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Show \8 __ TheSalt Lake Tribune BUSINESS Sunday, January9, 2000 Rights to ‘Swiss Army’ Name In Handsof U.S. Company Marketing agreementhelpsnation protect trademark HUMBERTO CRUZ Six Simple Financial Resolutions So, have you broken your New Year's resolutions yet? If you have, you havea sec- ond chance. Here's a new set of resolutions I purposely kept out of mycolumnuntil today. I didit because NewYear's resolutionsare often unrealistic and doomedtofail. If we are out of shape physically, we promiseto gointo a crashdiet and run acoupleof miles a day. If we are out of shape financially, we resolve to save 20 percent out of every paycheck and become stock- marketexperts. Then,as soonastheinitial enthusiasm wears off and we THEASSOCIATEDPRESS GENEVA — Switzerlandisfiercely protective ofits centuries-old armed neutrality, which has faced down potentialfoes as well as kept the Swiss out of the friendlier embrace of the United Nations and European Union. Yet the very symbolofthat independence the Swiss Army name is firmly in American hands. Under a landmark agreementwith the Swiss Defense Ministry, a Connecticutbased company owns sweeping rights market products under the “Swiss Arm name andthedistinctive Swiss cross. Two Swiss companies that supply the knivesactually used by Switzerland’s militia armyalso market commercial versions, but their brands are longer names that contain the words “Swiss Army.” Fewpeople in Switzerland seem aware that a companyon the other side of the Atlantic is entitled to virtually exclusive use of the Swiss Army name. Whentold, mostare incredulous. “You've got to be joking,” Maurice Lavergnat, a Genevaflorist, said in a typical reaction. igned three years ago, the deal with slip, say aroundthe first or Swiss Army BrandsInc.of Shelton, Conn., give up andgo backto our old is meant to protect the Swiss Army trademark and quality standards of Swiss-made goods and clamp down on unauthorized products with military sounding names. second week in January, we al That is whyI usuallydon't makeor write about New Year's resolutions. Besides, what's so magical about Jan. 1 anyway? Youcanresolve to make significant changes in yourlife any time you want, whetherit's Jan. licensed to an American company because of commercialreality — the fact that Swiss ArmyBrands spent millions of dollars building up markéts over several decades Year's resolutionideas that flooded mydesk, I came across alist that made sense and got my immediateattention. ‘Thelist — short, doable and yet effecti came fromthe Institute ofCertified Financial Planners,a professionalorganizationforfinancial advisers. ‘These resolutionsareas valid today as they were on Jan. 1 — you have a more realistic chanceof keeping themnowthat the holidays areover. 1. Review yourfinancial aneveningto mull over whereyouarefinancially ‘ou wouldlike to end, five years nd soon. Includeyours jouse, other family members ind whoever has afinancial stake with you, suchas an agingparent. “Don’t makea big produc- tion out ofit,” said Brigid O'Connor, spokesmanforthe Financial PlanningAssocia- tion, of whichtheInstituteis part. “Keepit informal. Just a simple note pad and pen and an open mind. Review your overall financial situation and brainstorm what goals eve onewouldlike to accomplish. As O'Connorpointsout, this exercisegets everyone to think about financial goals. AndI would add, it also gets family members share important dreams and goals with one another. 2. Spendless than you earn. Howmany times have you heard me say that? “This is one foolpr‘oof way to build wealth,” O’Connorsaid. 3. Save and invest regularly. Don’t worry about whether the marketis up or down or moving sideways. “As the ad ys, ‘Justdoit,’ eid, O'Connor 4. Start investing in a retirement fund, or add to it. Join your retirement plan at work,orif oneis not available, open an individual retirementaccount. (Actually, you can do both.) Or, if you are self-employed, set up a taxdeferred Keogh plan. If you alreadyparticipate, kick in moreif youare not contributing to the maximum. 5. Write a will, or update it if you already have one. You might makeuseof otherestate-planningtools, suchastrusts. & Review yourinsur- The ministrywill say onlythat the con- tract earns $6,000 to $12,600 a monthin royalties, depending on sales. Swiss Army Brands hada profit of $1.5 million on revenues of $128 million in 1998. “It was the best possible solution for the brand because wearrived 40 years too late” to protect the trademark for Switzerland itself, Loehrersaidofthe deal. Determined to defendits territorybetter in the future,the Defense Ministryhas filed ‘Beatrix Stampfli/The Associated Press The Bernesebear, symbolof the Swiss capital Ber, bites a Swiss Armyknife at a souvenir shop in Geneva. A U.S. company ownsthe marketing rights to the name. for international trademark protection of the “Swiss Army XX!” nameand logo to prevent foreign companies taking the label Andin far cry from the stinking feet This will notaffect the existing rights of and sweaty armpits that pervade many military barracks, another company makes Swiss Army EaudeToilette for men. Sold in a military-type flask, it’s a success in the for themselves. Swiss Army Brands, which hopes to con- tinue to indulge Americans’ long-standing love affair with the Swiss Army concept. “U.S. consumers have a very glamorous, romantic vision of the Swiss army,” said United States and Middle Eastbutis rarely found in Swiss stores. “That's totally perverse,” said August Rick Taggart, president and chiefexecutive Hager, a 43-year-old real estate worker who said he hated every minuteof his conscript duty. “What's it made of, cow dung?” he asked. of the company. Swiss Army Brands works closely with Switzerland's Victorinox, which has produced the “Original Swiss Army Knife” for more than 100 years. In addition to the ubiquitous knife, the American company’s Web site abounds with Swiss Army watches, pens and linguistic balance, the army has always bought half its knives from Wenger, based in the French-speakingpart of the country, and the other half from Victorinox in the German-speakingpart. Bythe samelogic, the Defense Ministry's marketing deal with Swiss ArmyBrandsis extended to Precise. But Wengerandits U.S. arm remainfrustrated at the extentof their competitor's domination. Thetoiletry range is producedby Precise “I knowseveral Swiss industrialists who were shocked that the Swiss Army brand namewasoffered to an American company marketing arm of the Swiss company and not to them,” says Wenger President Jacques Saucy. International of New York, whichis the U.S. Wenger,maker ofthe “Genuine Swiss Army Knife.” In deference to Switzerland's delicate compasses. US WestFighting Lawmakers Lookingto Lure To End Regulations @ Continued from E-1 Competition BY STEVEN OBERBECK LAKE TRIBUNE THE ALT To freeze US West'srates or not to freeze them. For Utah lawmakers, that may be a question theywill face during the 2000 Legislature. When the Telecommunications “It's crazy,” he adds. “We have the world’s leading watch industry and yet we give the rights to an American company.” charges consumers could be free of state regulation. Humberto Cruzlives in Coral Springs, Fla, Write him 435 N. Michigan Ave., Suite 1400, Chicago, IL 60611. Send e- mail to HCruz5040@aol.com. market.” 919956 And even when it comesto serving business customers, US Westisstill the main player.It Telecommunications Industry in Utah, the PSC frozen and stay away from a cost index, House Speaker Marty Stephens said last week at an informal meeting of regulators and industry representatives to discuss possible legislation. The theoryis if US West’s rates are governed bythe cost index, theywill go down becausethe cost of providing services through the telecommunications industry generallyhas been declining. Wireless PhoneService service exists. controls more than 330,000 business linesin its service territory, or about 86 percent of the market. Competitors serve 47,000 lines. When the Legislature passed the Telecommunications Reform Act of 1995, competition for telephone and other services appeared imminent. And competition was viewed as the best way to keep telephone rates down for everyone. Still, the new law stopped shortof giving US West freedom to charge whatever it wanted until true competition arrived. The law provided that US West’s business and residential rates would befrozen for several years and then replaced by a PSC- $24.99 Source: US West _—# Rhonda Hailes Maylett / The Salt Lake Tribune legislative session and the No.1 issueis elimi- keep the current rate freeze in placefor resi- US West compertors including MCI/ Worldcom and AT&T donotbuy the: company’ 's argumentcompetition is flourishing in Utah. “Weare moving in thatdirection but we are not there yet,” said Bill Levis, MCI/ Worldcom’s director of public policy for the dential customersif lawmakerswill only allow the company the samekind ofpricing flexibil- build its phone network. The problem is we natingtheprice index in the statute, said Ric Campbell, director of the Utah Division of PublicUtilities. US West willtell legislatorsit is willing to ity forits business servicesthatits competitors enjoy. Campbell, however, has noted that costs By keeping thefreeze in place, administered price index that would be based throughoutthe telecommunications industry thestatewill be keeping US West's rates artificially high. Competi- on how muchit cost the companyto provideits have been declining. With that in mind, the rate index may be the only wayfor residential tors then will wantto take advan- services to customers. Theprice indexis scheduled to takeeffect at tage of the windfall by grabbing a share of the residential phone clearit doesnotlikethe idea. It views the index market. Stephen Mecham, PSC chair- Long-Distance $14.35 $26.43 said no substantial competition for residential when it comes to providingresi- $18.25 ch EE “Sure, AT&T and MCI/Worldcom are giant US West remains a monopoly Commission (PSC). Service Ss Basic Cable TV Service dential phoneservice. SomeUtah legislators believe the best way to bring competition for residential phone service to Utah is to keep US West's rates lawmakersdonotintervene, rates US West Basic Service Internet Perhaps, but things may notbe so simple. will be governed bya cost index set upby the Utah Public Service In the meantime, US West's rates were frozen for several years. At the endof this year, if the end of the year. But US West has madeit as just anotherformofregulation. US Westhas an agendafor the upcoming and other customers who do nothaveaccess to competitorsto see the benefits of cheaperrates. “US West has enjoyed relatively healthy earnings under the current price freeze,” he added. Western states. “US West has had decades to have a limited base of customers and areas where weserve.” The federal TelecommunicationsAct of 1996 allows for regional Bell operating companies such as US Westto offer long-distance services to their customersas soon as it proves to the Federal Communications Commission (FCC) that it has opened up its network to competi- tion, Levis said. “If US West really believes there is competition, then why hasn'tit filed with the FCC to offer long-distance service in Utah?” he asked. man, said there may be a problem with that reasoning. “I cannot guarantee that if we adopt the index, the cost of providing services will go down,” he said. In fact, residential phone rates may be too low already. “Ourlatest cost studies show residential rates need to go up,” said Ric Campbell, director of the Utah Division of Public Utilities. If the cost of providing residential service needs to go up while US West's rates are frozen that could discourage competitors from offering residential service How SweelAIs. in competition with US West. THE WALL STREET JOURNAL The people who run charities and other nonprofits have a long history of managing under uncer- tain conditions, satisfying multi- 60 o%y Mountain America Credit Unionintroduces the ‘Sweet Sixleen : Term Deposit account. Fora limited time get a sweet 6.60 annual percentage yield on a 16-month term when you deposit just $1,000 or more. Life hasn’t been this exciting since you were well, sweet 16! Visit orcall the Mountain America office nearest you today. eNQUA MOUNTAIN AMERICA CREDIT UNION ple stakeholders, building pas- sionate work forces and developing nonfinancial mea- c/o Tribune Media Services, “Our competitors say ‘Don’t change any of the law because big bad US Westwill drive us out of business, mith said. “Well, you could not drive AT&T, MCI and Sprint out of this companies. But when youare trying to gauge the extent of competition, you also have to look at the resources they have committed to providingserviceson thelocallevel,” PSC chairman Stephen Mecham said. “US Westis still the dominant company.” In its November report, The State of the Nonprofit managers may teach a thing or two to corporate counterparts. to recover,if ever.” vice Commission (PSC), its giant competitors toa time when US Westno longer is an urgent areato address,” health problem, death or disabling injury, any of which could happen tomorrow, can create financial problemsthat could take years from which underthe watchfuleye of the Utah Public Ser- Lawmakers who turn to the PSC for an was a monopolyand the rates it Utahns are spending plenty each month to provide themselveswith thelatest in high-tech communications services. Basic telephone service aside, a hostof companies competefor a share of each family's telecommunications budget. are free to charge whatever the marketwill bearfor their services,hesaid. opinion on the state of telecommunications competition in Utah will get a vastly different view from the one offered by US West. Utah lawmakers looked forward Corporations Could Learn From Nonprofits O'Connorsaid.“A major Telecommunication Expenses for Families Reform Act of 1995 was passed, Not iust life insurance, but the gamut ofinsurancethat can help you weathera financial catastrophe:health, disability, homeowner's or renter’s, liability, automobile and possibly long-term care.“This ee cut-price look-alikes from China “Weare concerned about cheap imitations,” said Daniel Loehrer of the Defense Ministry. “That's one of the reasons we madethe deal.” or March 18 orJuly 8 or Oct. This year, however, among the pile of mail with New and perhaps Officials say marketing rights were and wasn't aboutto change its nameat the request of Swiss bureaucrats. Also, a U.S. companywas considered to have far more clout than the Swiss in fighting piracy and surementsof goals — the kind of issues that are becoming hot topics in corporate management. That is the message in a report from Harvard Business School Publishing Corp., Boston. > ‘ Minimum deposit of$1,000. The AnnualPercentage Vield (ary) is accurate as of 12/24/99, subject to change without notice, Penaltyfor early withdrawal. Call 1-800-748-4302 or visit our internet site at www.mtnamerica.org. Membership required — based on eligibility. |
