Hayes Bicycle Group and Muchachos International (parent company of FUNN) have finally settled a long-running string of lawsuits involving both civil and criminal charges in Taiwan and US.

Muchachos has a big industrial facility in Taiwan and produces raw components for big companies like Chrysler all the way down to Hayes, who enlisted Muchachos to handle all the overseas construction of their disc breaks.

Muchachos, in a shrewd business move, trademarked the Hayes name in Taiwan. At the same time they released a line of hydraulic disc brakes under their FUNN brand, which as anyone will tell you, looked exactly like Hayes brakes (because they were).

When the relationship between Hayes and Muchachos subsequently fell apart, Muchachos was able to block Hayes from using their name on any brakes they had manufactured in Taiwan, and since Taiwan is the only place you can make cost-effective bike components like that, Hayes was "up shits creek."

With no other options Hayes attempted to acquire Muchachos, but their owner Lynn Miles refused. This is when the lawsuits started flying. Mr. Miles is a shark and has done quite well for himself over the years - well enough to amass a collection of vintage army tanks on Vancouver Island (true story). Suffice to say he had no interest in selling to a competitor at a cut rate and thats when things got ugly.

After years of litigation they two have finally come to an agreement. Although the press release sheds no light on exactly what that agreement is - both companies have officially denied any wrongdoing.


via Bicycle Retailer