The US government’s annual special report on the adequacy and effectiveness of intellectual
property rights protection (IPR) shows some improvements among US trading partners, but for the
first time Canada is on the Priority Watch List, and problems continue with China, Russia and a
number of other countries.

The report reviewed trade with 77 nations, with 46 being placed on the Priority Watch List or
a lower-level monitoring list. The US Trade Representative (USTR) said 12 countries on the Priority
Watch List will be “the subject of particularly intense engagement through bilateral discussions
during the coming year.”

Underscoring the importance of the report, USTR Ron Kirk said: “As US rights holders,
businesses and workers suffer losses from international piracy, counterfeiting and other forms of
IPR theft, the Special 301 Report  provides a critical policy tool for focusing on urgent
problems that undermine one of America’s great strengths in the global economy – our
innovation  and creativity. In this time of economic uncertainty, we need to redouble our
efforts to work with all of our trading partners – even our closest allies and neighbors such as
Canada – to enhance protection and enforcement of intellectual property rights in the context of a
rules-based trading system.”

For the first time, Canada was added to the priority list, reflecting increasing concern
about the need for copyright reform as well as border protection.

While noting that China and Russia have shown “some evidence of improvement,” Kirk said, “I
am particularly troubled by reports that Chinese officials are urging more lenient enforcement of
IPR laws, motivated by the financial crisis and the need to maintain jobs.” He added that China
needs to strengthen its approach to IPR protection and enforcement, not weaken it. With respect to
Russia, Kirk said the United States is committed to ensuring that Russia fulfills its promises to
improve its IPR protection and enforcement regimes as part of a bilateral agreement with the United
States.

Algeria and Indonesia were added to the Priority Watch List, reflecting growing concerns
about IPR protection in those countries, but South Korea was removed from the Watch List in view of
what the USTR said were “significant improvements” made during the past year. This marks the first
time that Korea has not been on the Watch List or the Priority Watch List.

In addition to Canada, Russia, China, Algeria and Indonesia, other countries on the Priority
Watch List are Argentina, Chile, India, Israel, Pakistan, Thailand, and Venezuela.

 

In a filing with the USTR, the American Apparel and Footwear Association (AAFA) said footwear
and apparel amounted to 38 percent and 9 percent, respectively, of the total value of counterfeit
products seized by US Customs officials last year. The association said last year Chinese
counterfeit products accounted for 81 percent of the total value of all goods seized by Customs.

AAFA President and CEO Kevin Burke said: “IPR infringements in China run the gamut in the
apparel and footwear industry with copyright and trademark infringement as two leading areas of
concern.” He also cited counterfeit labels and packaging, manufacturing of counterfeit products and
retail counterfeit trade as problems. He called for criminal and civil justice reform and better
customs training.



May 5, 2009

The Institute of Environmental and Human Health (TIEHH) at Lubbock, Texas-based Texas Tech
University (TTU) has received a US patent for its process used to create nonwoven toxic chemical
decontamination wipes such as Fibertect™.  The technology was invented by Seshadri Ramkumar –
an associate professor in TIEHH’s Nonwovens and Advanced Materials Laboratory – and a team of
scientists.

“This is an important milestone in the commercial development of the product and will aid
our partner, Hobbs Bonded Fiber, in its marketing and sales efforts,” said David Miller, vice
chancellor of TTU’s Office of Technology Commercialization, which licensed the technology to Waco,
Texas-based Hobbs.

“The process for which the patent has been issued focuses on a multilayered wipe with a
unique fabric structure, which can wipe liquid and vapor toxins,” Ramkumar said. “Also, it lends
itself to the use of cotton and other fibers, depending on the need. The wipe can be used on human
skin and military equipment.”

May 5, 2009

Israel-based Nilit Ltd. – a global manufacturer of nylon 6,6 fibers – has acquired Nylstar Inc., a
nylon manufacturer owned by JP Morgan Chase. Nilit will acquire Nylstar’s US operations and its
nylon 6,6 plant in Martinsville, Va., which will become part of Nilit’s global production facility
network, making the company one of the largest nylon 6,6 producers worldwide. Last year, Nilit
opened a state-of-the-art nylon production facility in Suzhou, China
(See ”
Nilit
Opens New Nylon Facility In Suzhou China,” May 27, 2008).

“Nylstar is a respected manufacturer that shares Nilit’s commitment to innovation and
quality,” said Arie Gottlieb, general manager, Nilit. “Having the Martinsville facility as part of
the Nilit network will expand our ability to service our growing North American customer base, our
US partners and as well as other customers around the world.”

Nilit has named former Nylstar President Basil B. “Sonny” Walker president of Nilit US.
“Sonny’s knowledge of the North American market will help us drive Nilit’s growth on the
continent,” Gottlieb said. “In addition, Sonny’s leadership will ensure a smooth integration and
uninterrupted service for both our existing and new customers.”

“The union of Nilit and Nylstar here in the US will be extremely beneficial for our
customers,” Walker said. “Not only will this new partnership ensure ready supply but we expect even
higher levels of innovation and quality to result from this collaboration.”

Nylstar’s product line includes fully-, partially- and low-oriented yarns in a variety of
filament counts, lusters and cross-section types. Nylstar’s line will complement Nilit’s portfolio
of branded performance yarns for intimate apparel, bodywear, legwear and activewear.

May 5, 2009

Polyester staple fiber producer DAK Americas LLC, Charlotte, and carpet manufacturer Shaw
Industries Group Inc., Dalton, Ga., have formed a joint venture (JV) company, Clear Path Recycling
LLC, to produce Recycle PET (RPET) from post-consumer polyethylene terephthalate (PET) bottles.

Clear Path Recycling plans to build a facility at DAK’s Cedar Creek PET resin manufacturing
site in Fayetteville, N.C., and annually will recycle more than 280 million pounds of PET – equal
to around 5 billion bottles. The operation will reduce energy use by some 2.5 trillion British
thermal units compared to virgin polyester production.

DAK and Shaw will use the RPET material primarily in-house, with the balance to be sold
through merchant sales. Operations are expected to begin by first-quarter 2010 and provide
approximately 100 new jobs.

May/June 2009

The Carpet America Recovery Effort™ (CARE) – a voluntary, joint industry and government group that
promotes carpet recycling and re-use – announced winners of the Environmental Protection Agency
(EPA)/CARE Innovations in Recycling award, the CARE Recycler of the Year award and the CARE Person
of the Year award at its Seventh Annual Conference, held recently in Lansdowne, Va.

The EPA/CARE award – which recognizes innovative products containing post-consumer carpet
content or a process that diverts large amounts of post-consumer carpet from landfills – was given
to Dalton, Ga.-based Shaw Industries Group Inc.’s Evergreen Nylon Recycling Facility, and the Los
Angeles Fiber Co. and its president, Ronald Greitzer. Since Shaw acquired the Evergreen plant in
2007, the company has recycled more than 220 million pounds of post-consumer nylon 6 carpet and
more than 36 million pounds of post-consumer carpet filler, and has reduced fossil fuel usage
through the plant’s waste-to-energy processing. Los Angeles Fiber and Greitzer have recycled more
than 464 million pounds of post-consumer carpet since 2000, which is more than 40 percent of the
accumulated poundage of recycled carpet CARE has reported since it began collecting data in 2002.

CARE named Calhoun, Ga.-based Mohawk Industries Inc. Recycler of the Year, recognizing the
company for its GreenWorks Post-Consumer Recycling Center in Chatsworth, Ga., which converts
post-consumer carpet into engineered resins that can be used in a variety of products. In 2008, the
GreenWorks Center collected 15 million pounds of post-consumer carpet for processing into
thermoplastic nylons and other materials.

Brendan McSheehy, director of research and development for Universal Fiber Systems, was
named Person of the Year for his exemplary leadership on the CARE Board and for serving as chairman
on various CARE committees. McSheehy holds a patent for a method of cleaning and separating
post-consumer carpet face yarn, and he was instrumental in the development of Universal Fiber’s
ReFresh Fiber, which contains post-consumer content from recycled nylon 6,6 carpet.

In other group news, CARE has released figures from its 2008 annual report indicating a
decrease in the recycling and diversion of post-consumer carpet compared to 2007 levels. The report
revealed that in 2008, 243.4 million pounds of post-consumer carpet were recycled and 292.4 million
pounds were diverted from landfills – an 11.4-percent decrease in recycling and a 0.8-percent
decrease in diversion compared to 2007.

According to CARE Board Chairman Frank Hurd, the reduction was less than expected,
considering the current economic downturn and the negative business results reported by other
industries in 2008. On a positive note, new data collected for the first time in CARE’s 2008 member
survey revealed 1,100 industry employees are directly involved in carpet recycling, which
translates into an additional 2,200 indirect jobs created in local communities.

May 5, 2009

Taiwan-based Everest Textile Co. Ltd. – a vertically integrated textile company with yarn spinning,
twisting, weaving, dyeing, finishing and printing operations – reports it is the first company in
Asia to receive bluesign® certification for coating and lamination products. The bluesign standard
is a third-party international quality guideline that denotes eco-friendly production and textiles
as well as efficient use of resources.

Everest Textile’s coating and lamination products underwent product, environmental and
personnel safety tests to become certified. The company has installed devices to reduce pollution
such as gas gather equipment, soft curtains and exhausts in the laminating machine and stirring
areas where solvent evaporates or odors are emitted. Everest also has created the dimethyl
formamide (DMF) circulation system, which allows DMF solvent to be recycled and reused, thereby not
polluting the environment.

In 2007, Everest Textile launched its Everest Sustainability Model initiative, which
includes strategic measures to save energy, reduce waste, and meet the goal of zero emissions at
its three plants. Everest officially became a bluesign partner in May 2008. The company currently
has 22 product lines and 935 products that are bluesign-certified, and its plants in Shanghai and
Thailand are undergoing bluesign screenings.

May 5, 2009

Winston-Salem, N.C.-based innerwear, outerwear and hosiery apparel manufacturer and marketer
Hanesbrands Inc. will reduce its corporate management and US distribution workforce by 500 people
in an effort to cut costs and weather the current global economic downturn.

The layoffs will impact approximately 200 management employees based in Winston-Salem, 30
located elsewhere in the United States and 20 outside of the United States. Citing decreased
product volume, Hanesbrands also will lay off 40 employees from its Annapolis Drive distribution
center in Winston-Salem and expects to shutter the center by the end of 2010, letting go the
remaining 200 workers. The company also will cancel its contract with a logistics firm that
operates a distribution center in Jacksonville, Fla., by the end of 2010, affecting 10 employees.
Products currently distributed through the centers will be moved to Hanesbrands’ distribution
centers in Martinsville, Va., and Perris, Calif.

Hanesbrands will provide affected employees with severance and outplacement benefits.

April 28, 2009

“What is your best price?” This question is as old as mankind. In times of a rough market climate,
the question seems to be even more obvious. But is it really so?

As

Textile World
reported last week, IMB took place in Cologne, Germany, April 21-24. In view of the current
economic situation, there were obviously fewer visitors. However, IMB is still the world’s
number-one show and the most important trade fair for processing all kinds of textiles. The trend
toward verticalization is more prominent than ever. The whole production chain must know what the
upstream and downstream links in the chain are doing. “Simple” apparel information is not enough
any more. (
TW
will refer to this trend in the next Rupp Report.)



Mixed Emotions At IMB

Some exhibitors from Europe and the United States were quite happy with the show and had a
hard time handling all the visitors. On the other hand, it was quite remarkable to see that mainly
Far East exhibitors had a hard time too, but rather with no visitors during the show. And, as it’s
been since 2003 – who is shouting ITMA Birmingham? – there were some companies present at the show,
but also some absent.

The French company Lectra, a global leader for machinery and software for the apparel and
technical textiles industry, was present with a 500-square-meter booth, and the stand was crowded
during the whole exhibition. Lectra invited some journalists to an evening presentation to discuss
the market situation and the future of the global textile industry.

The Market Position Is The Determinant

Lectra CEO Daniel Harari gave a remarkable opening speech. In his presentation, he mentioned
that every company has to evaluate first its position in the market: “Low-value products are always
under pressure. There is always another one with a lower price. If you produce high-quality
products, and you can convince your customer with the added value of your products, you will make
more money.” Then he asked himself if the lowest price is always the best price, and the answer
came promptly.



Do You Want To Make Money?

“Well,” Harari said, “first of all, you have to believe in the future. If you don’t believe
in it, you will not invest. So we always ask our customers, do you want the lowest or so-called
‘best price,’ or do you want a return on your investment? The question, ‘what is your best price?’
becomes obsolete if the equipment is fine-tuned to the requirements of the customer. The best or
lowest price is usually not the best solution, and definitely not in hard times. When the market is
booming, you can sell anything. But in hard times, every customer wants the best product for a
competitive price. And to be competitive means to have the right equipment. One should always
strive for the best equipment for his production to make money. And that’s what we all are here
for. Without any profit, every company will go down the drain. How do you want to further invest,
if you don’t make money?”

Let

Textile World
know if you agree or not with this statement. We’ll be happy to see your comments. Write to
jrupp@textileworld.com.

April 28, 2009