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Hezhong Vs IIR-The Organizer of Middle East Electricity Exhibition 2004 in Dubai
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2004-2-16
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China Vs Europe
We are in Dubai for the Middle East Electricity Exhibition, which runs from 15th to 18th Feb 2004. Our story is as follows:
Our reason for visiting is primarily to set up a large distributor and seek development opportunities in the Gulf Region. We set up our stand in Hall 7 on the 14th of Feb and began the trade show on the 15th Feb without any problems. On the 16th Feb, the events organizers (IIR Exhibitions from the UK) closed our stand along with 3 other stands because complaints were received from large European Manufacturers that our companies were attempting to trade in counterfeit goods. Security Guards approached us while we were conducting business dealings and asked us to vacate the stand, after which they barricaded the area and told us we were not to touch anything including private belongings (as if we are criminals), they then said that everything in the stand will be destroyed (This is our 1st visit to Dubai and have never experienced such treatment from even Nigeria and Mozambique where we exhibit), After several heated arguments we were told the following:
- We are under investigation for exhibiting Counterfeit goods
- The complaining companies (who are still unknown to us) have sent their official complaint to the Economic Dept.
- We will receive further instructions at 10:00 am on the 17th Feb (Tomorrow Morning)
- We were told that this is the first time that this events company had felt the need to close down certain stalls (without prior warning)
- We were then told that we had to vacate the premises all together and hand in our exhibitors badges, if we did not comply, we would be arrested (we were threatened numerous times).
- We still have not received any official documentation or communication with those who have complained about our products displayed, or any documentation with an explanation.
We cannot answer for the other 3 companies but we certainly can for our selves. We do not trade counterfeit goods. The Events organizers stated that the complaints were made by companies such as Schneider Electrical who sent their “Product Specialists” to our stand. We do not recognize biased opinions from companies who feel they are authorities in the industry or who will do anything to keep us out of their precious gulf market. We are shocked at this treatment and have decided to take evasive action. Some of Dubai’s top attorneys have been contacted as well as the Chinese Foreign Ministry and the Embassy of China based here in Dubai. We have also received confirmation from 2 local Chinese Newspapers who will send reporters to cover the matter. I am requesting the presence of one of your business reporters as we feel that this may be the first time that a small Chinese company will refuse to back down. We know we are selling legally in South Africa and China since we have already fought and won the court cases against Schneider Electric and the likes almost 5 years ago.
Our position as follows:
- European companies here in the Gulf Region will attempt to restrain any trade between The UAE and China because of the price upset that is looming in the market place.
- With legal confirmation, we will sue the event organizers for lost opportunity cost, deformation of character etc.
- We will require explanations on the legality (or illegality) of the procedures in which this matter was handled.
If we are trading in counterfeit goods, why then were we asked to leave two and a half days after we unpacked all our product displays? Why not rather when we unpacked? Do companies have such a strong hold on the UAE chamber of commerce to create such barriers to entry? At what level does the UAE require trade with the largest manufacturing economy in the world at present? I.e. The Peoples Republic of China.

Hezhong Vs IIR Exhibitions
18th Feb 2004 Tuesday 17th Feb 2004
- Made contact with a lawyer – Mr. Edward Hardcastle of Rouse & Co International – who specializes in intellectual property rights.
- Met with lawyer at the World Trade Center (location of exhibition) in Dubai at 09:00 am and discussed our case.
- Were meant to meet the event organizers as per their instruction at 10:00 am for further discussions and some clarity regarding the closure of our stand.
- Sarah Woodbridge (Events Director based in London, UK) eventually turned up at 10:25 am and our case was presented to her.
- Her instruction was that Mr. Kevin Harris (Dep. Chairman of the International Counterfeiting Committee and International Sales Manager of Eaton Electrical) is to meet with us. The complainants assigned him as their legally appointed representative.
- The lawyer was invited into the office of Mrs. Woodbridge at 11:15 am to meet with Mr. Harris and his cohorts of complainers in an attempt to compromise the situation, understand their argument, assess the strength of their case and present Hezhongs demands.
- After a considerable wait we were given the name of the lawyer who would represent the complainants case, at this time (around noon) the complaints were being filed at the Department Of Economics.
- Approximately 12:45 pm a meeting took place between Mr. Harris and Mr. Chris Williams (Marketing Manager of Focus Connection, a Hezhong branch and distributor in Johannesburg, South Africa, and spokesman for Hezhong) supervised by Hezhongs lawyer, Mr. Hardcastle. The intent of the meeting was to reach a compromise between Hezhong and the Manufacturing Companies who complained about Hezhongs supposed infringement of their Copy Rights. The following list of brands were supplied by Mr. Harris as those who claim Hezhong are counterfeiting:
- ABB (ABB) – Circuit Breakers
- Merlin Gerin (Schneider Electric Group) – Circuit Breakers
- Telemachenique (Schneider Electric Group) – Contactors
- MEM (Eaton Electrical) – Distribution Boxes
- F & G (F & G) – Circuit Breakers
- Hager (Hager) – Circuit Breakers
An interesting point to note is that Hezhong only produce two ranges of Miniature Circuit Breakers, yet four (4) companies are arguing the fact that Hezhong are infringing on their intellectual property rights.
A proposal was provisionally constructed to allow the manufacturers to “Point Out” those products they felt were infringing & Hezhong would remove the items (at this point, the major objective was for Hezhong to attempt to regain ownership of their stand, hassle free and be allowed to trade with visitors). Mr. Harris then left the meeting to discuss this matter with the complainants.
- In the interim, it was discovered that the manufacturers and Mr. Harris had inspected the Hezhong stand without and supervision from Hezhong or their legal representatives.
- At 15: 30 our demands were revised (after the discovery) as follows:
o The various manufacturers must supply
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