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http://www.msretailer.com/
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The Retailer Online
THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS
now has a huge gig at Steinberg.
Find out about the software
industry, why Yamaha bought the
company, and how philoso- phies
Oct 15,
2009
are so
different in Japan, Germany,
and
theNO.09
United States.
VOLUME
26
-Sales Guru: Santa Claus IS
coming to town. Find out why Gene
Fresco is optimistic.
in any collusive
efforts.
-Veddatorial:
DanHowever,
Vedda explains
to go after
the millions of
discussed how
at NAMM
shows.
consumers who want to play music.
second annual edition is another
claim NAMM directly participated
fun read.
the wrongdoings may have been
-Publish or Perish! In this
economy, small, high-margin items
According to the lawsuit, “NAMM became the perfect conduit in
are always great to stock. How
which MAP pricing could be discussed…Defendants engaged in illegal
about publishing products? We get
FEMALES
behavior at NAMM and outside of the trade FORMIDABLE
show.”
the latest info from four
heavyweights.
-Stacey Montgomery-Clark Find
-Talking Heads: Top Industry
how SABIAN’s
Stacey
As for allegations against Guitar Center, theout
lawsuit
states:
“Guitar
Executives Take On Top Topics
Montgomery-Clark juggles two
Center frequently demanded and received preferential
and
Fourteen of the industry’s
young boys at home and a huge
heavyweights tackle two big MI
discriminatory benefits, promotional allowances,
financial
incentives,
job as vice
president
of marketing.
questions.
Shefrom
loves the
interactive
programs at
discounts, pricing, and other favorable terms
defendant
-The Big Bash in Nash After a
the company, most notably the
manufacturers with respect to musical instruments
and equipment
successful return to Nashville last
Vault Tour.
year, Summer NAMM is back in the
sold at its retail stores or through its online -Cathy
companies
its Duncan’s
Duncanand
Seymour
Music City. Find out why you should
catalogues…Guitar Center threatened retaliation if defendant
attend.
co-founder and chairman, received
manufacturers did not cooperate with Guitara ton
Center.”
-The Good, the Great, the
of on-the-job training. But
Fantastic! Even though times are
she has excelled. Creativity is one
awful,
many
manufacturers
step
up
of
the
The Music & Sound Award is the industry's most prestigious
The lawsuit defines the suing class as millions ofcompany’s
people. hallmarks.
The suit Find
to the plate by providing charitable
out much more about her.
award, and the only award basedefforts,
on agreat
pollfan
ofexperiences,
every and
seeks compensatory, actual, treble, and punitive
damages,
well
-Bee Bantug Yes, theas
Internet
more.
American dealer and manufacturer.
CAN“intentional
be your friend as
a retailer.
as an injunction preventing any future alleged
and
-Crank up the Volume! Find out
Bee Bantug, who has provided
malicious conduct.”
several NAMM University sessions,
VOTE TODAY! how pro audio manufacturers are
doing during this elongated
can help. That’s why she
recession.
co-founded
Retail Up!
in 2002.
The plaintiffs are represented by Barnow and
Associates,
P.C.,
-Peavey, 16 Others Win
-Dale Krevens For Tech 21’s Dale
Roberts
Law
Firm,
and
Harke
&
Clasby
LLP.
Landmark Trademark Case Vs.
Krevens, being vice president is not
Fender In a huge body shape
a job. It’s an adventure. Find out
VIDEO WEBCAST
For more information, see the November issue
decision that can affect our
why. of the Music & Sound
-First ever M.I. video webcast
industry for years to come, the Trial
-Melanie Ripley Believe it or Not
Retailer.
-Join the VnewsletterAnd the Bombs Keep Coming
and Trademark Appeals Board ruled
Formely worked for the NBA and
Guitar Center, Fender,
NAMM
Sued Again
against
Fender.
even answered Star Trek fan mail.
-Comic Genius Normandy Guitars
There's plenty of more things to
a very different
learn about Ripley and her NAMm
Another class-action lawsuit, this one filed has
by employed
lead plaintiff
Walter
From
the
Editor
The Music
&
Sound
Award
is
the
industry's
most
prestigious
marketing approach. Find out what
gig
Witherspoon, d.b.a. Racy Brothers Enterprizes
and Lil Walt
it
is..
-Susan Grund Grundorf Corp. Vice
award, and the only award based on a poll of every
Production, accuses Guitar Center, Fender, and NAMM of engaging in
NAMM
BASHING
IS
INSANE!
President Susan Grund handles a
American dealer and manufacturer.
VIDEO WEBCAST
plethora
of duties at her job, but
a “conspiracy
to
inflate
and
fix
the
prices
of
musical
products.”
ANYONE
CAN
SUE
ANYONE
FOR
ALMOST
ANYTHING!
-Jan. 15-17, 2009 NAMM 2008
she also has jammed with the
BUZZ
ConventionTV webcast
VOTE
TODAY!
Beach Boys and makes sure the
-The Latest, Industry, Dealers,
As I’m sure you’ve seen in our e-mail blastbond
or our
cover story,
Like- the class-action lawsuit filed on Sept. People
11, this
filed
with the company’s
and lawsuit,
Product Buzz
andOct.
Guitar Center, Fender, and NAMM have been
sued for
antitrust
employees
remain
strong. Learn
Showcases.
2, refers
to
the
Federal
Trade
Commission
(FTC)
allegations
put
TOC
how she
juggles
everything at one
violations. According to the class-action lawsuit
from
a lead
forth
against
the music instruments industry. NAMM settled with the
-Table
of Contents
time and changes she’s witnessed
Issue
plaintiff named David Giambusso, the lead inguitarist
of a band
FTC-Digital
earlier
thisDownload
year. The FTC settlement does
not admit any NAMM
MI.
COLUMNS
named Ann Courtney & The Late Bloomers,-Toby
the three
entitiesfrom
Nady graduated
-The Music & Sound
wrongdoing.
And
the Chris
Bombs
Coming
with a degree
clinical
Independent
Retailer
LovellKeep
allegedly
price fixed, causing the prices he college
and others
paid in
for
FEATURES
psychology.
What
does that have to
features twoGuitar
companies
he says are
Center,
Fender,
NAMM
SuedCenter
Againto rise.
guitars
at Guitar
Their Ownin that it accuses more defendants than the
This-Drumming
lawsuit istodifferent
do with music? Nothing. It’s been a
absolutely fantastic for the
BeatHow well is the drum industry
long, strange trip for her. But a
independent
retailer. Find
out which
three
we previously mentioned. Also
accused
of wrongdoing
Another
class-action
lawsuit,and
this one filed by lead plaintiff Walter
holding up during these difficult
very in
good
and
successful trip.
companies he selected.
I want to give an exact quote that baffled me
the
20-page
named
asWedefendants
were Peavey,
Roland,two
Gibson,
Bain
Capital,
times?
call on three industry
Witherspoon,
d.b.a.
Racy
Brothers
Enterprizes
and
Lil
Walt
-• Shawna von Behren.
- MI Spy: Spy loves barbecue food,
document. “Guitar Center has conspired with
NAMM to
control
C.F.experts.
Martin, Korg, Yamaha, Tascam,
and
TEAC.
According
to
the
suit,
-•
Berenice
Chauvet
baseball,
football,
and,
yes,
Production, accuses Guitar Center, Fender, and NAMM of engaging in
-Guitar Center, Fender, and
prices and exclude or destroy competition in
relevant markets
-• the
Sue Kincade
music.
There arefor
onlymusical
a couple of
the NAMM
defendants
“exchanged
sensitive
price
information
a “conspiracy to inflate and fix the prices of musical products.”
Sued
Tish Ciravolo
cities to match that
and engaged in other acts with the specific-•interest
to achieve
products
and agreed
to adhere to minimum
advertised pricing or
-The Health
of the Independent
-• Vikki Hayward
description. Kansas City, here we
monopoly power in the relevant product market.”
Dealer M&SR’s
minimum
resalefourth
priceannual
maintenance
agreements,
which
led
to
-•
Roxana
Ramirez
come!
Like the class-action lawsuit filed on Sept. 11, this lawsuit, filed Oct.
independent retailer roundtable
-• Susan Lipp
-Five
Alan Macpherson
increased
prices for consumers across
the to
country.
2, refers
theMinutes:
Federal
Trade Commission (FTC) allegations put
features a new twist. For the first
has gone all of the way from
Huh? NAMM is trying to control prices? Are they kidding? What
time, manufacturers, hand-selected
forth against
the
music
instruments
industry.
NAMM
settled
with
the
Toronto to Southern California and
benefit does it provide NAMM? Nowhere in the lawsuit or, for that
the retailers,
contribute
to thebecause it claims Guitar Center was
Thisbylawsuit
is also
different
FREE SUBSCRIPTION
now
hasyear.
a hugeThe
gig atFTC
Steinberg.
FTC earlier
this
settlement does not admit any NAMM
story.
matter, the FTC investigation do we find out
why NAMM
would
-Subscribe,
Renew,
Manage
Find out
about
the software
involved
in
a
“coordinated
and
collusive
effort
with
manufacturers
wrongdoing.
-Born In the USA! We feature
industry, why Yamaha bought the
want to price fix with Guitar Center, Fender- (who’s also named as
beginning
in approximately
manufacturers
who produce a 2001. In addition, this lawsuit does not
company, and how philoso- phies
ConventionTV@NAMM
a defendant in the lawsuit), or anybody else.
That’s because
majority of their products in the
are is
so different
different in Japan,
Germany,
This lawsuit
in that
it accuses more defendants than the
VIDEO WEBCASTS
United States. Why do they make
THERE’S NO REASON NAMM WOULD BE INVOLVED
IN THESE
and the United States.
-ConventionTV Online
three we previously mentioned. Also accused of wrongdoing and
products in the USA as opposed to
-Sales Guru: Santa Claus IS
ACTIVITIES. It makes no sense whatsoever.
- None.
Asian countries? Find out.
named ascoming
defendants
were
Peavey,
Roland,
Gibson,
Bain
Capital,
to town. Find out why Gene
-…And the Show Did Go On! The
ISSUE ARCHIVES
Fresco
is optimistic.
C.F. Martin,
Korg,
Yamaha, Tascam, and TEAC. According to the suit,
economy took a big bite of Summer
-download
archived issues
NAMM has thousands of independent dealers
as members.
Why
-Veddatorial: Dan Vedda explains
the defendants “exchanged sensitive price information for musical
NAMM in Nashville, but there were
how to go after the millions of
would
it
purposely
want
to
hurt
all
of
them
as
well
as
their
still bright moments.
products and
agreed
to
adhere
to
minimum
advertised
pricing
or
consumers who want to play music.
& SOUND
customers? These claims are frivolous and MUSIC
ridiculous.
And now
-Jockeying For Position How is
minimum resale price maintenance agreements, which led to
AWARDS
the DJ business holding up during
NAMM probably has to spend a lot of money
to defend itself?
-And the Winners are...
increased prices for consumers across the country.
these tough times? What’s the next
The Retailer Online
2 of 6
BREAKING NEWS
BREAKING NEWS
10/30/09 1:32 PM
Huh? NAMM is trying to control prices? Are they kidding? What
benefit does it provide NAMM? Nowhere in the lawsuit or, for that
matter, the FTC investigation do we find out why NAMM would
want to price fix with Guitar Center, Fender (who’s also named as
a defendant
in the lawsuit), or anybody else. That’s because
http://www.msretailer.com/
THERE’S NO REASON NAMM WOULD BE INVOLVED IN THESE
ACTIVITIES. It makes no sense whatsoever. None.
NAMM has thousands of independent dealers as members. Why
would it purposely want to hurt all of them as well as their
customers? These claims are frivolous and ridiculous. And now
NAMM probably has to spend a lot of money to defend itself?
Here’s an even “better” allegation put forth in the lawsuit: “During
the class period (2005-2007), NAMM was the industry’s vehicle to
control prices in the United States fretted instrument product
market.”
Are they serious? NAMM is the “cause” of this? Come on. Give me
a break. I attended the NAMM shows from 2005 to 2007. This was
not going on. And, once again, I allude to the fact that doing such
a thing would not benefit NAMM or the music industry in any way.
I spoke to NAMM CEO Joe Lamond at each of these shows. He is a
man of honor and respect. I can say without a shadow of a doubt
that neither he nor his staff would ever care to control prices in
the U.S. fretted instrument market. It was never discussed and
not even thought of.
Another question I keep asking myself is this: How would a
consumer know if he/she paid more than he/she should have for a
guitar? This seems strange. And here’s another question I have
pondered: Even if a consumer somehow knew they paid too much
for a guitar due to price fixing, why wait two years to file a
lawsuit?
This all smells rotten. Perhaps it’s someone looking to capitalize on
the claims the Federal Trade Commission alleged against the music
products industry. NAMM settled with the FTC earlier this year. The
FTC settlement does not admit to any NAMM wrongdoing. The FTC
concluded that there was no adverse effect on pricing in the
marketplace.
Folks, we are not selling alcohol, tobacco, or firearms. There’s no
proof, factual or alleged, that music provides any negative
tendencies for end users. In fact, it’s the contrary. Why go after
this small industry and try to destroy it?
This lawsuit could clearly be “ambulance chasing.” Is the ultimate
goal really to punish the music products industry?
I doubt it. It’s sickening to see people or organizations try to tear
apart our industry.
-Brian Berk
• MIAC Making Changes
By Kristian Partington
When 2,600 people converged on Toronto’s International Centre for
the 2009 Music Industries Association of Canada and Pro Audio
Lighting Trade Show in August, the dominant topic of conversation
wasn’t necessarily the latest developments in electric guitar
hot-rodding or cutting-edge recording technologies. The impact of
the global economic collapse on the music industry carried most of
the weight.