Cyclo vs. Cyclon: When global giants threaten local innovation

Rules of civilization differ from the laws of nature, and this distinction is what propels humanity forward. However, progress is not without its challenges. The dominance of the strong over the weak, the rich over the poor, and the privileged over the underprivileged has long reflected our primitive instincts. This pattern is evident in the corporate world, where large multinational corporations frequently overshadow smaller enterprises—particularly those originating from developing nations.

A recent case exemplifies this imbalance. Swiss sportswear giant On AG, known for its high-performance running shoes and sports apparel, is apparently challenging Cyclo, a brand owned by Bangladesh-based Simco Spinning and Textile Ltd. On AG markets a product line called Cyclon, and despite arriving on the scene much later, it is now leveraging its financial and legal power to suppress Cyclo's presence in global markets.

In developed countries, it is standard practice to verify the existence of similar brand names before launching a new product. However, On AG seemingly overlooked—or dismissed—the presence of Cyclo, a well-established brand from a developing country, as insignificant.

Cyclo was launched in 2014 by Simco Spinning & Textile Ltd., the first certified garment waste recycling facility in Bangladesh. It has since grown into a pioneering name in sustainable textiles, producing recycled fibers and yarns. Over the years, Cyclo has been trademarked and registered in over 20 countries, including Bangladesh, the EU, the USA, the UK, and Japan.

Conversely, On AG introduced Cyclon in 2021 as part of its sustainability initiative, branding it as its "first step towards circularity." Shortly thereafter, On AG began efforts to block or cancel Cyclo's trademarks in key markets, despite the Bangladeshi brand’s prior existence and established global presence.

The similarities between the two brands go beyond their names. Both focus on circularity and recycling in the textile and apparel industry, making On AG’s actions appear more than coincidental. This situation has forced Simco to engage in a costly, multi-jurisdictional legal battle to defend its rightful use of the Cyclo name.

Despite numerous attempts by Cyclo to engage with On AG in constructive discussions, the Swiss corporation has remained unresponsive, underscoring a troubling disregard for the intellectual property rights of a pioneering Bangladeshi brand. This dismissive attitude highlights the structural power imbalance faced by smaller businesses from developing nations when competing in the global marketplace.

"We are left with no choice but to make public the challenges we are facing," said Simco's director, Mustafain Munir, in a press conference held yesterday, 30 January (Thursday). "We hope that by raising awareness, On AG and other global corporations will learn to respect the intellectual property rights of brands from less developed countries and support their growth rather than stifling them."

The Bangladesh Intellectual Property Forum has already voiced support for Cyclo, emphasizing the need for global businesses to respect trademarks and intellectual property originating from developing nations.

Bangladesh has relatively few internationally recognized brands, making Cyclo a rare exception. It is the first, and perhaps the only, Bangladeshi-born brand displayed by global retailers for its innovative recycled fibers. Over 40 international fashion brands, including H&M, Zara, Primark, Adidas, Nike, and Patagonia, currently source yarn from Cyclo. Notably, H&M is the largest buyer of Cyclo yarn, using it to produce sustainable clothing collections that are exported worldwide.

Simco began its journey in 2010 with just 50 workers and a monthly recycling capacity of 100 tonnes. Today, it employs 800 people and processes 15,000 tonnes of recycled fiber per month. The company has ambitious expansion plans, having recently developed recycled denim, which is set to enter the global market this year. Simco has also designed footwear and accessories under the Cyclo brand but faces resistance from On AG, which produces finished products under the Cyclon name.

At this critical juncture, Simco requires strong backing from organizations such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Government of Bangladesh, the media, and global supporters of fair trade and ethical business practices. The fight for Cyclo is not just about protecting a single brand—it is about upholding the intellectual property rights of businesses from developing nations and ensuring that economic power does not equate to legal impunity.

This battle between Cyclo and Cyclon is more than a trademark dispute; it is a symbol of the broader struggle faced by small, pioneering brands against corporate giants. If businesses from developing countries are to compete on a fair global stage, the world must take a stand against such corporate overreach and ensure that innovation and sustainability are not stifled by financial dominance.