The Transcendent Music Movement Presents: Legal Liabilities that will Effect Transcendent Music’s New Product Line

The Transcendent Music Movement Presents: Legal Liabilities that will Effect Transcendent Music’s New Product Line

This year, Transcendent Music has begun work on its first product line.  Launching this product is going to be a huge step for the startup.  The business plan surrounding the product has elements of several industries.  The two primary industries are entertainment and manufacturing.  The business plan is to develop both a line of percussion instruments and smart technology that enhances previously existing percussion instruments.  Three legal liabilities that will impact the business plan are compliance with manufacturing and trade regulations, the products trademark, and its patented technology.  The guitar manufacturer Gibson, the band the Velvet Underground and technology company Apple, all recently dealt with those liabilities respectively, in one way or another.

http://www.libertarianrepublican.net/2011/08/feds-raid-non-union-gibson-guitar-again.html

Gibson Guitar Corporation has been a prominent name in guitar manufacturing for years.  Countless well-known guitar players have played their guitars as well.  Much of what makes Gibson guitars so popular is derived from the high quality components used in manufacturing their guitars.  However, The Wall Street Journal reports that the U.S. Justice Department has authorized several raids of the Gibson factories, “seizing guitars, wood and electronic records.”  The Justice Department is citing The Lacey Act of 1900 to justify their raids and their investigation of criminal activity.  The Lacey Act, as amended in 2008, was enacted to regulate the trade of wildlife, fish, wood and other plant products.  Gibson allegedly imports wood that violates the export laws of the countries from which their fine woods are supplied.  The Lacey Act also covers the violation of any laws in another country with regard to wood or other plants.  I do not have a strong opinion on the matter considering I do not have all of the facts.  I believe however that it is extremely important to be well informed on the laws that govern other countries that you do business with.  In particular, it is important to know those that deal with the product or service you are dealing with.  Leonard Krause a consultant is reference in the article suggesting that businesses hire legal professionals in the countries they do business.  He goes on to explain that there are not many U.S. attorneys who know the laws in other countries, to further his point.

http://www.collegedj.net/2012/01/11/music/velvet-underground-files-suit-over-rights-to-iconic-banana-image/

The Velvet Underground filed suit against The Andy Warhol Foundation.  In the 60s Andy Warhol designed an album cover for the band the Velvet Underground.  The band claims that the album cover design became synonymous to the band.  Andy Warhol has since sought to license the design.  Eriq Gardner reported in his Billboard article  “After reading reports that the Warhol Foundation planned to license the design for ancillary products associated with Apple's iPod and iPad, the band made moves to put a stop to such activity.”  Apparently neither party registered the design.  The Velvet underground is arguing that many consumers will associate the album design with the band and the band does not want to be associated with such products.  This is very much so understandable and it shows the importance of registering trademarks.  Once the product line’s logo is designed we will seek to register it.  We will do this prior to it becoming representative of the product.  This way the logo will be privy to the protection of the law.  It will have legal standing to discourage issues like the ones between the Velvet Underground and Andy Warhol.

http://www.maclife.com/article/columns/law_apple_secret_deals_dismissed_patents_and_appeals_denied        

          Apple for sometime now has found itself in a battle over patented technology.  Apple has accused other companies of infringing on their patents and vice versa.  Motorola Mobility Holdings Inc. filed suit recently resulting in an injunction on Apple.  Reuters reported Motorola as saying that they were, “suing Apple for infringing six of its patents involving technologies related to wireless antennae, software, data filtering and messaging.”  Though the injunction has since been lifted, infringements of this sort can lead to legal ramifications that can destroy the accused company.  The lesson learned is to avoid violating the registered patents of other companies.  Secondly, it is important to properly register any patent worthy technology or device invited as a part of or therefore an invented product. 

          TRANSCENDENT MUSIC is extremely excited about developing its new product line.  The lessons learned from the above companies as cited in these articles are sobering though.  There are a lot of details involved in any business adventure.  You have to be conscious of the laws and regulations that govern every aspect of your business.  It is more important that you adhere to them though.