In its decision from the year 1999 (BGE 126 III 129), the Federal Supreme Court set up the principle of national exhaustion for patent law whereby the patent owner can legally prevent his patent-protected products, that he has launched into a foreign market, to be imported into Switzerland against his will. The principle of national exhaustion has been controversially discussed since the Federal Supreme Court's decision.

Basically, the principle of unilateral (i.e. without establishing a reciprocal agreement) regional exhaustion in relationship to European Economic Area member states should be applied. Patent-protected products that are placed on the market within the European Economic Area with the consent of the patent owner can be imported without his consent. The import of those products, which have been placed on the market outside of the European Economic Area by the patent owner, continues to be possible when the patent protection for the functional characteristics of the product is of only secondary importance. For products whose prices are fixed by the state both in Switzerland and abroad, the Councils will decide whether the patent owner’s consent for importation is necessary. National exhaustion is therefore valid to this extent. This specifically affects pharmaceutical products. Article 27b of the Federal Agriculture Act (SR 910.1) remains unchanged. International exhaustion continues to be valid for agricultural means of production and capital goods.

In the course of dealing with the question regarding exhaustion, the Councils decided to abolish Article 14, para. 3 of the Therapeutic Products Act (SR 812.21). This specifies that the Swiss Agency for Therapeutic Products (Swissmedic) may permit an approved original medication as long as it has not been simplified for import because the original medication is patent protected. With the deletion of Article 14, para. 3 from the Therapeutic Products Act, parliament wanted to distinguish between public law duties and private law enforcement regarding patent laws.