Jordan Flew To Sue For Infringement Or Suspension Of Jordan's Sports Listing

In February 23rd, NBA star Michael Jordan issued a statement through the newsletter that he had filed a lawsuit with the Chinese court and sued. A shares Jordan sports (micro-blog) infringed on his right to name. Jordan He also said he was deeply disappointed with the behavior of Chinese companies and said that "litigation is not a question of money".

According to the press release, Jordan's image and brand are widely known in China. Jordan Sports The Limited by Share Ltd was authorized to use it without permission, and registered the names of its two sons. Jordan said he wanted to maintain his name and brand Ownership.

At present, Jordan sports A shares have been successful, but the voice of its trademark infringement questioned.

In the Jordan sports prospectus, the company specifically pointed out the potential risks of trademarks and trade names, and actively ignored the relationship with Jordan, claiming that the Jordan brand had nothing to do with flying Jordan. Jordan did not present any rights and claims to the company on the issue of registered trademarks.

But Jordan sports even registered Michael Jordan's two sons, Jeffrey Jordan and Markus Jordan. In addition, Jordan sports has also registered an associated company called "Lakers sports", which has been cancelled.

Jordan sports also compares with Nike company in the prospectus, and thinks that its AirJordan product is different from Jordan brand, and there is no potential dispute.

Wang Dong, a lawyer of Beijing strategy law firm, told reporters that in 2000, Jordan sports began to use Jordan as its trade name and trademark, misleading and deceiving a lot of famous American basketball stars MichaelJordan and sports related consumers. Jordan sports is famous for its rapid growth and competition.

Wang Dong believes that Jordan sports trademark disputes may lead to its suspension. list 。 In addition, with Anta, PEAK and other brands in Jinjiang unanimously choose to go overseas, only Jordan sports wants to become the first sporting goods listed company in A shares. If the United States law, Jordan sports will constitute infringement, the choice of domestic listing is largely to avoid legal risks.

In addition to trademark infringement, Jordan sports has increased substantially in recent years. The prospectus showed that at the end of 2009, the stock of the company was 282 million yuan, rising to 380 million at the end of 2010, increasing by 34.86%, and further increased to 512 million yuan at the end of June 2011, with a growth rate of 34.79%. Compared with the end of 2009, Jordan sports inventories increased by 82% at the end of June 2011.

In this regard, the company explained that the main reason for the increase in inventories is "the continuous expansion of production and sales scale". {page_break}

The prospectus also showed that the significant increase in Jordan's sports inventories in the first half of 2011 was due to the growth of processing materials exceeding 1 times, reaching 167 million yuan at the end of June 2011 and occupying 1/3 of the total inventory.

Jordan sports said that most sportswear and a few sports shoes in the company are produced by outsourcing manufacturers. If the factory's production capacity and processing technology fail to meet the requirements, it will lead to product supply delay and quality degradation, which will affect the company's business performance.

With the increase in Jordan's sports inventories, accounts receivable also increased significantly. At the end of June 2011, accounts receivable reached 584 million, up 51.82% from 2010 at the end of 2010. The turnover rate changed from 28.19 times per year in 2008 to 7.04 times in the first half of 2011.

Jordan sports explained that the company accounts receivable mainly for the receivable dealers, in order to help dealers have more funds to invest in the market, accelerate product sales and reduce inventories, the company's appropriate refund to dealers, resulting in increased accounts receivable.

According to the prospectus, Jordan sports accounts receivable is basically a one year period, of which less than 3 months occupy more than 90%. In this case, the company sold 1 billion 158 million yuan in 2008, accounts receivable was only 41 million 90 thousand yuan, accounting for 3.5%, while in the first half of 2011, the revenue was 1 billion 700 million yuan, accounts receivable was more than 580 million yuan, accounting for 34%.

Dealer shop is the most important part of Jordan sports sales network, accounting for the overwhelming majority of its brand stores. Jordan sports said that the company has the overall risk of relying on distributors.

It is noteworthy that the sports apparel industry is very sensitive to the trend of the industry. Jordan sports claimed that the trend of fashion was changing rapidly. The sales time of the season products was relatively short. If the market demand can not be grasped, the current sales volume will be reduced and the inventory will be overloaded.