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Sharp To Americans: You Don't Want to Buy a Sharp-Brand TV (wsj.com)

Sharp has sued China's Hisense Electric, which licensed the Sharp brand for televisions sold in the U.S., accusing Hisense of putting the Sharp name on poor-quality TVs and deceptively advertising them (alternative source). From a report: The court action is the latest effort by Osaka-based Sharp to retrieve the right to use its own name when selling TVs in one of the world's largest markets. Sharp is trying to recover its position as a global maker of consumer electronics. Hisense rejected the allegations and said it was selling high-quality televisions under the Sharp name. The dispute illustrates the risks when the owner of a well-known brand name gives up control over products sold under that name.

18 of 115 comments (clear)

  1. Hit to the brand by TWX · · Score: 5, Insightful

    Maybe if they didn't want their brand to take a substantial hit, they shouldn't have licensed it out.

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    1. Re:Hit to the brand by Austerity+Empowers · · Score: 4, Interesting

      This falls into the no-shit category, but let's wait for the PRC trolls to come and explain to us that we're mistaken about low quality products being made in China, and utilization of that particular business model being an epic mistake. I say this having been a designer of electronics, having seen what their factories do and just how difficult it is to keep them on task and pulling shady ass shit we explicitly asked them not to do. I cannot imagine how bad it is when you give up all control.

    2. Re:Hit to the brand by TWX · · Score: 2

      Then they don't have a lot of room to complain about their deal-with-the-devil unless the contract specified the nature of the quality of the final products in ways that can be objectively measured and quantified.

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      Do not look into laser with remaining eye.
    3. Re:Hit to the brand by leathered · · Score: 5, Insightful

      My favorite tale of Chinese manufacturing is that factories making genuine products for Western companies have been known to put on extra shifts to turn out knockoffs, using the same machines and tooling that the Western company has paid for. I recall a significant number of fake Cisco products were found to be made in the same factory as the genuine stuff.

      Handing your blueprints over to counterfeitors as well as paying for their machines is an almost comical way of slitting the throat of your business.

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    4. Re:Hit to the brand by Ken_g6 · · Score: 4, Interesting

      Maybe if they didn't want their brand to take a substantial hit, they shouldn't have licensed it out.

      At the time, I gather from another article, Sharp was hard-up for money. They've since been bought out...by Foxconn. Pot calling the kettle black, much?

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    5. Re:Hit to the brand by Lisandro · · Score: 2

      This happens with pretty much every Chinese-manufactured product nowadays. A quick trip to AliExpress will find you nameless versions of well-known products for literally half the price.

    6. Re: Hit to the brand by mschwanke97402 · · Score: 2

      Reminds me of the Chinese proverb: A capitalist will sell you the rope you use to hang him.

      That is so 19th century. These days, the capitalist will, at the behest of the Government, charge you a fee for use of the rope with which you, yourself, is hanged.

  2. Hisense USA is actually not horrible... by jhaygood86 · · Score: 2

    I have 2 Hisense TVs (Hisense branded, not Sharp branded). My Smart TV that I purchased failed (the LED backlight stopped working), and they replaced it with a brand new much better model with no issue under warranty when it was almost 2 years old. The replacement was made in Mexico, not China, even. Hisense USA is based in Atlanta (Suwanee GA), not China, though their parent company is Chinese.

    1. Re:Hisense USA is actually not horrible... by sl3xd · · Score: 4, Insightful

      Hisense USA is based in Atlanta (Suwanee GA), not China, though their parent company is Chinese.

      All that means is that there's a shell company that imports drek from China, handles local customer disservice and warranty non-fulfillment.

      Nearly every multinational company does the same thing -- Apple's Ireland shell company has made a lot of news lately as a tax haven, IIRC. That doesn't make Apple an Irish company.

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  3. Sharp gear was always crap anyway.... by Ellis+D.+Tripp · · Score: 3, Informative

    It sure did pay the bills back in the '80s when I worked in TV/VCR repair. The TV sets regularly caught fire when the flyback transformers carbonized (prompting a class action lawsuit and a huge settlement), and their VCRs were a constant source of mechanical issues, far worse than most of the competition.

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  4. Article is paywalled by L.+J.+Beauregard · · Score: 2, Informative

    and I'm not giving my money to Rupert Murdoch.

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  5. Re:Sharp never had quality by Anonymous Coward · · Score: 3, Informative

    Horse puckey. Sharp had a number of quite nice products over the years which were ahead of their time. If you ever had one of those TRS-80 pocket computers, you were running a Sharp device and didn't even know it due to the cross branding.

  6. Tough. Suck it up Sharp. by Viol8 · · Score: 3, Insightful

    You sold the rights to your name to make a quick buck, now stop whining when someone uses it in a way you don't like. If you wanted your name only to be associated with good (ok, reasonable) quality gear you should have kept it in house.

    1. Re:Tough. Suck it up Sharp. by thegarbz · · Score: 2

      If you wanted your name only to be associated with good (ok, reasonable) quality gear you should have kept it in house.

      That is 100% dependent on the terms of the license. You understand that word right? License? Not sale. They don't own the brand, they just have a license to it.

  7. Re:HiSense = Low Quality by Lisandro · · Score: 2

    That's debatable. I have a 40" HiSense TV at home which i paid US$220 for and i have zero complaints about its quality. The panel itself looks the same, if not better than any Sharp 40" offering at about twice the price.

    Anyway, didn't Sharp licence its brand name to HiSense?

  8. Honestly by Lucas123 · · Score: 2

    I didn't know Sharp still made televisions.

  9. Re:Why would you buy from them by sl3xd · · Score: 4, Informative

    Sharp was a top tier brand -- Sony and Sharp co-funded an LCD panel factory, and Sony TV's used Sharp's LCD panels. (The whole reason Sony was involved in the factory is because they wanted Sharp's LCD panels).

    The problem is that Sharp happened to buy the factory just before the housing crisis -- and the market for new TV's vanished overnight. If you took any time to look outside the world of the PlayStation, you'd see that Sony had some serious problems selling their TV & home theatre products during the same period.

    With nobody buying, Sharp was unable to sell their own TV's, or LCD panels to Sony. State-sponsored/funded Chinese companies swooped in as the market was picking up again, and Sharp wasn't able to recover.

    So yeah... Sharp was unlucky in its timing of building a factory, and the PRC's government decided it was in their interest to spend government money to bankrupt a foreign company. Nothing new about either of those things.

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    -- Sometimes you have to turn the lights off in order to see.
  10. Sharp have no reputation by Jerry+Atrick · · Score: 3, Interesting

    Can't remember when Sharp had a reputation worth defending but it wasn't this century! Here in the UK HiSense is now a more respected brand than most Japanese brands that went down the licencing cheap foreign factory built crap route long, long ago.