A Bangladeshi recycled yarn producer, Simco, is seeking a resolution to an intellectual property dispute with Swiss sportswear brand ON over the similarity between their brand names, which has led to confusion in international markets.

Simco, a Bhaluka-based spinning mill, produces recycled yarn under the brand name Cyclo, supplying apparel manufacturers worldwide. Established in 2014, the brand is trademarked in over 20 countries, including Bangladesh, the EU, the USA, and Japan.

However, Swiss company ON launched its Cyclon apparel brand in 2021 and has since attempted to restrict the use of Cyclo in key markets, according to Rayhan Kabir, Simco’s process optimization manager.

Speaking at a press conference in Dhaka, he said ON markets apparel and shoes under the Cyclon name, leading to confusion.

Kabir stated that he has been in discussions with ON for two years to resolve the issue amicably. Cyclo’s branding appears on apparel hangtags for traceability, making distinct market identities crucial.

ON, an emerging player in performance sportswear with a market capitalization exceeding $20 billion, introduced the Cyclon brand as part of its sustainability efforts. Simco, meanwhile, pioneered certified recycling in Bangladesh’s garment sector, aiming to promote circular production practices.