainants need do is to submit the necessary documents as proof of their copyright. The members of the Panel, two experienced specialists from the timepiece sector, a jewellery expert of non-Swiss nationality and two to three lawyers of Swiss nationality, convene each day at 17:00 to discuss and pass judgement on all the complaints filed that day.
As from 9:00 next day the Panel members announce their decisions at quarter-hourly intervals. If complaints are dismissed the products objected to may remain on display. "If approved, the exhibitor against whom the complaint is brought must sign a statement undertaking to refrain from the violating behaviour.
The Panel's decision takes immediate effect and must be implemented without delay. If necessary the exhibition management will take further steps, going as far as closure of the exhibitor's stand. In serious cases exhibitors are banned from taking part in the next exhibition, Christoph Lanz says. "If you like, our work is based on mediaeval tradition: summary judgements to keep the exhibition peace." The benefits: "Exhibitors know within a short time where they stand and have legal security." Names are not publicised, the proceedings are conducted in camera. Discretion is a matter of honour in Switzerland. Lanz is also aware that a Panel decision is, at the same time, always a decision against a client. The fast-track rulings at Baselworld set an example for others: dispute resolution at the Olympic Games takes its lead from them.
In the 22 years since its institution the Panel has had to deal with somewhat more than 700 cases, although not all of these required an official ruling. Respect for the institution is enormous, and sometimes the fact of its being appealed to alone suffices to bring about an out-of-court settlement between the parties. In 74 % of the complaints the experts were called upon to adjudicate, rights having been violated. In the remaining 12 % the complaints were dismissed. "We take action when an exhibitor requires our services - without prejudice to the other party's rights." Christoph Lanz sees the Panel as part of MCH's quality management. Exhibition companies that hold intellectual property rights high must address the issue of infringement of copyrights, he insists.

m+a report Nr.5 / 2006 vom 14.08.2006
m+a report vom 14. August 2006