The Rupp Report: China On The Way To Equal (IPR) Rights

“To be copied is the highest form of flattery.” Everybody in the textile and textile machinery
industry knows these words. Having been a sales manager in the past in a silk weaving company, I am
reminded that the issue of copying was always at the forefront of any work.

I still have memories of exhibitions like Interstoff in Frankfurt, which was the most
important event at that time, when people came into the booth, armed with scissors to steal some
new designs. In those days, physical samples were needed, but not for long. Soon, electronic design
software appeared in the industry, and many designs went eastward.

Go East

It’s also common sense that with the new World Trade Organization (WTO) treaty and the
abolishing of quotas, China became a textile powerhouse — first with fabrics, and now with
machinery. The situation became serious with the switch of ITMA Asia from Singapore to Shanghai.
The first show looked more like kind of a local Chinese machinery show than an ITMA with its
international flavor. Between every Western exhibitor there were always some Chinese manufacturers,
whose machines looked somewhat like clones of Western machines. And moreover, local people with
cameras and video equipment behaved as if they were at home. Nobody stopped them from taking
pictures and filming foreign equipment.

Events

As mentioned above, trade fairs provide venues for presenting innovations and trends. For an
organizer of trade fairs and exhibitions, such as Messe Frankfurt, it is very important to be able
to ensure effective legal recourse against any brand and product piracy.

In its brochure titled “Protection against brand and product piracy,” Messe Frankfurt states
that it “takes the protection of intellectual property rights very seriously. It is the first
exhibition company worldwide to have launched an initiative against brand and product piracy:
‘Messe Frankfurt against Copying.’ Moreover, it has incorporated a product piracy clause into its
General Terms & Conditions, banned the taking of photographs and offers assistance in the
uncompromising enforcement of intellectual property rights [IPR], thereby creating a fair business
environment in which imitators do not stand a chance.”

However, as Messe Frankfurt notes, “It is only the exhibitors themselves or their lawyers who
can take effective action against brand and product piracy based on industrial property law.” Its
brochure outlines the necessary steps for an exhibitor to fight against brand and product piracy.

The Fight Starts

In spite of all odds, another ITMA Asia CITME took place in 2010, and, frankly speaking, the
show was much better organized than the previous one. And, to the surprise of many Western
exhibitors and visitors, some Asian booths were shot down after a short time owing to IPR
infringement.

As the Rupp Report has been informed, one company that successfully fought for its IPR rights
at ITMA Asia CITME 2010 was Italy-based Mesdan S.p.A. Established in 1952, Mesdan is a producer of
state-of-the-art yarn knotters and yarn splicers in both automatic and hand-operated versions. The
company reports its splicers are integrated into automatic winders from companies such as
Italy-based Savio S.p.A. and China-based Jingwei Group. Its many patents, logo marks and trademarks
are registered in numerous countries around the world, including China and India. According to
Mesdan, its yarn knotters and splicers and their spare parts have been attractive counterfeit
targets for the past two decades.

In 2009, Mesdan debuted its Spare Parts Authenticity Program to help it fight IPR
infringements. The program comprises barcoding to enable quick product traceability and
identification, and marking of crucial splicer parts with the Mesdan logo.

ITMA Asia – CITME 2010 organizers set up an IPR office, which handled 21 claims related to
IPR violations, of which eight were submitted by Mesdan for splicers and related spare parts.
According to Mesdan, the office examined the claims carefully, found them to be legitimate and
ordered eight exhibitors to remove the offending exhibits.

Positive Results

Mesdan reported: “This action couldn’t have been really achieved without an objective
assessment and the efficient assistance of the IPR office. Their professional behavior represents a
good example of China’s efforts to implement international standards and ‘no-tolerance’ rule in the
field of industrial intellectual property rights, copyrights and patents. We believe this
experience might bring optimism to machinery manufacturers and confirms that China IPR rules do
change at pace with its fast industry development.”

These changes are also confirmed by Germany-based nonwovens machinery manufacturer DiloGroup.
In an exclusive interview that will be published in the next issue of

Textile World
, Owner and Chairman Johann-Philipp Dilo answered the question, “Can you protect your
products in Asia?” as follows:

“There is a main emphasis within the DiloGroup in the field of research and development
works, which frequently lead in inventions and are accompanied by patent applications in all
important markets. We have therefore shifted to holding Chinese patent applications too, because we
think that by now a well-operating patent culture is established that is working according to the
European system.”

If you want to share your experience with IPR in Asia, please write to
jrupp@textileworld.com.



October 5, 2010

California Signs Carpet Stewardship Bill Into Law

California recently signed into law bill AB 2398, Carpet Stewardship Bill. The law, sponsored by
Assembly Speaker John A. Perez, D-Los Angeles, offers an incentive to entrepreneurs and inventors
who produce marketable products from post-consumer carpet. The bill also generates revenue through
an assessment of 5 cents per square yard on all carpet sold in California. In addition, carpet
manufacturers will have to establish a stewardship plan with the state for recycling carpet. The
plan includes consumer education efforts, fee assessments, and progress measuring and reporting.

Carpet America Recovery Effort™ (CARE) — a non-profit organization that comprises
manufacturers, recycling entrepreneurs and government agencies, and works to find market-based
solutions for recycling carpet and diverting it from landfills — was listed in the bill as the
carpet industry’s designated stewardship organization. CARE will work with California regulatory
agencies to help affected manufacturers create their stewardship plans. The organization also will
work with CalRecycle to increase carpet recycling through a funding mechanism included in the bill.

Bill AB 2398 differs from other extended producer responsibility legislation in that it
offers financial incentives to encourage the reuse of old carpet.

October 5, 2010

Blackstone To Acquire PGI

Charlotte-based nonwovens producer Polymer Group Inc. (PGI) has agreed to be purchased by an
affiliate of Blackstone Capital Partners V LP, a New York City-based private investment and
advisory firm. The total value of the transaction is not clear, but holders of PGI common stock
will receive approximately $15.25 per share upon closing, plus a ratable share of additional monies
upon their release from an escrow account that will be set up to cover certain potential
tax-related obligations. The transaction is expected to be finalized before the end of
first-quarter 2011.

“The sale to Blackstone is the culmination of our strategic review process and we believe
that this transaction represents the best value alternative available to our stockholders,” said
Veronica “Ronee” M. Hagen, CEO, PGI. “Blackstone is committed to supporting our strategy of
continued growth and investment in proprietary capabilities in our markets around the globe. The
leadership team and all of the employees of PGI are excited to begin the next chapter at PGI and to
maintain our position as a global industry leader.”

“Polymer Group is an attractive company because of its leading position in the nonwovens
industry and its strong footprint in high growth developing markets,” said Chinh E. Chu, a senior
managing director of Blackstone. “The Company has a talented management team, which we believe has
much to achieve with our support and financial resources.”

October 5, 2010

Milliken Named One Of America’s Safest Companies For Second Time

Spartanburg, S.C.-based textile and chemical manufacturer Milliken & Company has for the second
time been named one of America’s Safest Companies by EHS Today magazine, becoming the first company
to be a repeat winner. Once a company receives the award, it must wait five years to be considered
again. Milliken first received the award in 2004, and is among 12 companies recognized this year.

Since America’s Safest Companies was launched in 2002, 120 organizations have received the
award. Award criteria include employee involvement and support from company management; innovative
solutions to safety challenges; injury and illness rates lower than their industries’ average;
implementation of comprehensive training programs; evidence that the safety process is based on
accident prevention; good communication about the value of safety; and a method to prove the
benefits of the safety process.

“Milliken’s safety process is driven and owned by the company’s production associates and
supported from the very top,” said Kevin Cox, corporate safety manager, Milliken. “Our leadership
believes that safety is our number one core value and understands that the best person to tell you
how to run a job safely is the person actually doing the job.”

Milliken reports that it has experienced considerable success with its safety process —
Milliken Performance Solutions® (MPS) — and now offers it to other manufacturing companies as
well, under the trademark Milliken Safety Way™.

October 5, 2010

Carr North America Introduces CARRFLEX™ Mattress Cover Fabric

Tiverton, R.I.-based Carr North America reports its new polyurethane-coated medical mattress cover
fabric is flexible and breathable while also providing resistance to bed bugs, fire, water, blood,
microbes, viruses, bacteria, fungi and methicillin-resistant Staphylococcus aureus. According to
the company, CARRFLEX™ mattress cover fabric meets the strictest requirements for patient comfort,
health and safety. The fabric is available on rolls up to 86.6 inches wide and 100 yards long, and
is offered in a variety of colors.

October 5, 2010

Newson Gale Introduces Earth-Rite® RTR™ Static Grounding System

Jackson, N.J.-based Newson Gale Inc., a provider of static grounding and bonding products, has
introduced the Earth-Rite® RTR™ Static Grounding System, designed for tanker trucks that transfer,
process and handle various flammable or combustible liquids, gasses and powders. The system
features three-parameter failsafe verification to confirm connection to a static dissipative ground
point; provide continuous electronic verification of a less-than-10-ohm connection to that point;
and recognize the specific tanker truck. Also, the unit’s face features a cluster of bright,
pulsing light-emitting diodes to show a constant positive ground connection for the duration of the
transfer operation.

A NEMA 4X corrosion-resistant XP enclosure with a certified operating temperature range of
-25ºC to +50ºC protects the system’s electronics from harsh environments as well as dust, liquids
and weather damage. The RTR system also includes a pair of voltage-free “dry” contacts that
energize only when resistance to the verified ground connection measures 10 ohms or less, enabling
the user to comply with global static control standards including NFPA 77, API RP 2003 and Cenelec
CLC/TR:50404.

For general applications such as drums, totes, mobile tanks and railcars, Newson Gale offers
the Earth-Rite PLUS™ system, which provides the same approvals and characteristics of the RTR
Static Grounding System without tanker-truck recognition.

October 5, 2010

Terrot Hosts Iraqi Customers

Germany-based knitting machine manufacturer Terrot GmbH recently hosted 10 Iraqi customers at its
headquarters for a three-week training program following the customers’ purchase of several Terrot
circular knitting machines. The training included a theoretical portion held in the classroom,
which enabled the customers to apply directly what they learned using hardware and software
provided by Terrot. The customers also received practical training in operating the machinery with
the help of Terrot’s technicians in its production facility. The hands-on training focused on using
advanced circular knitting machines such as the S296-1 and the life-size RH-216.

October 5, 2010

US Nonwovens Completes Phase II Expansion And Modernization

Brentwood, N.Y.-based U.S. Nonwovens Corp., a manufacturer of personal and home care products for
retail and institutional markets, has concluded Phase II of its North American Capacity Expansion
and Modernization Program — a $32 million investment that included adding 500,000 square feet of
manufacturing and distribution space; installing state-of-the-art fully automated blending,
converting and robotic packaging lines and molds; and improving production of the nonwovens line at
its Brentwood Mill location. According to the company, all upgrades include high-level control and
automation systems.

“Our ability to satisfy customer demand across the retail and institutional markets, with the
unforeseen 3X surge for disinfecting products as a result of last year’s H1N1 Swine Flu outbreak is
a testament to our commitment of having Open Surge Capacity available for our customers,” said
Robert Stein, director of corporate communications, U.S. Nonwovens.

The company reports that Phase III of the program has already begun, and upon completion will
provide increased annual capacity as well as skill sets to meet future customer demand along with
unpredictable surges in demand. 

October 5, 2010

American Textile Co Celebrates 85 Years

Duquesne, Pa.-based American Textile Co. — a supplier of mattress and pillow protectors, bed
pillows and mattress pads — is celebrating its 85th anniversary. The company manufactures bedding
brands including Aller-Ease® for asthma and allergy sufferers; Rest Right™ high-performance bedding
products; DermaTherapy® for people with sensitive skin or chronic skin problems; and Cool
Sensations™ for people who experience night sweats. It employs more than 400 people at its domestic
operations in Duquesne, Salt Lake City and Dallas, as well as its locations in Central America and
Asia.

“Over the past 85 years, American Textile Company has remained strong throughout many changes
in the economic climate,” said Reid Ruttenberg, Chairman of the Board. “I attribute our success to
several factors: anticipating market needs, developing new product line extensions, and providing
value-based solutions to our customers. We are focused on aggressive growth for 2011, illustrating
the strength of the company’s strategy.”

October 5, 2010

IMB Select With Strong Lecture Program

KÖLN, Germany — October 11, 2010 — The IMB Select 2010 is kicking off in its new form with a
series of top-class lectures. Entitled “Heading for the future: enhancing global collaboration”,
the lectures cover the entire spectrum, from sourcing to retail and from order placement back to
procurement. On both days of the event, lecture blocks will alternate with Speakers Corner
presentations, culminating in Future Talk, the concluding highlight of the fair, on the afternoon
of the second day.

Just as the hall plan is based on the five defined areas of the textile value chain, the
lectures of the supporting programme shed light on the various areas of day-to-day business in
logical order. On 9 November 2010, Session 1 will focus on the umbrella topic “Sourcing &
Production Line Management”, whilst Session 2 will be dedicated to “Manufacturing Management”.
Because fashion is more than just clothing, this block of lectures will open with a presentation on
sourcing shoes by means of a management system. The initial results of research conducted as part
of the EU project “Open Garments”, which examines the creation, production and marketing of
individualised clothing, will be presented by the project leadership. A high-tech company from
France will be reporting on the possibilities parametric pattern design in 3D opens up for the
product development of functional sportswear. A provider-neutral lecture on system-controlled
collection development rounds off the first session.

Process control is the magic word in the core segment of the supply chain for clothing. From
collection development and production all the way to delivery or from order placement by retailers
all the way to the necessary sourcing of materials and ingredients prior to production, the reach
of the latest-generation software packages and control systems extends deep into the upstream and
downstream areas of the value chain. The abbreviations for the latest solutions are ERP, PDM or PLM
and promise modular or holistic solutions for using and actuating the necessary data transfer. A
major jeans manufacturer from Turkey will talk about his experiences with an ERP system. An
American consulting company will report on the introduction of PLM systems to the clothing
industry. The connections between range planning and PDM will be illustrated by means of an example
from the German women’s wear sector.

Session 3 on 10 November 2010, “Finished Goods & Retail Management”, is dominated by the
handling and labelling of finished goods and the special relevance of e-commerce in territorial
states. A speaker from Moscow will talk about the possibilities of e-commerce for the market entry
and sale of fashion in Russia. The following lecture deals with alternative methods for article
surveillance and unambiguous labelling. Finally, a board member from Gerry Weber AG will report on
his company’s live experiences with RFID.

Several other company presentations during Speakers Corner will be followed by the highlight
of the lecture programme at 4 p.m.: the Future Talk, a one-hour panel discussion on: “Dialogue
Marketing and CRM: gather, evaluate and entice”. Providers from the field and users from the
fashion industry and retail sector will discuss the future of a customer approach driven by
specific data and the unbelievable extent of the potential this vast field holds – potential which,
in many cases, has yet to be exploited.

IMB Select 2010

Fashion & Textiles: IT Systems, Services and Strategies

09 – 10 November 2010

Posted on October 5, 2010

Source: Koelnmesse GmbH

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