SPECIAL: PRO AUDIO
May 15 2007
VOLUME 24 NO.5

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 

   
 

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-Table of Contents
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FEATURES
-Talking Heads: Top Industry Executives Take On Top Topics Fourteen of the industry’s heavyweights tackle two big MI questions.
-The Big Bash in Nash After a successful return to Nashville last year, Summer NAMM is back in the Music City. Find out why you should attend.
-The Good, the Great, the Fantastic! Even though times are awful, many manufacturers step up to the plate by providing charitable efforts, great fan experiences, and more.
-Crank up the Volume! Find out how pro audio manufacturers are doing during this elongated recession.
-Peavey, 16 Others Win Landmark Trademark Case Vs. Fender In a huge body shape decision that can affect our industry for years to come, the Trial and Trademark Appeals Board ruled against Fender.
-Comic Genius Normandy Guitars has employed a very different marketing approach. Find out what it is..
-The Forgotten Few MI could not operate without the service industry. However, the vital industry segment has never received its due. Until now that is.
-The Economy is Awful! Guitar sales are down, but they are holding up just fine in perhaps the worst economic crisis of our lives.
-Class of 2009 Plenty of new companies exhibited at NAMM in an effort to get their products into your stores. Michelle Loeb rounds up the newbies and tells you why the products are cool.

-The Latest, Industry, Dealers, People and Product Buzz and Showcases.

COLUMNS
-The Music & Sound Independent Retailer A former navy pilot turned music store owner? Yes, it’s true as we feature Blues Angel Music in Pensacola, Fla. Also, want indy-friendly brands? Chris Lovell features three: Crafter, Tanglewood, and Godin.
- Birth of a Product Your customers can now hang guitars in their closets thanks to one man: Chris Samu. His Guitar Hanger ships this month.
- MI Spy Will Spy find it easy finding a guitar in the Big Easy? Only one way to find out.
-Five Minutes Ron Manus and Bryan Bradley of Alfred Publishing give us a complete rundown about the publishing industry and MI in general.
-Sales Guru Gene Fresco describes the AIDA approach to sales? The what? Trust us, it’s good info.
-VeddatorialGood economy or bad, Internet competition or not, you must know good, old-fashioned sales techniques to be successful today.

FORMIDABLE FEMALES

-Melanie Ripley Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Susan Grund Grundorf Corp. Vice President Susan Grund handles a plethora of duties at her job, but she also has jammed with the Beach Boys and makes sure the bond with the company’s employees remain strong. Learn how she juggles everything at one time and changes she’s witnessed in MI.
-Toby Nady graduated from college with a degree in clinical psychology. What does that have to do with music? Nothing. It’s been a long, strange trip for her. But a very good and successful trip.
-Shawna von Behren has prepared herself to work for the company since she was 4 years old. Here’s why working for an Illinois retailer was so instrumental in her success.
-Berenice Chauvet speaks four languages. And that doesn’t include the language of music. We forgot to mention she was formerly a reporter. There’s a lot of information for this story!
-Sue Kincade, Find out what it takes for Sue Kincade to captain the ship that is Remo Inc.
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp

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U.S. Court Upholds Ace Suit Against Guitar Center
[May 2007 - Page 1]

U.S. District Court judge Marcia G. Cooke upheld all but two motions in a $1 billion lawsuit filed by Fred Rubin, formerly the owner of Ace Pro Sound & Recording in Miami, against Marty Albertson, CEO of Guitar Center; GC itself; and seven manufacturers. The ruling came on April 1, exactly one year after the lawsuit was filed.

The two counts dismissed alleged Albertson partook in a “pattern of extortion activity in violation of the Federal Racketeer Influenced and Corrupt Organizations Act of 1961, (known as RICO), and the Hobbs Act of 1951.”

However, the other charges will be allowed to proceed. These claims, made by Rubin and a class-action group of retailers, include allegations Albertson took part in “unconscionable acts and unfair trade practices—that defendant Albertson coerced and otherwise induced the supplier defendants to refrain from dealing with the plaintiff—in violation of the Florida Deceptive and Unfair Trade Practices Act;” that Albertson violated Florida law for “tortious interference with business relationships between Ace Pro and the supplier defendants;” that Guitar Center “coerced and otherwise induced the supplier defendants to refrain from dealing with the plaintiff;” that a manufacturer “breach[ed] a contract to supply the plaintiff with certain music-related products;” and that three manufacturers violated Florida law “based in the equitable principle of promissory estoppel for reneging on a promise to supply the plaintiff with certain music-related products.”

In all, 24 counts were allowed to proceed. It’s important to note, however, that Cooke’s ruling does not in any way mean the defendants are guilty of any wrongdoing. It simply means there is sufficient evidence to take the claims to the next step.

So what is the next step? “The next thing that’s looming is our motion for class certification,” said Michael L. Feinstein, Rubin’s attorney. Before such a motion can be filed, Feinstein said he is actively soliciting the largest class-action firms in the country, including Boies, Schiller & Flexner, and Milberg Weiss & Bershad, to serve as co-counsel, due to the large scope of the case. Feinstein defined the class-action group as “those people who have potentially been damaged as a result of Guitar Center and other suppliers price fixing, boycotting, attempted monopolies, Sherman Antitrust Act [of 1890] violations, etc.” Feinstein added that as for the two counts that were dismissed, since Cooke did not dismiss those claims “with prejudice,” he is allowed to amend those claims. Feinstein said he and Rubin have not decided if they will amend the two dismissed counts however.

Although Rubin is alleging price fixing as part of his lawsuit, Feinstein stressed this lawsuit is in no way was a predecessor to, or in any way related to alleged price fixing the U.S. Federal Trade Commission is investigating in MI. “It was a surprise to us [when we heard about that investigation],” he said.

Margaret (Peggy) M. Zwisler of Latham & Watkins, GC’s counsel, said GC had no comment about the ruling.
[end]

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