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Wall Street Journal Features Dahon in Counterfeit Report

Sales & Trends

DUARTE, USA – In a story last week in the Wall Street Journal on counterfeit products, folding bike manufacturer Dahon was among a group of major brands mentioned who are dealing with the growing threat to legitimate businesses from counterfeiters.

Wall Street Journal Features Dahon in Counterfeit Report
“The number of fake Dahon’s on the online market place has risen 10 – 20 fold in the last two years,” told Dr. Hon in a Wall Street Journal report. - Photo Bike Europe

The companies mentioned are utilizing their resources to combat this threat. Dahon has a particular problem with the online market place, Taobao. According to Dahon CEO Dr. David Hon: “Up to half of the bikes sold on Taobao are either non Dahon products, branded with the company logo, or are guilty of copyright infringement.”

“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,” explains Dr. Hon.

“Complaints made against Taobao, run by Chinese e-commerce giant Alibaba, result in slow action. Any sellers removed from the site are back again within a matter of months, once again selling counterfeit products.”

Wal-Mart Shenzhen Stores

For the Wall Street Journal, 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.

‘Protect the integrity of our brand’

“This case highlights the prevalence and ease with which counterfeits can enter the market and the need for vigilance,” says Dr. Hon. “Many of our patents are so widely copied that some merchants commit mistakes inadvertently. However 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.

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