Why is Specialized trying to strangle Volagi in its crib thru a lawsuit?

Is this company a courthouse bully?

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

I was wondering when someone was going to post this.

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.

Of course they are, they're there to make money and protect their profits. They'll probably lose though, its hard to enforce a non-compete / invention clause when there wasn't even a bicycle that existed when sued in California, let alone at a court in San Jose. Californian courts are notoriously pro-competition. I'm siding with Volagi on this one just because I enjoy new-ish ideas from new companies.

There's not enough known yet. Are they suing them simply because they left and started their own company? That probably won't go anywhere.

Or are they suing them because they are using ideas and/or design research they developed while at Specialized? Specialized seems to be saying that the Volagi frame was ripped from a Specialized prototype, although they're assertion is vague at this point. If part of Volagi's R&D was done while they were employed at Specialized, they're in trouble.

I have heard stories as to how Specialized kinda intimidate small companies and even their own dealers by insinuating/threatening lawsuits.

The two guys who started Volagi were equipment guys, not bike design people. And I read that Specialized is asking for "royalties" on each Liscio sold.

What chutzpah?

Bully? A corporation is not a person, despite what the Supreme Court says.

Even if they lose, they still win. A fledgling company trying to get off the ground will really be set back by having to defend itself in a lawsuit like this.

I agree, but a corporation can still act like a person, as in this case.

Make Mike Money!

That's politics. A corporation, while it might not have all the rights of a person, is, for the puroses of law, a person. I had that drummed into me in freshman business law class.

Yes. Specialized often tries to dictate what products by other brands their dealers sell.

They also do things like reserve S-Works selling rights for only their most dedicated dealers. For example a dealer that only makes a small preseason order from Specialized and sells several other brands of bikes and accessories might not even be allowed to special order any S-Works bikes. So if a customer comes in and really wants an S-Works Tarmac, Specialized won't even let that dealer order the bike for the customer because that dealer isn't "dedicated" enough to "deserve" the right to order any S-Works bikes.

"Bell Sports alleges that Specialized is attempting to force dealers to agree to not sell its Giro brand of cycling shoes."

https://www.bicycleretailer.com/news/...tail/5940.html

And then there's this:

https://forums.mtbr.com/alaska/epic-d...ed-581975.html

This really isn't as strange as you guys are making it out to be. If Specialized requires its employees to sign the same standard agreement that most manufacturing companies do, they will win this suit.

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.

This guy, Sinyard, and his company are not nice fellows, won't you say?

He is basically trying to force dealers into selling only Specialized products. That can't be good for cycling overall.

Yeah I just read the Specialized-Volagi issue in Volagi's Facebook page last night and there are a number of people who are banning any Specialized product purchases.

Where are "consumer boycotts" when you need them? This kinda of people need to be put in their place thru consumers voting with their dollars.

A guy/company like this won't be satisfied until we are all riding their bikes, and all decked out in their outfits.

You meant boycotting, right?

Mitt says otherwise... Mitt > Supreme Court

I believe I read in Volagi's Facebook page that not even once did they think of designing anything anywhere about the Volagi frame while employed with Specialized. Everything came about after leaving Specialized. But then again, at this point, it's a he said she said thing. So who knows whos telling the right story...

If Specialized's creakmeister OSBB bottom bracket (with no alternative) doesn't kill them and Specialized's worst-of-both-worlds hybrid gearing doesn't kill them, what can a boycot do?

The word slipped out of my mind when I noticed my manager coming my way. By the time I got back into posting, I couldn't remember "boycot".

You're making a ton of assumptions here. These guys did not work in product development.

First hand dealing with some of the shops they retail through. They are definitely bullies in regards to merchandizing and shelf space.