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The Empire Strikes Back: Specialized Sues A Bike Shop Over Name


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Shamepies, Somebloke.

Did you read what I said earlier, it's a controlling share in a factory, not the brand as all the old wives tales say.

As to the percentage, not even the people that printed or wrote the articles know the actual percentage other than the fact that Mike has the controlling share in said transactions.

 

 

Sorry Dips, I promised I won't post again.

Please all, direct your questions and kisses to me via pm. or create a different thread, a promise is a promise.

 

 

BWHAAAA,,,,,JUST EDIT YOUR POST ILL LET IT SLIP,,,,,,THIS TIME

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Shamepies, Somebloke.

Did you read what I said earlier, it's a controlling share in a factory, not the brand as all the old wives tales say.

As to the percentage, not even the people that printed or wrote the articles know the actual percentage other than the fact that Mike has the controlling share in said transactions.

 

 

Sorry Dips, I promised I won't post again.

Please all, direct your questions and kisses to me via pm. or create a different thread, a promise is a promise.

 

I read what you said but you're the only source I have for that statement. So you're saying that the company that produces Specialized bikes in their own factory paid for a share in the factory of the company they produce bikes for? Just the factory?

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Whilst I feel for the little guy in this scenario I can identify with the problem that Spez is facing from personal experience. Sometime back I worked for one of the major construction companies and a small contractor used a name very similar to the company I worked for. At the time we decided that the guy was so small that we wouldn't bother taking any action regarding the brand as clearly the consumer could not be confused between the two, a sort Goliath and midget comparison.

 

Boy, were we wrong. This small contractor undertook the construction of a private residence and went bankrupt before finishing the house. The owner decided to seek redress by suing us based on the fact that he was led to believe that he was contracting with a large company such as ours. Of course our defence was quite simple we were not the contractor and there was no legal nexus. We were quite surprised that the case even went to court and even more surprised at the outcome where the court found that the owner had to carry 80% of the liability for not checking whether he was indeed contracting with us. They also found that we were liable for 20% of the damages because we knew of the company's existence and nothing to address the potential brand confusion.

 

This little problem for us had suddenly become a huge one because this little guy had left a plethora of bad debts and had defaulted on several contracts and the ruling had opened us up for all sorts of claims. We went ballistic in terms of legal action and won on appeal from a higher court after spending close 100 times of initial claim in legal fees. You can imagine what my approach will be if I see any potential confusion with any brand that I manage and it would not be that different from Spez!

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Anyone remember the story of a guy name Mike Rowe who did some web desgin as a school kid under the name "Mike Rowe Soft"?

 

Big companies are compelled to protect their brands, but Specialized (like Microsoft and many other before) did not do it well, and in this case it seems it wasn't even technically their trademark to protect - so own goal.

 

Wouldn't stop me drooling over or buying their bikes though.

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Whilst I feel for the little guy in this scenario I can identify with the problem that Spez is facing from personal experience. Sometime back I worked for one of the major construction companies and a small contractor used a name very similar to the company I worked for. At the time we decided that the guy was so small that we wouldn't bother taking any action regarding the brand as clearly the consumer could not be confused between the two, a sort Goliath and midget comparison.

 

Boy, were we wrong. This small contractor undertook the construction of a private residence and went bankrupt before finishing the house. The owner decided to seek redress by suing us based on the fact that he was led to believe that he was contracting with a large company such as ours. Of course our defence was quite simple we were not the contractor and there was no legal nexus. We were quite surprised that the case even went to court and even more surprised at the outcome where the court found that the owner had to carry 80% of the liability for not checking whether he was indeed contracting with us. They also found that we were liable for 20% of the damages because we knew of the company's existence and nothing to address the potential brand confusion.

 

This little problem for us had suddenly become a huge one because this little guy had left a plethora of bad debts and had defaulted on several contracts and the ruling had opened us up for all sorts of claims. We went ballistic in terms of legal action and won on appeal from a higher court after spending close 100 times of initial claim in legal fees. You can imagine what my approach will be if I see any potential confusion with any brand that I manage and it would not be that different from Spez!

 

Theres a taxi I see regularly in the CT area that is branded Fox transport, complete with the fox tail straight off your fork. Obviously no brand/product confusion but a blatant trademark rip off nonetheless.

 

Your example is one of unfair competition. A court case to prevent the culprit from using the similar name would have been easily winnable.

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This thread is hurting Specialized big time. Since I started following it I have noticed at least 5 Spez products up for sale under the classified section.

 

Could we soon also see people getting rid of their Meridas. A Fuji owner wanting to upgrade can expect a increase in value and quick sale, so good on them.

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Maybe but doubt its a long term effect. What the fall out is in the USA will determine how much this hurts them

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This thread is hurting Specialized big time. Since I started following it I have noticed at least 5 Spez products up for sale under the classified section.

 

Could we soon also see people getting rid of their Meridas. A Fuji owner wanting to upgrade can expect a increase in value and quick sale, so good on them.

 

you have a correlation of spesh sales prior to this thread being created that proves your assertion above?? might interesting to see your correlation factor...

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Yes and yes.

 

But Specialized management are no fools. They can see that this issue is damaging their brand. To them this is a brand OTB. They will fix it. Look out for a press release from them early next week.

 

My final thoughts on this sage...

 

In the end the Specialized response was not what I would have wished for but Synyard actually did the right thing by extending an olive branch to Cafe Roubaix, even if his hand was forced by ASI. Kudos to him.

 

ASI came out of this smelling of roses and Specialized still smells of .... (You fill in the blank).

 

And Cafe Roubaix lives another day.

 

The secondary debate on the ownership of Specialized is puzzling to say the least. Why the need to obfuscate the truth?

 

The fact is that Sinyard is the majority owner with 51% and Merida a minority owner with 49% and Specialized bikes are built for them by Merida in Taiwan. So what?

 

Virtually all big brand bikes (Scott, Giant, Cannondale, Fuji and the list goes on) are built at least in part in Taiwan. Fact of life. And they are none the worse for it. Taiwan just happened to have claimed that corner of the market for themselves and they are very good at it. Ask all of the very happy riders of these Taiwanese built bikes.

 

Go in peace!

 

 

 

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Theres a taxi I see regularly in the CT area that is branded Fox transport, complete with the fox tail straight off your fork. Obviously no brand/product confusion but a blatant trademark rip off nonetheless.

 

Your example is one of unfair competition. A court case to prevent the culprit from using the similar name would have been easily winnable.

Agreed that we could have easily won the case was never a doubt but the effect of not taking action caught us totally off guard. The appeal case revolved around whether we were derelict in not resolving the issue. It is some time ago but if I recall the judgement found that our rationale of not taking action was reasonable and the onus was on the consumer to do his own diligence with the familiar term of caveat emptor mentioned more than once.

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Okay I lost interest halfway through this thread.

Has anyone seen or heard anything from Spez? Any official releases other than the Fuji guys wading in and trying to play hero?

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I'm quite glad that this thread, and the lawsuit in fact, exists... Why, just the other day, I went online to order a brand spanking new red, black and white Roubaix... You should have seen the surprise on my face when, at checkout, I'm presented with a huge bill for the Title Deed to some Cafe in Canada (I've never even been to Canada)! Apparently it's right above an ice cream shop (and boy, do I LOVE ice cream), but still a bit too hefty for my wallet and the missus would've taken my head off! Luckily, I got past the confusion and eventually ordered my Specialized Roubaix BICYCLE...

 

It's things like this that need to be stopped... Well done spez!

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