16 May Wall Street Journal Features DAHON in Counterfeit Article
DAHON CEO Dr. David Hon discusses the growing problem of counterfeit products with the Wall Street Journal
Duarte, California May 2, 2014 – In a story this week in the Wall Street Journal on counterfeit products, leading folding bike manufacturer DAHON was among a group of major brands mentioned who are dealing with the growing threat to legitimate businesses from counterfeiters. The companies mentioned are utilizing their resources to combat this threat, with DAHON representing the bike industry. A particular problem is with online market place, Taobao, where up to half of the bikes sold are either non DAHON products, branded with the company logo, or are guilty of copyright infringement.
Dr. Hon explains in the article how the number of fake DAHON’s on the online market place has risen 10 – 20 fold in the last two years, resulting in increased spending on fraud-fighting measures equal to $200,000 and the employment of four members of full time staff to deal with the issue.
Complaints made against Taobao, run by by Chinese e-commerce giant Alibaba, result in slow action, according to Dr. Hon. He goes on to state that any sellers removed from the site are back again within a matter of months, once again selling counterfeit products.
DAHON has been instrumental in the fight against counterfeit products in China. As one of the first western brands to enter the Chinese bicycle market, the company became a target for counterfeiting and piracy. Last year DAHON won a high court ruling in China against Wal-Mart Shenzhen Stores, Inc., a joint venture of Wal-Mart China and a Shenzhen-based corporation, for intellectual property violations. The store was unknowingly infringing upon DAHON’s IPR by selling branded bicycles that were in actuality not designed or manufactured by DAHON. This highlights the prevalence and ease with which counterfeits can enter the market and the need for vigilance.
Dr. Hon commented that “many of our patents are so widely copied that some merchants commit mistakes inadvertently. However, as an industry leader, we owe it to our partners to protect the integrity of our brand and to ensure the safety of our consumers. This is a battle that we have been fighting for a long time and we are pleased to see that things seem to be moving in the right direction.”
Every authentic DAHON bicycle comes with a serialized 3D holographic label that can be validated on DAHON’s online authentication system at www.dahon.com.
In 1982, DAHON ignited the folding bicycle revolution with the introduction of the DAHON Folder, the forefather of most modern-day folding bicycles. Today, DAHON is recognized as the world leader in folding bicycles. Spearheaded by the guiding principles of innovation, reinvention and technological leadership, DAHON is committed to creating quality products, a unique riding experience and green mobility solutions for people leading active, environmentally friendly lifestyles. Headquartered in California, DAHON’s offices, factories, cooperating assembly plants and distributing partner network reaches around the world. For more information regarding DAHON’s products, please visit dahon.com.