Nov 15, 2009
VOLUME 26 NO.11

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 
 

   
 

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-Table of Contents
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FEATURES
-Pay It Forward! You’ve heard enough bad news. We take a look at the fantastic things happening in MI today.
-‘MIM is the Word The Musical Instrument Museum opened in Phoenix to a lot of fanfare. Rebecca Apodaca, an expert on antique instruments, gives you a rundown of the latest thing to hit MI.
-‘Loud and Clear Pro audio products continue to sell. We get the scoop from four top manufacturers.
-‘Open Door’ Policy NAMM makes a big change by allowing member-invited guests on the last day of Summer NAMM.
-Musikmesse A-107K! Attendance at Musikmesse and Pro Light + Sound dipped slightly, but optimism was up.
-It’s in the Cards ! You need to have PCI DSS-compliant terminals to handle credit card transactions by July 1. What are we talking about? Don’t worry, we’ll explain.
-Unplugged Acoustic guitar sales grew dramatically in 2009 and the beginning of 2010. Is this the beginning of a new trend?
-Head of the Class! We shine the spotlight on many of the new companies that launched at NAMM.
-Musicorp Mourns Mike Murphy We honor the sale rep’s life that ended way too soon.
-Is a New Healthcare Plan Just Snake Oil? We take a thorough look at how a new public healthcare plan can affect you and your employees. ?
-Bonanza! Behringer Buys Bosch Brands Behringer’s parent company added the Midas and Klark Teknik brands to its stable.
-The Stars Will Come Out…This Weekend We highlight a few of the celebrity appearances at NAMM.
-What A Long Strange Trip It’s Been!!! We reminisce as we close out the first decade of the new millennium. It was a tough 10 years for many. How about for the music industry though? What’s ahead?
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It’s Voting Time! Here are your nominees for the 24th annual Music & Sound Awards.
-Here We Come to Save the Day!!We provide a plethora of accessories that manufacturers assure you will provide excellent margins.
-For Those Who Make Lesser Publicized Instruments, We Salute You!!For the first time, we pay tribute to instruments and products that get little press coverage. We provide a well-deserved spotlight for these products!

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

COLUMNS
-The Music & Sound Independent Retailer Chris Lovell tells you how history can predict the future and gives a big shout out to trade magazines. Plus, a retailer affected by the Nashville-area
floods, a new dealer, iMSO’s Summer NAMM meeting and more.
-Five Minutes With: Sure, the Kentucky Derby was last month. But that doesn’t mean Spy can’t see which store will cross the
finish line first in Louisville.
-MI Spy: MI Spy is off to Sin City. Oh boy, a Spy in Las Vegas can’t be good. Amazingly, Spy did get some work done.
-Dan the Man: Music & Sound Retailer Assistant Editor Dan Ferrisi remains on the music-playing sidelines.
-Birth of a Product Two former PRS veterans combined forces to found Knaggs Guitars. The story behind the Maryland- based company, which debuted a line of products at Musikmesse.
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Sales Guru: Gene Fresco knows what “Pre-approach” is. He
imparts all of his knowledge to you.
-Veddatorial: Dan Vedda provides tons of Summer NAMM thoughts and some general summer thoughts, as well.


FORMIDABLE FEMALES

-Sue Avant is a trailblazer. She’s also someone who
has varied interests. And she is, indeed, formidable.

-Mary Ann Giorgio It sure sounds like a great job to cover soap operas like Days of our Lives and speak to celebrities on a daily basis. But MXL’s Mary Ann Giorgio was never comfortable in that industry. She sure is comfortable at MXL Microphones though.
-Fusion Bags For the first time, we feature multiple people in this column. We look at the genesis and growth of the all-women founded business, Fusion Bags.
-Linda Arink is one of the very few female executives at a DJ company. Learn how she became involved and why she hopes we won’t even need to have a column about top industry females in the future.
-Debbe Stephenson stumbled upon MI shortly after college, but is sure glad she did. She’s now president and COO of Pro Co Sound.
-• Mary Peavey
-• Jennifer Tabor
-• Tarina Dunwoodie
-• Stacey Montgomery-Clark.
-• Cathy Duncan
-• Bee Bantug
-• Dale Krevens
-• Melanie Ripley
-• Susan Grund
-• Toby Nady
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp



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And the Bombs Keep Coming
[November 2009 - Page 1]

Guitar Center, Fender, NAMM Sued Again

Another class-action lawsuit, this one filed by lead plaintiff Walter Witherspoon, d.b.a. Racy Brothers Enterprizes and Lil Walt Production, accuses Guitar Center, Fender, and NAMM of engaging in a “conspiracy to inflate and fix the prices of musical products.”

As with the class-action lawsuit filed on Sept. 11, this lawsuit, filed Oct. 2, refers to the Federal Trade Commission (FTC) allegations put forth against the music instruments industry. NAMM settled with the FTC earlier this year. The FTC settlement does not admit any NAMM wrongdoing.

This lawsuit is different in that it accuses more defendants than the three we previously mentioned. Also accused of wrongdoing and named as defendants were Peavey, Roland, Gibson, Bain Capital, C.F. Martin, Korg, Yamaha, TASCAM, and TEAC. According to the suit, the defendants “exchanged sensitive price information for musical products and agreed to adhere to minimum advertised pricing or minimum resale price maintenance agreements, which led to increased prices for consumers across the country.”

This lawsuit is also different because it claims Guitar Center was involved in a “coordinated and collusive effort with manufacturers beginning in approximately 2001.” In addition, this lawsuit does not claim NAMM directly participated in any collusive efforts. However, the wrongdoings might have been discussed at NAMM shows. According to the lawsuit, “NAMM became the perfect conduit in which MAP pricing could be discussed…Defendants engaged in illegal behavior at NAMM and outside of the trade show.”

As for allegations against Guitar Center, the lawsuit states: “Guitar Center frequently demanded and received preferential and discriminatory benefits, promotional allowances, financial incentives, discounts, pricing, and other favorable terms from the defendant manufacturers with respect to musical instruments and equipment sold at its retail stores or through its online companies and its catalogues….Guitar Center threatened retaliation if defendant manufacturers did not cooperate with Guitar Center.”

The lawsuit defines the suing class as million of people. The suit seeks compensatory, actual, treble, and punitive damages, as well as an injunction preventing any future alleged “intentional and malicious conduct.”

The plaintiffs are represented by Barnow and Associates, P.C., Roberts Law Firm, and Harke & Clasby LLP.

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