HARRIS Tweed Textiles, based on the Hebridean island of Lewis, last night hit back at the Harris Tweed Authority's legal proceedings against it as "disgraceful".
Professor Derek Reid, chairman of Harris Tweed Textiles, dismissed the HTA's application in Edinburgh's Court of Session for an interdict against it as both "naive and misguided".
The authority, which represents the Harris Tweed industry, believes that Harris Tweed Textiles and Coats UK, trading as Rowan Yarns, have taken "unfair advantage" of the reputation and goodwill attached to Harris Tweed, and that registered marks have been infringed.
Reid said his company, which employs 10 full-time staff and is looking to expand this year, received a letter from the HTA's solicitor, Burness, telling the company it had breached various legal constraints.
However, he claimed that when he wrote back requesting a meeting, one was denied.
Reid said he was told that either the company would have to accept the complaint and comply, or go to court.
"We believe we have done nothing wrong, " he said, adding: "When we sell Harris Tweed, we identify it clearly as Harris Tweed."
In order to qualify for official Harris Tweed status it has to be hand woven. Most Harris Tweed is actually made in neighbouring Lewis, where it is woven by crofters in their homes.
The weave then gets sent to textile mills for finishing, before being stamped by the HTA.
The authority, which gets royalties from its official product, objects to the company producing a knitting yarn called "Harris Yarn", which is not officially stamped.
Asked whether the company was misusing the Harris Tweed brand, Reid said: "We called it Harris Yarn, which is a generic term and is not restricted."
The HTA claims the yarn, which is supplied to Coats' subsidiary Rowan, is also sold through the company's website.
Reid refuted this, saying the company only sells Harris Tweed on its website and that no yarn is sold online.
The chairman, a former chief executive of the Scottish Tourist Board, insisted the company would "vigorously defend" any legal action.
Harris Tweed as a product has been in decline for 40 years - sales of the product are currently one-tenth the size of 40 years ago.
Reid pointed the finger at the HTA's role in the decline of the industry, saying it had not been proactive enough in adapting to competition in the global textile industry.
He said: "Rather than attacking a successful company like ours, it ought to be putting its own house in order."
In comparison, Reid noted that Donegal Tweed has thrived by diversifying into other products, such as mohair.
Asked why he thought the HTA was bringing the action now, Reid accused the publicly-funded body of "jealousy" at the success of his company.
He added: "I don't think they can stomach our success. I think there's a bit of jealousy here."
He then attacked the HTA's chief executive, Ian A Mackenzie, saying: "The chief executive is not a businessman, he's a bureaucrat.
"We have an authority which is anachronistic, out of tune, and out of touch.
"I can't understand how they have the arrogance, or the hubris (to take legal action) without coming back to one of its own members for discussion first."
The Western Isles has one of the highest unemployment levels in Scotland.
Reid added: "The last thing they (the area) want is 10 people to be thrown out of a job because of the bully-boy tactics of the Harris Tweed Authority."
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