Thursday, October 1, 2015

Investigations bicycle Kingdom gray industrial chain

Photo: Getty Images

Ken Avchen, now 58, was a United States cycling race of three-time champion, in 2015, he spent $ 70 on eBay from China and bought a Hylix brand "carbon fiber" bicycle handles, but planted a big somersault.

The time of the incident, Ken Avchen is riding to the South Mountain area of California a flat straight downhill, cycling speed is around 50-55km/h. Unprepared, the car broke his hand, Ken fell to the ground, neck, face and eye injuries, and lead to a concussion. Ken Avchen fell not because of obstacles or lose control of the bicycle, but in the "unknown" handlebars.

After the accident, Ken Avchen tries to investigate the origin of the handlebars and the incident. He found Hylix bicycle parts are sold on eBay, and is targeted at entry-level bike enthusiasts, however on the site but could not find more information about this brand. In addition, he also found that Hylix handles using the names of other high-end bicycle brand model, and shapes look the same.

The handlebars and sells for $ 70, less than other international brands like Zipp, Enve and 3T its similar product retail price one-third. However, Ken Avchen at the time of purchase is not suspicious, because in his view, Asia is a bicycle manufacturing centres in the world, has the world's most complex production processes, bicycle spare parts quality won't make much difference, nor expect to be life-threatening.

"I looked at the comments and evaluations were pretty good, so I bought it. Was like, even what accidents they should give me a new, or a refund. After all, it is bought on eBay. "Ken Avchen told United States specialized bicycle media interview with the Bicycling recalled.

Family advised Ken Avchen sued the cottage factories, but in the end he did not bring a case to court.

"Sue who? How to sue? Everyone can't prosecute, these guys in China. "Ken Avchen family said.

All kinds of fake high-end bicycles and bicycle parts have been circulated on the Chinese market. According to the survey of journalists, fake manufacturer to Taobao, aliexpress and dhgate for sales positions, tends to be a manufacturer or a few manufacturers to work together on the back, the gray industrial chain is already quite mature.

Specialized (lightning) and Cannondale (Dell cannon) as well as Trek (Drake) and called the United States the top three bicycle brands. Brand of lightning protector Tang Wei to screen journalists revealed that in the past year, lightning against a total sales volume of the company amounts to more than 15 million dollars in fake products. 7 months before 2015, lightning company in cooperation with Alibaba, Ali, were pulled from the shelves on its platform more than 5 million dollars in fake.

These fakes almost all of the sources in China. Become the fighting fortress of high-end bicycles, with China's "strong" bicycle related to production capacity.

80 's of last century, Tiananmen as a torrent-like wonder at the bike show, China was known as the "bicycle Kingdom". As cars become mainstream, the bike became a cultural symbol of the old stay lingering in people's minds. Has not been altered, is the absolute number and yield of Chinese bicycles in the world ranking.

About 15 years ago, European and American bikes manufacturers began to outsource production to Asia, especially China. Asia plays an important role in the global bicycle industry. 2012, Asia production bike of more than 120 million cars, 80% per cent of global production, production of electric bicycles 38 million vehicles, more than 95% of total global production. According to the statistics of the China bicycle Association, 2012 two-wheel bicycles in bicycle products in China totaled 59.125 million more cars; electric bicycles total 20.284 million more cars. In 2014, two-wheeled bicycles output figures into 83.05 million, major force is the bicycle industry in Asia.

However, "If you put all the production processes in China, people will know what color did you paint, bike model's name, they'll be a lot of copying, there is no secret at all. "Jan Kole said.

Jan Kole was the Netherlands, a professional race car driver. After the end of a career, Jan Kole began as a bicycle firm produces custom frames and set up his own bicycle brand Colossi. Starting from 2005, Jan Kole started in Shenzhen in the production of high-end handmade classical bicycle, and always insisted that all production processes must be completed in the factory of his own.

But basically, as long as people can buy authentic, the reverse operation, do some tweaks in the design, to the factory, mold, mass production of counterfeit products.

Jan Kole, factories engaged in "shanzhai" reasons vary. For example, some foreign brands canceled the order, these factories had to sell the stock market, but these products are not really fake products, but completely authentic. Another scenario is that some brands in order to waive costs of opening, will promise in the future to plant a big order, but cannot be achieved, the factory was forced to mold public, so many products on the market will be very similar.

But on the whole, almost does not exist in the bike world "trade secrets", inventor of the modern bicycle Han Dewei (David Hon), this deep experience.

Han Dewei is Chinese-American, was America's most famous aerospace company Hughes (Hughes Aircraft) engaged in development work, in the 80 's of last century, invented the first modern folding bike, and in the United States built a large line (Dahon) folding bike brand, then in the mid-80 set up a research and production base in Taiwan.

Early 90 's, several internal staff and external persons secretly reached an agreement, decided to start producing similar products, when you leave the line, and the staff took away a lot of the core technology and trade secrets. Han Dewei litigation experienced losing appeal, and finally through the United States Department of Commerce to put pressure on Taiwan's Government will be the former employee convicted, the former employee was sentenced to 5 months ' imprisonment.

But that has not stopped China's factories "shanzhai" products. According to Han Dewei observation, Dahon bicycle market a year later, there will appear the appearance and functions almost exactly the same product, but most of them register their own brand. Some manufacturers in order to avoid accountability, tend to make some changes in appearance, but if you use the same mechanism, it is difficult to remove fake "hat".

Run a bicycle business in Shenzhen Huang Jie (not his real name) just visited had not authorized the production of fake plants. On the factory floor, workers have cut aluminum in cutting area, put into a pile, others were welded, welded steel frame hanging like a sausage, and then painted and assembled, the whole process and formal factory assembly line work is not much of a difference.

Some small cottage operations is not the only do it yourself, often at the factory after the prototype frame cottage, let the paint work on other manufacturers to form a system. Some simply do not have their own products, just buying cheaper parts from different manufacturers, workers again assembled, affixed their brand or to impersonate others brands.

"Shanzhai factory is an engineer from the line, so production of folding bikes are similar to big, but the price difference is not large, slightly below the line. Model, color and even the shape of the logo is also similar, but the quality will be biased, shanzhai products folding up to line level. "Interface Huang Jie told journalists.

In General, large regular bike manufacturers like line, for executives and senior technical staff to sign confidentiality and trade agreement, in case they are the company's core technology leaked to competitors or their own. But the fact is, the agreement failed to constrain the behaviour of individuals, bicycle enterprises between poaching remains a serious problem.

"When competitors offer better salaries, and technical employees tend to stay on the job, even when some people working in the same company, went to provide competitors with technical advisory services. "Han Dewei said.

Typically, big 2-3 years after the company's technical staff will have other companies to hire, in order to deal with the problem, had been forced to move part of r to Taiwan.

Plagiarism there is another reason, many counterfeiters has for the brand's background before, so have the relevant technical and production process over time becomes transcendent. This means that counterfeiters were able in a short period of time to produce more similar products with authentic, further lower the threshold of fraud.

One unwilling to named of industry people told interface journalists, currently China cottage bike producers main in coastal port city throughout, formed a huge of "cottage Kingdom", inland city relative less production cottage bike of manufacturers, cottage manufacturers main concentrated Yu Shenzhen, and Tianjin, and Xiamen, and Huizhou, coastal city, because these city has mature of production technology, and near Harbour, which especially to in Shenzhen mostly.

"In the past imports of bicycle parts Shenzhen Terminal trouble, Bicycle accessories are imported by Tianjin destined for national, many goods from Shenzhen port in copycat bike more up. "These people say, fake bicycle manufacturers more focused urban strengths. More fortress in Tianjin bicycle parts, Xiamen production raw materials, due to plant cheap rent in Huizhou, mainly to assemble vehicles, but also the production of carbon fiber frames; Shenzhen, are complete in every respect.

Bicycle production industry chain, the most concentrated are Jiangsu, Tianjin, Zhejiang, Henan, Guangdong and other provinces. According to data released by the China National light industry information center and the China bicycle Association, January 2015 May, national bike industry today completed the main business income of 53.363 billion yuan, an increase of 4.85%. 5 provinces in the proportion accounted for by 73.78% above.

2015 across Guangdong, Tianjin and Hebei province occurred three extra fake bicycle trademark case, perhaps in line with the above chain region characteristic.

In April, Huiyang district, Huizhou city, Guangdong Province, the police found a sale on line "giant" brand shops compared exception. Economic investigation team, Huiyang District Public Security Bureau Economic Investigation Brigade based on the analysis of information systems analysis, combing out Huizhou and Shenzhen, Dongguan and other places of sales of bicycles related anomalies found through troubleshooting: in long lake view town, Huiyang district, Huizhou city, neighborhood across from the post office suspected of Assembly processing and the sale of fake giant brand of bike crime and may be sold to other provinces and outside the city.

Touched on the ground to check the project and go to Taobao, Hangzhou headquarters data, identify fidelity mountains, crosses the mountain's actual operator for Deng Lingying, person in the town, Huiyang district, Huizhou city, long view Lake District across from the post office warehouses for dens and found in Shenzhen underground dens a factory. Finance new and official PMI index record low

On June 9, the project in Hebei, Tianjin, Shenzhen, Huizhou, net and arrested 42 suspects, seized dens 8 and seized bogus "giant" bike finished and semi-finished products large, value involved more than 20 million Yuan.

"Fake bikes like this case, now depends mainly on the regular bike manufacturers initiative report joint manufacturer case to the police. "The Huizhou Public Security Bureau publicity Bureau Chief Chen Xiaojin reporters on the interface. Many parts of the country have formed a bicycle chain of gray industry, currently uncovered counterfeit case is just tip of the iceberg.

Interface news reporter visited Shenzhen longhua several sales of domestic bicycle shop, find a lot of shops have "BMW" and "Ferrari" and other high-end auto brand bike for sale, priced at RMB 400 to 1500 Yuan mostly. When a reporter asked about the car, and many store owners reluctant to answer, from Shenzhen was also expressed. When reporters questioned whether the cottage when store owner asks: "How would ask people who want to buy? "

In fact, the majority of fake bicycle manufacturers in order to avoid statutory regulation, often producing counterfeit foreign brand of high-end bicycles, will not be directly printed on the brand's trademark, but a "live in a separate House", a trademark registered in China and then in the stronghold on the car, but production bike and is the stronghold of the bike is almost 1:1 proportions.

Mr Tang told interface for journalists, "China's shanzhai bike followed by all major brands of car models, in addition to direct imitation, due to the big name manufacturers in recent years the fight against infringement, partially changed tactics. Very few do their cars. "

Domestic reason why there are so many bicycle manufacturers to produce fake bike, or because the cost of producing copycat car is low and profits are high, from production to distribution exists for each part of "profiteering". Especially now popular carbon fiber bicycle for the shanzhai factory is the production of carbon fiber frames, the most profitable.

Carbon fiber is lighter than aluminum, but the hard material than steel, has in recent years been used in high-end bicycles and car body. For the counterfeiter, carbon fiber can be a perfect material, because the shapes of carbon cloth need one layer at a time around the entire frame, compared to metal, making easier.

"Not familiar with the details of the authenticity of the consumers is hard to distinguish with the naked eye, the difference between true and false lies mainly in the carbon-fiber materials, workmanship and design details, which requires specialized laboratories to detect. "Mr Tang said.

Talk about domestic fortress bicycle, Shenzhen Baoan xinan dongdong Zheng Dongpeng bike firm operators seem helpless, he operates mainly in the "road CASS" and other brands. The past two years, more distant domestic bicycle market, while fake bicycles flooding the market, his business was affected, every half month turnover has dropped to two or three years ago.

Zheng Dongpeng told interface journalists, genuine carbon fiber frames are generally a seven thousand or eight thousand Yuan, weighing 1000 g 1200 g, fake carbon-fibre frame weighing 1700 g 1800 g, production of carbon fiber raw materials are mainly used in Xiamen, industry insiders called "Xiamen carbon", about 500 Yuan a catty, so cheap carbon fiber frames one thousand or two thousand Yuan on the Internet you can buy.

If the cottage bikes are made with aluminum, manufacturing costs are lower. Zheng Dongpeng refers to with a car purchase price for 1600 Yuan of "beauty Lee up" bike said, this paragraph car of frame is aluminum material of, cottage this paragraph car of frame cost minimum only need seventy or eighty Yuan, Qian fork find some cheap of generation factory production of products, round group and rims also can imitation, again loaded a compared cheap of transmission, a car cottage car cost only need 200 around, purchase price for 500 Yuan, sold out is can sold to 800 Yuan.

With the development of e-commerce technology produces bikes using the Internet to sell faster. Due to the lucrative production and sale of fake bikes and no regular factory promotion expenditures, counterfeiters in droves, and via the Internet, sales territory beyond the Chinese throughout the world.

In September this year, Flash bike brand protection and investigation department head Andrew Love said in an interview with the Cycling bicycle media, his contacts in the fortress, 95% are from China's Internet platform, including dhgate, cross-border e-commerce site Alibaba Aliexpress (aliexpress) as well as Taobao.

Lightning company beginning in 2007 for match-fixing, anti-counterfeiting team currently has the largest number of bicycle industry in foreign countries, about 10 persons, responsible for the rights of all countries and markets.

"Generally have a small factory behind the shop, main frame, shanzhai secretly got from big brands hand drawings or frame template. "Shenzhen bicycle industry Association Secretary-General Wang Yiping journalists told interface.

False chain including upstream manufacturers, traders in middle and downstream of a single seller. Around the development of e-commerce to contact manufacturers directly to consumers. Some bold the shanzhai players and even got his own website to sell products directly, but more often is that manufacturers are responsible for the production, a single seller is responsible for online sales, brokering role was slowly fading.

Bicycle producing fake genuine bike constitutes infringement, and pose a threat to the personal safety of cyclists, on laws in China, producing fake products is unlawful. The tort liability law, consumer protection law and other laws and regulations on e-commerce platform assigned to businesses "fake" liability expressly required.

The 36th article of the tort liability Act stipulates that Internet users use the network services committed acts of infringement, infringed the right to notify Internet service providers take delete, shielding, broken links and other measures as may be necessary. Internet service providers did not take necessary measures in a timely manner after receiving notice of the damage expanding part of joint and several liability with the network users.

In addition, in article 44th of the Consumer Protection Act also provides for the protection of consumers ' rights, Internet trading platform provider knows or should know sellers or service providers to use its platform against the legitimate interests of consumers, failed to take the necessary measures, joint and several liability with the sellers or service providers in accordance with law.

However, in reality, bike brands against counterfeiting counterfeiting is not an easy thing.

"Line the main sources of fraud, but cost up to tens of thousands of hundreds of thousands of, and long time, we are conducting a survey it took only a few months has not been completed, results are also expected. "Mr Tang quite helpless, as long as there is a profit, someone will risk danger in desperation, now apart from online combat, very few success stories.

A recent decision which bike brand abroad felt a little relief.

Under the Bicycle Retailer of bicycles media report on September 15, Giro helmet brand and Bell's parent company, BRG Sports told the outside world, a Chinese citizen for Taobao and offline stores in unauthorized sales of more than 350,000 yuan worth of bicycle and parts, including Giro helmets, giant, Merida, bikes, was jailed for nearly three years.

The development of the mobile Internet, bringing great convenience to socio-economic and also pose greater challenges for match-fixing. Shopping APP makes traditional techniques cannot identify the client's content. Predicted against the stronghold of the main battlefield of the future will be on social networking tools like Facebook, because on these platforms, trade is more covert.

If fakes are found on the website, usually to a complaint seeking to delete a link, it has the advantage of low cost, easy to operate, to a certain extent the sale more difficult, but the symptom, not the cause. In many cases, the regular factory-prepared materials can prove to the platform when merchants selling fake goods, these people have already moved to another platform to continue selling fake goods.

"We have close cooperation with Taobao, Taobao will remove links immediately on receipt of our complaints and punish the sellers. But fake profits when some stubborn seller repeatedly sells off. In addition, due to the size of Taobao, would attract new sellers don't understand intellectual property rights have been used to help sell fake. "Mr Tang said.

Lightning company and Ali to fight fakes of nearly 5 years of cooperation. Online, the Lightning has been Ali's good faith cooperation partners eligible, namely: low complaints, shorter processing time and one-on-one counselling. Below the line, the lightning is cooperating and Ali, use offline data at its disposal.

"Fraud and other crime are difficult to eradicate, it is a long-term job. "Mr Tang said.

In addition, domestic legislation had not been perfect, "shanzhai" bicycles are not many examples of relevant departments to combat. In China, many "shanzhai" still between infringing and non-infringing of the twilight zone. In accordance with the law, protection of intellectual property rights is affected by the country or region, if a technology is not in applications for intellectual property rights protection in China, was in the country "Cottage", may constitute an infringement.

China University intellectual property law research center special researcher Li Junhui said foreign brand bike companies to maintain intellectual property rights in China, as long as needed to complete the relevant application and protection of intellectual property rights in China. From the time perspective, approval takes at least 1 year of a registered trademark, patent under the patent type, take 6 months to 3 years, is also time for defenders.

"From the evidence of infringement found infringing products to obtain the appropriate evidence, itself needs to take. Overall, intellectual property rights protection takes a more human, material and financial resources. "Li Junhui said these reasons led to the foreign enterprise greatly increased the difficulty of protecting intellectual property rights in the country.

So, where domestic fight against faux-bike outlet?

Said Li Junhui, counterfeiters making shanzhai bike mainly because of the infringing goods are profitable, but piracy has rarely been investigated in a timely manner, resulting in illegal low cost or risk, and ongoing phishing abuses.

Li Junhui believes that China's legal system has been improved, the most important thing is whether enterprises are registered in China, trademarks and patents for advanced layout, whether to take the initiative to collect suspected fraud information and timely communication and higher authorities. But he stressed that, "another key issue is the enforcement of scale, whether law-enforcement departments to meet their obligations. "

Han Dewei also proposes many solutions: improve the protection of intellectual property rights laws, strengthen penalties, strict law enforcement, enhance anti-corruption, strengthen supervision of law enforcement, will be incorporated into the official evaluation system of intellectual property protection, and so on.

"After more than 20 years of development, Taiwan's protection of intellectual property rights is doing very well now, enterprises will not copy to copy to, before poaching will cease to exist, with patent protection, even poaching someone else designed, others can't do the same. "Han Dewei said.

Taiwan is the world's manufacturing base of high-end bicycles, almost 90% above the high end of the world or even top bike brands from Taiwan. Taiwan bike price was about $ 400, mainland-produced bicycles price for only $ 80.

"It turns out, if the strict protection of the intellectual property rights in an industry when the industry will take off. "Han Dewei said.

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