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

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 

   
 

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-Guitar Hero is all the rage for consumers.

-Need to take a break from searching for the latest gear during The NAMM Show? Here are some celebrity appearances and parties to check out.

-Attendance increased at Music China and Prolight + Sound, and Kenny G made a big splash.

-Improving next month's NAMM Show is like making the 1972 Miami Dolphins better. But NAMM is certainly not resting on its laurels.

-We reveal all of the manufacturer nominees for Music & Sound Awards to be handed out next month at The NAMM Show.

-Counterfeiting on MI products, particularly guitars, may have received minimal national press, but the problem is real and not going away.

-Find out how to sell products your customers are probably not looking to buy.

-M&SR features its second annual independent retailer roundtable. What's on dealer's mind's this year. Are things better than last year?

-Females playing musical instruments now outnumber males, according to a NAMM/Gallup survey.

-Industry leaders paved the way for the next 10 years.

-The Latest, Industry, Dealers, People and Product Buzz and Showcases.
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-Dan Vedda shares every thought not appearing in his monthly column right here.
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COLUMNS
-Robert Gault, president of Eminence Speaker, knows a massive amount about China and the pro audio industry. Enough said.

-To say Kurt Ballou, Converge's guitarist, doesn't treat guitars well is like saying the New England Patriots are a decent football team. Ballou had to find a guitar to take a pounding. Here's why he chose First Act's Sheena.

-The amazing story of how Gear Source Music reopened days after a flood took it apart. Spy ventured to the Pacific Northwest to the great city of Seattle. Five minutes with a great wealth of knowledge in the percussion industry, Remo Belli.

CURTAIN CALL
-John Flansburgh, They Might Be Giants' John Flansburgh is a big fan of several independent dealers as well as a host of manufacturers.
-Matt Rubano, the bass player for the red-hot band Taking Back Sunday. Even better, he likes to shop for MI gear.
-Paul English, Willie Nelson has had four wives in 40 years, but only one drummer in that same time frame.
-John 5, When your name is a number, you must be cool. John 5, who played with Marilyn Manson and Rob Zombie, says idolizing Eddie Van Halen was a big mistake. How is that possible?
-Luke Pritchard
may be “all together Kook-y,” but he has cool memories from the days he visited retail stores.
-Eddie Ojeda; Lead guitarist for Twisted Sister.
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Will Lee; Getting that gig isn’t easy and took a lot of blood, sweat, and tears.
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Imogen Heap writes songs, plays piano and the nail violin,Does she plan to design her own instrument?
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DJ TIMES / DJ EXPO
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CLUB SYSTEMS INT'L
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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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