CYCLO Recycled Fibers, a pioneering Bangladeshi brand in the recycled fibers sector, has raised concerns over alleged unethical practices by Swiss sportswear giant ON AG. The company claims that ON AG is attempting to limit CYCLO’s market presence, jeopardising its future unless its intellectual property rights are adequately protected.
Mustafain Munir, director of CYCLO Recycled Fibers, made the allegations during a press conference held in Dhaka. He emphasised that CYCLO is the only Bangladeshi-born brand competing with global players in the recycled fibers industry, collaborating with numerous international retailers.
“Building a globally recognised and respected brand requires years of dedication, substantial investment, and an unwavering commitment to delivering on promises,” Munir stated. He pointed out that iconic brands have predominantly emerged from Western countries and often face imitation in regions where intellectual property laws are inadequately enforced. “There are cases where Western companies disregard the intellectual property rights of brands from less developed nations,” he added.
Founded in 2014 by SIMCO Spinning & Textiles, CYCLO was established as Bangladesh’s first certified recycling facility for garment waste, aiming to promote sustainable production and circular practices in the garment industry. Since its inception, CYCLO has been trademarked and registered in over 20 countries, including the EU, USA, UK, and Japan.
ON AG, known for its performance sportswear and with a market capitalisation exceeding US $ 20 billion, launched its own recycling initiative, “Cyclon,” around 2021. Following this, ON AG reportedly began efforts to restrict CYCLO’s use of its brand name in key markets, according to Munir.
The similarities between the two brand names, coupled with their shared commitment to circularity and recycling, have compelled SIMCO to defend its rights to the CYCLO brand name in multiple jurisdictions. Despite being a pioneer with established first use, CYCLO has found itself embroiled in costly and protracted legal battles, as noted by Barrister ABM Hamidul Misbah, legal counsel for CYCLO.
Munir expressed frustration over ON AG’s management’s lack of response to CYCLO’s attempts to engage in dialogue and reach a resolution. He described this dismissive attitude as indicative of the broader power imbalances faced by smaller companies from developing nations on the global stage.
“CYCLO is compelled to publicly address the challenges it faces and raise awareness both locally and internationally about how larger brands sometimes seek to infringe upon the rights of smaller brands from developing countries,” Munir stated. He hopes this will encourage ON AG and other global brands to respect the intellectual property rights of companies from less developed nations.
CYCLO currently recycles approximately 50 million tonnes of garment waste annually. The company’s annual yarn export value stands at US $ 15 million, contributing to the production of around 16.5 million garments, with a Free on Board (FOB) value exceeding US $ 130 million in the country’s apparel export earnings, according to Munir.
He also highlighted that CYCLO has invested over US $ 20 million in its operations since 2010, establishing the first recycling spinning mill under a joint venture project primarily owned by local stakeholders. This initiative has created jobs for over 800 individuals, underscoring CYCLO’s commitment to sustainable practices and local economic development.
