Specialized Bikes and their not so cool legal team

Christophe Noel

Expedition Leader
Interesting outcome. So, Mike Sinyard (founder of Specialized) flew all the way to Canada to meet with the owner of Cafe Roubaix to apologize for this mess. Having seen many of these events unfold in years past, I'm sure Mike is very, very, sorry. Sorry he got destroyed by the masses on social media.

It's going to take Mike quite some time to scrape off the tar and feathers from this one. Public apology or not.
 

p nut

butter
Well, here is the official word from Spec's Mike Sinyard. Lame excuse and I don't buy it for a minute. But hopefully, they will rethink their future tactics:

http://www.bikerumor.com/2013/12/12/mike-sinyards-open-letter-to-the-industry/#more-70873

"I Screwed up, and I own it

I would like to apologize and let everyone know I realize I handled this situation wrong from the start and I’m very sorry for that. As many of you have probably already seen by now, I went up to Café Roubaix to meet with Dan in person to apologize and make good with him. Café Roubaix will continue on with its name. The video is up on Café Roubaix’s Facebook page. Dan is the real deal, after meeting him I realize this and am embarrassed by how ridiculous this is. What happened was wrong. There are no excuses but I do feel like I owe it to you all to explain how we found ourselves in this situation, the lessons we’ve learned from it and, most importantly, how it will change the way we do things moving forward.

Over the past few years we’ve seen a massive spike in counterfeit products, and most of the riders have no idea these products are fake, which is extremely dangerous because the risk of failure on these untested products is extremely high. In one instance, the entire head tube and fork sheared off a counterfeit Tarmac, causing the rider who had no idea he was not on a genuine Specialized product to faceplant and destroy his shoulder. To give you an idea of how much this issue has blown up, 10 Specialized employees hunt fake products across 30 major ecommerce platforms, we’ve identified over 5,000 listings, worth $11,000,000 USD in counterfeit goods since January 1st of this year alone. This is about double what it was last year. Due to this we have recently gone after IP and trademark issues more aggressively in the interest of protecting the safety of riders and the livelihood of our dealers and their hard-working employees. See the attached picture to understand how dangerous fake goods are.

In the deal with Café Roubaix, the wheels were the red flag that got the attention of our outside attorney’s who were already sort of on red alert for anything that pops up, although Café Roubaix wasn’t in the same camp as the counterfeiters, they still got caught in the crossfire. There is so much activity with infringers that it’s overwhelming and I don’t see them all. The first I heard of it was Saturday morning and by Monday the thing went huge. But still, that was my fault, which is why I’m so embarrassed. I should have called Dan immediately.

I heard you and you can rest assured I took it to heart. I realize now that we went too far with this aggressive approach and as a result and in some cases we hurt the local bikes shops and small businesses we wanted to protect. As a result we’re going to take a much closer look at all pending and future intellectual property and trademark issues, making sure to only pursue those that present a clear and obvious danger. The letter on Epix Gear was issued before the Café Roubaix story broke and has since been pulled.

I handled this very poorly and I own full responsibility. Dan at Café Roubaix and I have become friends and he’s happy with the solution. I hope you too accept my sincere apology. Like you all, I’m passionate about cycling and want to do everything possible to grow the activity we all love.

Sincerely,

-Mike Sinyard
Founder"
 

Co-opski

Expedition Leader
Mike Sinyard said
Over the past few years we've seen a massive spike in counterfeit products, and most of the riders have no idea these products are fake, which is extremely dangerous because the risk of failure on these untested products is extremely high. In one instance, the entire head tube and fork sheared off a counterfeit Tarmac, causing the rider who had no idea he was not on a genuine Specialized product to faceplant and destroy his shoulder. To give you an idea of how much this issue has blown up, 10 Specialized employees hunt fake products across 30 major ecommerce platforms, we've identified over 5,000 listings, worth $11,000,000 USD in counterfeit goods since January 1st of this year alone. This is about double what it was last year. Due to this we have recently gone after IP and trademark issues more aggressively in the interest of protecting the safety of riders and the livelihood of our dealers and their hard-working employees. See the attached picture to understand how dangerous fake goods are.
I guess that is just part of business now in this global market when you take manufacturing to China, teach them to run factories and build carbon things. It only makes sense that they would make nock-offs with less quality control at a fraction of the cost when you are dealing with bikes that are topping 5 grand retail. Apple, Dolce & Gabbana, and Cuisinart all have the same problems but their legal team is not running around kicking little start-ups state side in the nards.
 

Christophe Noel

Expedition Leader
A likely story is: Somewhere in a swank attorney's office, a lowly legal aid has a series of Google Alerts set up to ping when Google finds any of the Specialized trade names. In this case, Roubaix. The legal assistant runs it up the flag pole, and a letter is dispatched. Sinyard is only alerted if trouble ensues.

Me thinks, in the future, they'll be a bit more careful which letters get dispatched.
 

southpier

Expedition Leader
I wonder if this letter gets S off the hook for busting the guy's chops? would he have a basis for a lawsuit?
 

Christophe Noel

Expedition Leader
Judging by the responses within the bike community, few are letting Mike Sinyard off so easily. It still doesn't offset the many other heavy handed slaps they've given to so many other people.
 

Co-opski

Expedition Leader
A likely story is: Somewhere in a swank attorney's office, a lowly legal aid has a series of Google Alerts set up to ping when Google finds any of the Specialized trade names. In this case, Roubaix. The legal assistant runs it up the flag pole, and a letter is dispatched. Sinyard is only alerted if trouble ensues.

Me thinks, in the future, they'll be a bit more careful which letters get dispatched.

I got a letter from a swanky attorney's office once just like that. I put out a public notice that a trail building non-profit was going to be doing some trail rehab and new construction on a mt biking trail. The contractor was going to be using a skid-steer that was named off of a short tailed North American wild cat, and the trail group listed that brand name in their development plan. I posted that plan in the public notice and the letter and comment I got from Bobcat, stated that I had to cease and desist with the use of their brand name. Lucky I only get to respond to relevant comments, theirs went into the trash.
They may have wanted to keep their name off of this list. Funny Dormobile is on that list. http://en.wikipedia.org/wiki/List_of_generic_and_genericized_trademarks
 
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Flagster

Expedition Leader
A needed apology but they were worried about the Cafe Roubaix wheels being confused with their Rovals?...
 

jscusmcvet

Explorer
Wait and see, right? Clearly Spec had a system in place for hunting down and going after abusers, and it ran amuck. Wonder how they are going to change the system? Is it going to stay with the "outside attorney" or is Spec going to bring it in house and have a personal hand in deciding when to go after a company or not.

Someone earlier in the thread mentioned defending the TM by charging a small fee and then maybe even helping the small company... Now that would be cool.

A person who founded a small company that grew into an international giant reaching out to help those who were following with their own business ideas and dreams... such as Sam Adams beer...

http://btad.samueladams.com/

Nice.
 

Judoka

Learning To Live
Best idea ever....BOYCOTT SPECIAL*Z3D!!! (note...did not use their name for fear of lawsuit :peepwall:)
 

T.Low

Expedition Leader
It is crappy but a common business practice. A gal here in town received the same treatment from Nautica on her Nauti Girl sailing coffee mugs and -shirts.

I've heard Special Ed as they're called around here, puts more $ into R & D than any other manufacturer. I've never owned one, just Konas and Felts in my quiver.

Personally, I got out of the paddle sport industry just about the time it was becoming an industry...Mad River Canoe had just hired an MBA from Harvard and we were to teach him how to paddle for the first time. It was all down hill from there.
 

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