December 13, 2013 – Specialized Bicycles founder, Mike Sinyard, was recently in hot water regarding the company’s handling of a name dispute with a small bike shop, Café Roubaix, in Cochrane, Alberta (read Pedal‘s coverage of the story, including a video here). After finally settling the issue in person with Dan Richter, the shop owner, Sinyard posted an open letter on the Official Specialized Facebook page, apologizing for mishandling the situation. He went on to explain the motivation behind the overreaction stems from the increase of counterfeit Specialized product on the market and the safety issues that surround them… the Cochrane bike shop sells “Café Roubaix” branded carbon wheels, which Sinyard said were the “red flag.” Read Mike Sinyard’s open letter:
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.