Despite establishing itself as a globally recognised brand, Bangladesh’s recycled fibres company CYCLO is now facing a significant challenge from Swiss-based firm Cyclon.

The striking similarity in their names has created unfair competition in international markets, raising concerns over intellectual property rights.

At a press conference held at the Sheraton Hotel in Dhaka on Thursday, CYCLO’s Director, Mustafain Munir, addressed the issue.

“Sustainability in the fashion industry was not a priority for many. We founded CYCLO in 2014 with the vision of transforming garment waste into valuable fabrics. Over the years, we have built a strong global presence,” he remarked.

Munir continued, “Unfortunately, in 2021, a Swiss-based company introduced a brand with a nearly identical name, posing a serious threat to our market position and credibility. This undermines our efforts, particularly as a brand originating from a lower-income country.”

He further highlighted that CYCLO currently provides direct employment to more than 800 individuals, reinforcing its role as a key player in Bangladesh’s sustainable textile industry. He explained that traditionally, iconic brands have originated in Western countries, often facing imitation in regions where intellectual property is not sufficiently protected.

However, there are occasions when Western companies themselves disregard the intellectual property rights of entities from less developed regions, he pointed out.

He noted that Bangladesh has relatively few global brands, with CYCLO™ Recycled Fibres standing out as one of the first, if not the only, Bangladeshi-born brands displayed by global retailers. CYCLO™ was created by SIMCO Spinning & Textiles in 2014 as the first certified recycling facility for garment waste in Bangladesh, serving as a brand name for their recycled fibres and yarns.

The goal was to guide the bustling garment industry towards sustainable production and circular practices.

Since then, the CYCLO® brand has been trademarked and registered in over 20 countries, including Bangladesh, the EU, the USA, the UK, and Japan.

Munir stated that Swiss-based running shoe company ON AG is an emerging giant in the performance sportswear industry, capturing market share from established brands like Nike and Adidas, with an estimated market capitalisation exceeding US$20 billion.

In 2021, On launched a recycling programme called “Cyclon” as its “first step towards circularity” and shortly after, began attempts to limit, block, or cancel Bangladesh’s CYCLO™ brand name in key markets.