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-   -   Is Specialized a Bully? (https://www.bikeforums.net/road-cycling/790801-specialized-bully.html)

himespau 01-06-12 04:13 PM


Originally Posted by noise boy (Post 13685894)
Unless they acted on their idea before the left Specialized's employment, then they are fine, non-competes and non-disclosures do not mean that the company owns you and your ideas.

except most of us have signed IP rights documents (in addition to or instead of noncompetes) that say any idea we have while in their employ no matter the time of day or where we are when we have this idea belongs to them. BS, but I've had to sign 3 of them at my last 3 jobs to get the job. A lot of people get them confused with a noncompete, but they're a different beast altogether. In my job it didn't even say "related to my work" that a lot of people's IP agreements say.

rangerdavid 01-06-12 04:13 PM

with the black and red, I guess they'll be sueing Michael Jordan next....

SortaGrey 01-06-12 04:17 PM


Originally Posted by noise boy (Post 13685894)
Unless they acted on their idea before the left Specialized's employment, then they are fine, non-competes and non-disclosures do not mean that the company owns you and your ideas.

Tell that to Special'zd's LAWYERS.

In a perfect world I agree with you... which of course never existed.

gregf83 01-06-12 04:19 PM

Their new bike looks an awful lot like a specialized bike. If they didn't take anything from Specialized why design a bike that looks incredibly similar to your previous employer's bikes? Looks like they were asking for trouble.

laserfj 01-06-12 04:21 PM


Originally Posted by noise boy (Post 13685894)
Unless they acted on their idea before the left Specialized's employment, then they are fine, non-competes and non-disclosures do not mean that the company owns you and your ideas.

Non-compete means you can't compete. If they signed one and they are trying to sell bikes within the term of their non-compete, they are in violation of it...

rangerdavid 01-06-12 04:23 PM

..... and they said Specialized has spend a Million and a Half Dollars on legal fees "so far" ....... WTF!!!




Do you know how many bikes I could buy with a client like that!!!! Crap, I'd only need one client, and several S-Works in different colors in addition with my fees.

jdon 01-06-12 04:23 PM


Originally Posted by rangerdavid (Post 13685919)
with the black and red, I guess they'll be sueing Michael Jordan next....

No, he lacks white.

rangerdavid 01-06-12 04:25 PM


Originally Posted by laserfj (Post 13685965)
Non-compete means you can't compete. If they signed one and they are trying to sell bikes within the term of their non-compete, they are in violation of it...

not necessairly. the non-compete clause has to be "reasonable as to time and geographical location", meaning the restriction on length of time, and it must specify a geographical area that they cannot compete in. That too must be reasonable. Lots more technical aspects of the enforcement of non-competes, but those are some basics.

in other words, it can't say "you cant ever sell bikes in the USA". But it may say "you can't sell bikes in Texas for 2 years", or something like that.

noise boy 01-06-12 04:35 PM


Originally Posted by rangerdavid (Post 13685984)
not necessairly. the non-compete clause has to be "reasonable as to time and geographical location", meaning the restriction on length of time, and it must specify a geographical area that they cannot compete in. That too must be reasonable. Lots more technical aspects of the enforcement of non-competes, but those are some basics.

in other words, it can't say "you cant ever sell bikes in the USA". But it may say "you can't sell bikes in Texas for 2 years", or something like that.

Further, since I am under one for my work, it doesn't mean that I can't sell bikes, it means that I can't sell bikes to retailers who are already selling Specialized products. Anybody who Specialized doesn't have an existing agreement with is fair game.

noise boy 01-06-12 04:44 PM


Originally Posted by himespau (Post 13685916)
except most of us have signed IP rights documents (in addition to or instead of noncompetes) that say any idea we have while in their employ no matter the time of day or where we are when we have this idea belongs to them. BS, but I've had to sign 3 of them at my last 3 jobs to get the job. A lot of people get them confused with a noncompete, but they're a different beast altogether. In my job it didn't even say "related to my work" that a lot of people's IP agreements say.

Broad based assumption, nowhere is it specified that the two signed any agreements whatsoever with Specialized. Further the basis for the lawsuit is that they stole Specialized trade secrets, not that they violated any agreement.

NathanC 01-06-12 04:46 PM


Originally Posted by gregf83 (Post 13685956)
Their new bike looks an awful lot like a specialized bike. If they didn't take anything from Specialized why design a bike that looks incredibly similar to your previous employer's bikes? Looks like they were asking for trouble.


Similar? These are about as similar as the Roubaix is to any other road bike.

http://www.primera-sports.com/system..._800_False.png
http://www.freerider.ro/wp-content/u...iscio_2012.jpg

DinoShepherd 01-06-12 04:52 PM


Originally Posted by rangerdavid (Post 13685697)
Mitt Romney said corporations are people. I'll believe it when Rick Perry executes one in Texas.

Or when Obama bows to one.

Oh wait.

gundom66 01-06-12 04:55 PM


Originally Posted by gregf83 (Post 13685956)
Their new bike looks an awful lot like a specialized bike. If they didn't take anything from Specialized why design a bike that looks incredibly similar to your previous employer's bikes? Looks like they were asking for trouble.

Judging from the side by side found in this link, the only difference is the seat stay and fork. If Specialized is referring to their "Cobra" Top Tube (I know it's cobra "something"), it does look similar from that picture. However, looking at the Liscio up close, it doesn't have that Cobra-shaped Top Tube. Maybe Specialized is really referring to the "base" design which is the Roubaix, and Volagi went back to the drawing board and came up with a better looking Seat Stay because that Zertz crap is freakin' ugly. Sorry Roubaix owners, but this is just my personal opinion. Maybe Specialized is a bit jealous that a better design without the use of them inserts can perform just as well as their Roubaix which may have triggered the lawsuit. :p

Anyway, there is a posting in Volagi's Facebook page about one evil-doing they did... and according to them, it has been reversed.

NathanC 01-06-12 05:00 PM

http://www.bikerumor.com/wp-content/...agi-cycles.jpg

Jed19 01-06-12 05:02 PM


Originally Posted by rangerdavid (Post 13685973)
..... and they said Specialized has spend a Million and a Half Dollars on legal fees "so far" ....... WTF!!!

Now you know why the Venge is so expensive:rolleyes:

gregf83 01-06-12 05:06 PM


Originally Posted by NathanC (Post 13686069)
Similar? These are about as similar as the Roubaix is to any other road bike.

How many bikes have a curved top tube like Specialized? They look similar to me.

mollusk 01-06-12 05:07 PM


Originally Posted by Velo Vol (Post 13685148)
Bully? A corporation is not a person, despite what the Supreme Court says.

I'm waiting for Texas to execute a corporation

danvuquoc 01-06-12 05:11 PM


Originally Posted by FlashBazbo (Post 13685214)
If Specialized requires its employees to sign the same standard agreement that most manufacturing companies do, they will win this suit.

Different states handle anti-competitive/invention employment contracts very differently. States like California just laugh at them, states like Minnesota enforce them. Depends where the contract is signed / where the case is heard.


Originally Posted by FlashBazbo (Post 13685214)
Probably all equipment manufacturers with enough money for legal counsel have, as a part of the employment arrangement, a clause that assigns all industry-related inventions created by the employee during their term of employment to the company. This is true whether the invention was created at work, at home, or at a competitor's shop. The same deal is signed by every employee. It would be extremely unusual for a company like Specialized NOT to have such a provision. And it would be extremely unusual for a new hire not to sign it. (If they didn't sign it, they would not be hired. The company would assume that the person came to the relationship with less than pure motives.)

Volagi's principals made a number of mistakes. First, of course, they very likely violated their employment agreements in a big way. (Something that Specialized CANNOT let slide, lest their I.P. all be subject to appropriation.) Were they insane or just stupid? Probably just stupid. (Hire a lawyer before you do something this big!!) Second, they didn't wait long enough to have a plausible argument that they invented their technology after they left Specialized. The time line for this deal (their departure from Specialized practically on top of a competitive product introduction) makes this a very easy, and relatively inexpensive, case for Specialized to win. Because the bike was invented during their time at Specialized, Specialized OWNS their design! Asking for a royalty is going easy on these guys. Most former employers would not be so charitable as to let the new entity continue to exist. They could very well press charges for theft.

You're assuming as fact that they came up with any substantive design and or research for the bicycle while at Specialized --Volagi claims this is not the case, they are in court to determine this now. Specialized will need to prove this. You don't know the details of this case, you shouldn't assume the details until the gag order put in place yesterday requested by Specialized is lifted. Unless you happen to be getting information from the public court room from another source or if you went from Tennessee to DT San Jose yourself?

LemondFanForeve 01-06-12 05:11 PM


Originally Posted by rangerdavid (Post 13685919)
with the black and red, I guess they'll be sueing Michael Jordan next....

Lol, this. Next thing Specsch is gonna do, is try suing Michael Jacksons estate, claiming he couldnt wear his red & black "Thriller" jacket, b/c they own the patent on those colors, & he probably "stole" the idea from them? Gimme a break.

SlimRider 01-06-12 05:13 PM

This is most likely a lawsuit intended to set precedent more so than to bully. Let all engineers and company innovators know with certainty, the outcome of any trade trepasses, long before the treacherous thought takes root.

- Slim :)

NathanC 01-06-12 05:15 PM


Originally Posted by gregf83 (Post 13686134)
How many bikes have a curved top tube like Specialized? They look similar to me.

You mean a curved top-tube that branches of to be the seat-stays?

LemondFanForeve 01-06-12 05:16 PM


Originally Posted by jdon (Post 13685977)
No, he lacks white.

No, theres white trim on the uni's and shoes.

SumoMuffin 01-06-12 05:18 PM


Originally Posted by Jed19 (Post 13685717)
That is Specialized's intention. Strangle the baby in the crib.

I agree, even if the lawsuit is completely baseless (which I'm not saying it is or isn't) this will be the end result. Specialized will come out relatively unscathed and Volagi will be ruined. So, yes they are bullies, but that's business nowadays.

As George Carlin once said: "Everybody knows by now all business men: completely full of s**t. Just the worst kind of low life, criminal, c**k suckers you could ever want to run into. A f**kin piece of s**t businessman. And the proof of it is, the proof of it is: they don't even trust each other. They don't trust one another. When a businessman sits down to negotiate a deal, the first thing he does is to automatically assume that the other guy is a complete lying pr**k, who's trying to f**k him out of his money. So he's got to do everything he can to f**k the other guy a little bit faster and a little bit harder; and he's got to do it with a big smile on his face. You know that big bull-s**t businessman smile?"

I'm sorry to hear this, though, since I've always been a fan of Specialized products. Especially their accessories and consumables, much better quality than the Bontrager stuff.

pbd 01-06-12 05:18 PM


Originally Posted by danvuquoc (Post 13686162)
You're assuming as fact that they came up with any substantive design and or research for the bicycle while at Specialized --Volagi claims this is not the case, they are in court to determine this now. Specialized will need to prove this. You don't know the details of this case, you shouldn't assume the details until the gag order put in place yesterday requested by Specialized is lifted. Unless you happen to be getting information from the public court room from another source or if you went from Tennessee to DT San Jose yourself?

They have admitted they had the idea while at Specialized. It's the reason they left in the first place, and they've said as much. I'm not saying Specialized is correct, but there's a good chance they are. We'll see what happens.


"According to Choi, the genesis of the Liscio concept came while both were working for Specialized but the two didn’t use any of the company’s trade secrets in its development."

http://velonews.competitor.com/2012/...ad-bike_201808

"Added Choi, 50: 'We thought we had a better idea. And in order for us to pursue it, we were going to have to quit Specialized. For them to pursue this is an incredible surprise.' "

http://www.mercurynews.com/breaking-news/ci_19662131

Jed19 01-06-12 05:20 PM


Originally Posted by SlimRider (Post 13686173)
This is most likely a lawsuit intended to set precedent more so than to bully. Let all engineers and company innovators know with certainty, the outcome of any trade trepasses, long before the treacherous thought takes root.

- Slim :)

In other words, intimidate to oblivion. Do not even think of inventing anything that closely resembles a bike or cycling product.

This company is a blowhard, that is what I think.

danvuquoc 01-06-12 05:29 PM


Originally Posted by laserfj (Post 13685965)
Non-compete means you can't compete. If they signed one and they are trying to sell bikes within the term of their non-compete, they are in violation of it...

And non-competes are automatically void in the state of California (with a few small exceptions which don't apply in this situation). I am making the assumption that because both of the founders live in California, had to sell their homes in California, Volagi is a California based company, and the case is being heard in California... so likely their contracts were signed under California employment law. Of course I could be wrong about that assumption, but if it is the case the following Appellate decision opinion applies:

Edwards v. Arthur Andersen LLP, No. B178246 (Cal.App. 2 Dist./Div. 3)

dalava 01-06-12 05:34 PM

Ok, the best I can gather, the facts are:
- These guys had an employment contract with Specialized, and the contract probably stipulates all kind of non-compete, IP ownership, non-solicitation, etc., etc.
- They had the idea while working at Sp.
- For them to pursue this as their own opportunity, they quit Sp so they can get out of the employment contract
- (this part I am not sure is true or not) Before they quit, they talked to Sp and was somewhat assured it's all cool
- Now they have a product prototype, and Sp felt it was way too close to comfort
- So Sp is using the employment contract to sue them. The exact clause Sp said they violated is not exactly clear to me (my guess is that it's probably a combination of non-compete and IP ownership)

I know for sure non-competes don't really hold much sway in Cali courts; on the other hand, if they signed an employment contract that assigns all IP right to Sp while working there, they they may have some issues.

danvuquoc 01-06-12 05:35 PM


Originally Posted by pbd (Post 13686199)
They have admitted they had the idea while at Specialized. It's the reason they left in the first place, and they've said as much. I'm not saying Specialized is correct, but there's a good chance they are. We'll see what happens.


"According to Choi, the genesis of the Liscio concept came while both were working for Specialized but the two didn’t use any of the company’s trade secrets in its development."

http://velonews.competitor.com/2012/...ad-bike_201808

"Added Choi, 50: 'We thought we had a better idea. And in order for us to pursue it, we were going to have to quit Specialized. For them to pursue this is an incredible surprise.' "

http://www.mercurynews.com/breaking-news/ci_19662131

An idea is not an invention, in fact my prior invention agreement for my contract distinctly defines both -- I have never seen an idea clause in a contract, but an invention and prior inventions clause is very common.

X-LinkedRider 01-06-12 05:36 PM

Just like any unoin or large corporation... They can only control your life while you're part of it. Afterwards they can only make fools of themselves trying... And just when they were about to eclipse Trek. AT&T and MicroSoft were less aggressive to its competitors than Specialized is. They are just not Lance enough for anybody to care quite yet.

danvuquoc 01-06-12 05:38 PM


Originally Posted by dalava (Post 13686259)
I know for sure non-competes don't really hold much sway in Cali courts; on the other hand, if they signed an employment contract that assigns all IP right to Sp while working there, they they may have some issues.


This is probably key to the entire lawsuit, as well as if Specialized can prove when anything was developed.


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