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Is Specialized a Bully?

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Is Specialized a Bully?

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Old 01-06-12 | 03:51 PM
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Financially, I doubt Volagi has pulled in what Speciallized has spent thus far. This isn't about getting back financial losses. This is about crushing them before they get off the ground and sending a message to their employees about what happens if you leave Specialized and try to stay in the industry. They don't even really think that a firm that has only sold <200 bikes thus far can compete with them. If Volagi survives this, great press/exposure for them though.
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Old 01-06-12 | 03:51 PM
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Originally Posted by wkg
That's a very good question. To paraphrase bikesnobnyc: Volagi has infringed on Specialized's patented use of the colorway red, black and white.

Specialized doesn't just bully other small companies, they also bully their own dealers.
So, am I to understand that if another bike company uses: red, white, &black on their bikes, Specialized will "sue" them? Patent or not, those are pretty universal colors, ANYONE can use, or am I missing something?
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Old 01-06-12 | 03:51 PM
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Originally Posted by FlashBazbo
In every manufacturer of which I am aware, EVERY employee signs this deal. In our company, it doesn't matter who you are -- welder, accountant, janitor, engineer, salesman, painter -- everybody. That's just normal operating procedure for companies. The only assumption I'm making is that Specialized uses an arrangement that 90%+ of manufacturing companies use.
I don't think assumption means what you think it means.

Because the bike was invented during their time at Specialized...
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Old 01-06-12 | 03:55 PM
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Originally Posted by wjclint
Yes, but whether they signed one, whether whatever they did sign is enforceable under California law, whether they breached the actual terms of whatever they signed, or whether they violated some statute in California is what we don't know and don't know even half of the facts necessary to form an even partially educated opinion about.

Just from glancing at the court's docket they started a 2 week jury trial on 1/3/2012, Specialized filed close to 200 pleadings, motions, responses, etc since the case was filed in October 2010, and Volagi filed over 150 motions and pleadings. Specialized has spent over a $1,000,000 just in attorney fees and Volagi has spent over $300,000 in attorney fees (I assume that includes the fees for representing the individual defendants as well since they are all represented by the same firm).

Unless someone is watching the trial (Superior Court of California, Santa Cruz) and/or has access to the all the pleadings and discovery in the case, any conclusions about the actual merits of the case are not likely to have much merit.
Of course it's not reasonable to jump to the conclusion that Specialized will or should win. But it is perfectly reasonable to assume that Specialized *could* require such contracts though (since most companies do), and therefore perfectly reasonable to guess that this lawsuit *could* have a legal basis. But it is also perfectly reasonable to guess that Specialized *could* be playing the bully here.

To assume Specialized is just being a bully to a little competitor is just as erroneous as assuming they are perfectly justified in bringing suit. Either is an assumption, so jumping to "Boycott Specialized because they're big bullies!!" is completely unjustified. Many seem to be jumping straight to "Boycott Specialized", when Specialized really could be in the right. We shall see.


Originally Posted by Commodus
I've signed several as well, however there are limitations. You don't just sign away your rights to develop anything in the future, until you die.
"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."

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

It's a bike invention and they worked for a bike company. If Specialized followed the nearly-global standard of requiring employees to assign invention rights to Specialized, then Specialized is more than justified in requesting a royalty from every bike sold. Maybe such contracts were not required, but if they were, then Specialized could have a really good case and isn't just being a bully for the sake of being a bully.

Last edited by pbd; 01-06-12 at 04:06 PM.
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Old 01-06-12 | 03:59 PM
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Originally Posted by pallen
I agree, but a corporation can still act like a person, as in this case.
My main point is that "bully" is a term mostly used to describe human (or animal) conduct, not business practices.
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Old 01-06-12 | 03:59 PM
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Originally Posted by LemondFanForeve
So, am I to understand that if another bike company uses: red, white, &black on their bikes, Specialized will "sue" them? Patent or not, those are pretty universal colors, ANYONE can use, or am I missing something?
You must not read bikesnobnyc
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Old 01-06-12 | 04:00 PM
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Originally Posted by wkg
Trek duh
Greg Lemond would beg to differ
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Old 01-06-12 | 04:06 PM
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I wonder at what stage it becomes a design that Specialized would own. Is that what this is really about? If the one guy said, "hmm, I wonder if having longer seatstays not attached to the seatpost would give a better ride" to the other guy, but they didn't actually get around to planning it out and designing it until they were gone, does Spesh still own it, or is it just that they only would have owned it if they'd designed the whole thing while still working at Specialized? I'm all for innovation, but if all this Mr. Volagi stuff was going on and the bike was designed while still at Spesh, they're going to get hammered. If their facebook posting is true instead, it's still a bit iffy because there's a lot there about how they only designed it after putting in their notice. No word that they designed it after leaving the company.
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Old 01-06-12 | 04:07 PM
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Originally Posted by pbd
Of course it's not reasonable to jump to the conclusion that Specialized will or should win. But it is perfectly reasonable to assume that Specialized *could* require such contracts though (since most companies do), and therefore perfectly reasonable to guess that this lawsuit *could* have a legal basis. But it is also perfectly reasonable to guess that Specialized *could* be playing the bully here.

To assume Specialized is just being a bully to a little competitor is just as erroneous as assuming they are perfectly justified in bringing suit. Either is an assumption, so jumping to "Boycott Specialized because they're big bullies!!" is completely unjustified. Many seem to be jumping straight to "Boycott Specialized", when Specialized really could be in the right. We shall see.




"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."

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

It's a bike invention and they worked for a bike company. If Specialized followed the nearly-global standard of requiring employees to assign invention rights to Specialized, then Specialized is more than justified in requesting a royalty from every bike sold. Maybe such contracts were not required, but if they were, then Specialized has a really good case and isn't just being a bully for the sake of being a bully.
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.
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Old 01-06-12 | 04:10 PM
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Old 01-06-12 | 04:13 PM
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Originally Posted by noise boy
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.
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Old 01-06-12 | 04:13 PM
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with the black and red, I guess they'll be sueing Michael Jordan next....
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Old 01-06-12 | 04:17 PM
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Originally Posted by noise boy
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.
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Old 01-06-12 | 04:19 PM
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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.
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Old 01-06-12 | 04:21 PM
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Originally Posted by noise boy
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...
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Old 01-06-12 | 04:23 PM
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..... 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.
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Old 01-06-12 | 04:23 PM
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Originally Posted by rangerdavid
with the black and red, I guess they'll be sueing Michael Jordan next....
No, he lacks white.
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Old 01-06-12 | 04:25 PM
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Originally Posted by laserfj
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.
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Old 01-06-12 | 04:35 PM
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Originally Posted by rangerdavid
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.
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Old 01-06-12 | 04:44 PM
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Originally Posted by himespau
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.
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Old 01-06-12 | 04:46 PM
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Originally Posted by gregf83
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.


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Old 01-06-12 | 04:52 PM
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Originally Posted by rangerdavid
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.
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Old 01-06-12 | 04:55 PM
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Originally Posted by gregf83
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.

Anyway, there is a posting in Volagi's Facebook page about one evil-doing they did... and according to them, it has been reversed.
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Old 01-06-12 | 05:00 PM
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Old 01-06-12 | 05:02 PM
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Originally Posted by rangerdavid
..... 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
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