Valve Magazine - Summer 2011

INDUSTRY CAPSULES

Case Won Against Two Counterfeiters

THE VALVE WORLD WON A MAJOR VICTORY IN MAY when a Chinese court handed down criminal sentences and steep fines to two companies and managers for counterfeiting a brand of valves sold by The Weir Group PLC.

The counterfeiters were arrested by China’s Public Security Bureau in late 2009 following in-depth investigations. The defective fake valves quickly failed after being put into service at Chinese power stations, causing injuries and damages.

The case was tried in the Yangzhou Intermediate People’s Court, Jiangsu, China in December of last year where the prosecution was able to prove the products used were counterfeit, failed to comply with compulsory national standards and were of poor quality. The defendants misrepresented the location of their manufacturing facilities by telling customers they were imported from the UK. The counterfeiters had generated RMB 11 million (over $1.6 million).

The companies—Yangzhou Yikai Machinery and Engineering Co., Ltd. and Shanghai Saimeng Mechatronic Engineering Co., Ltd.—were handed unprecedented amounts of fines and their managers were given more than 15 years each in prison sentences.

Alan Mitchelson, legal & commercial director of The Weir Group, said: “It has taken us more than a year of perseverance, but the outcome of this case is reassurance to our employees, customers and shareholders that the unauthorized use of our trademarks will not be tolerated. Such high fines and long criminal jail sentences are very rare in China for intellectual property crimes. The Weir Group greatly appreciates the support of police, prosecutors and courts in China who have taken resolute enforcement actions against these counterfeiters including the seizure of these defective, counterfeit products.”

MARKET FOCUS

Industries See Higher Sales for 2011

Of the 23 industries Global Spec talks to each year for its annual economic survey, 20 reported they expect to see improved conditions for sales into 2011. Overall, economic indicators are more optimistic than they have been in several years.

The survey, which queries engineering, technical, manufacturing and industrial professions in the U.S., found that well over half (55%) anticipate sales to be up while only a quarter (24%) say sales will be down. This is a measurable improvement over last year, however, when only 47% anticipated increased sales and 26% expected declines. Also, only three of the 23 industries had fewer respondents expecting higher sales in 2011 than in 2010. Meanwhile, departmental budgets are increasing with 30% of engineers and technical professionals saying they expect more money compared to just 18% in 2010.

Some of the industries where valves are used are included in the chart at right.

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