Bangladeshi brand CYCLO says it facing unethical challenge from Swiss giant ON AG

A Bangladeshi brand, CYCLO Recycled Fibers, says it is facing unethical challenges from Swiss sportswear giant ON AG, potentially jeopardising its position in the international market. 

CYCLO alleges ON AG is attempting to restrict its market reach, threatening its future unless its intellectual property rights are protected.

Mustafain Munir, director of CYCLO Recycled Fibers, made the claims at a press conference in Dhaka today. 

CYCLO, the only Bangladeshi-born brand competing with global players in the recycled fibres sector, works with numerous international retailers, he said.

Munir said establishing a globally recognised and respected brand requires years of effort, significant investment, and unwavering commitment to delivering on promises. 

He noted that iconic brands have traditionally originated in Western countries, often facing imitation in regions where intellectual property laws are insufficiently enforced. "However, there are instances where Western companies themselves disregard the intellectual property rights of brands from less developed nations." 

CYCLO was created by SIMCO Spinning & Textiles in 2014 as a brand for recycled fibres and yarns. It became Bangladesh's first certified recycling facility for garment waste, aiming to guide the garment industry towards sustainable production and circular practices. 

Since its inception, CYCLO has been trademarked and registered in over 20 countries, including the EU, the USA, the UK and Japan. 

ON AG, a rising force in performance sportswear with a market capitalisation exceeding $20 billion, launched its own recycling programme, "Cyclon," around 2021. Shortly afterwards, ON AG began attempts to limit or block CYCLO's brand name use in key markets, Munir said.

The similarities in the names and, more critically, the shared focus on circularity and recycling in the apparel sector have compelled SIMCO to defend its rights to use the CYCLO brand name across multiple jurisdictions. 

Despite being a pioneer in the field with established first use, SIMCO has been forced into costly and time-consuming legal battles, said Barrister ABM Hamidul Misbah, lawyer of CYCLO.

Numerous attempts by CYCLO to engage with ON AG's management and reach an amicable resolution have been met with silence, he said. 

This dismissive attitude underscores a troubling disregard for the intellectual property rights of a pioneering Bangladeshi brand, highlighting the power imbalances smaller companies from developing nations face on the global stage, he added.

"CYCLO is left with no choice but to make public this challenge they are facing and build awareness both locally and internationally that large international brands sometimes seek to override the rights of smaller brands from developing countries," said Munir.

"We hope that by doing so, ON AG and other global brands will respect the intellectual property rights of brands from less developed countries," he added.

Munir told TBS that the company recycles about 50 million tonnes of garment waste every year. 

The company's annual yarn export value is $15 million, which is used to produce approximately 16.5 million pieces of garments whose end products' FOB (Free on Board) value contributes over $130 million to the country's apparel export earnings, he said. 

The entrepreneur also mentioned that they have been investing since 2010 in the plant as the first recycling spinning mill under a joint venture project, which is majority shares owned by local stakeholders. 

The total investment for the project stands at over $20 million and has created jobs for more than 800 people.