A Bangladeshi brand owner in recycled yarn is seeking a resolution to an intellectual property dispute with a Swiss brand, as both companies are creating confusion in international markets due to their nearly identical names.

Simco, a Bhaluka-based recycled yarn-producing spinning mill in Bangladesh, manufactures yarn under the brand name Cyclo and supplies it to apparel manufacturers and exporters.

As per product traceability rules, the brand name Cyclo is written on the hangtags of apparel made from Cyclo-branded recycled yarn, which is then exported to European and American retailers and brands.

The intellectual property rights for Cyclo were registered in Singapore in 2014.

However, another brand, ON, based in Switzerland, registered its apparel brand as Cyclon in Switzerland in 2021 and has been marketing its products under this name, said Rayhan Kabir, manager for process optimization of Simco, at a press conference at the Sheraton Hotel in Dhaka yesterday.

ON sells apparel and shoes under the Cyclon brand, he said.

He added that he has been communicating with the Swiss company for the last two years to resolve the issue amicably, as consumers often get confused due to the similarity in brand names.

Cyclo was created by Simco Spinning & Textiles in 2014 as the first certified recycling facility for garment waste in Bangladesh.

It was established as a brand name for their recycled fibers and yarns with the goal of guiding the bustling garment industry towards sustainable production and circular practices.

Since then, the Cyclo brand has been trademarked and registered in over 20 countries, starting from Bangladesh and expanding to the EU, USA, UK, and Japan.

Swiss-based running shoe company ON is an emerging giant in the performance sportswear industry, capturing market share from established brands like Nike and Adidas, with an estimated market capitalisation exceeding $20 billion.

Around 2021, ON launched a recycling programme called "Cyclon" as its "first step towards circularity" and shortly afterward, began attempts to limit the use of, block, or cancel Bangladesh's Cyclo brand name in key markets.

Similarities not only in the name but also in the field of circularity and recycling in the apparel sector have forced Simco to defend its right to use Cyclo across multiple jurisdictions and classifications, despite being a pioneer in the field and having well-established first use.

Despite numerous attempts by Simco to engage with ON's management and reach an amicable resolution, their efforts were met with resounding silence, he said, adding that this dismissive attitude underscores a troubling disregard for the intellectual property rights of a pioneering Bangladeshi brand.

This highlights the power imbalances that smaller companies from developing nations face on the global stage.

ON was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement—a mission that still guides the brand today.

Fifteen years after its market launch, ON delivers industry-disrupting innovation in premium footwear, apparel, and accessories for high-performance running, outdoor activities, training, all-day wear, and tennis, according to the company's website.