Monster Cable: Not With a Bang but a Whimper

K

KurtBJC

Audioholic
People have been writing to me to ask whether anything further has happened on the Monster Cable litigation-threat front. As many of you already know, Blue Jeans Cable was threatened with patent and trademark litigation by letter which arrived (appropriately enough, given the seriousness with which Monster's claims deserved to be taken) on April Fools Day. I wrote back on April 14 with a letter which seemed to me to be a fairly ordinary piece of legal correspondence but which, to my personal astonishment, seems to have become an instant Internet classic. These documents are all available at: Monster Cable's April Fools Manifesto and Our Response

Some people have said, "there's no way they'll sue you now." Others have said, "you know, that was stupid to send that letter--now Monster HAS to sue you." As always, the spectrum of points of view is interesting. I have been heartened by the fact that the more people know of Monster, of litigation, and of intellectual property law, the more likely they seem to be to be of the former view, rather than the latter.

Anyhow, the update: Well, all we are hearing is the sound of crickets. Monster crickets, very loud, but crickets nonetheless. Twenty-five days after the response, there has not been a peep from Monster. One can never know, of course, whether something is still coming, but we suspect that Monster Cable has done the smart thing and walked away from what would have been a litigation fiasco.

Thanks again to everyone for your e-mails of support. Should this story take any further turns, we will of course let you know, but we suspect it will end right here.

Kurt
Blue Jeans Cable
 
supervij

supervij

Audioholic General
It's great to hear, Kurt! Maybe this'll make them think twice before they try this on someone else!

Out of curiousity: does the Monster have to inform you that they're "walking away" in some kind of official correspondance, or can they just say nothing forever?

cheers,
supervij
 
K

KurtBJC

Audioholic
No, they don't need to send me anything to withdraw from it--there's no legal proceeding pending, so there's nothing to dismiss. The smart thing, as I've said, in my opinion is for them to do and say absolutely nothing, but I have not been expecting them to do that--it's too hard for a lawyer not to want to have the last word. Given, though, that it's been a few weeks, I'm guessing we really have heard the last of this.

Kurt
 
C

cfrizz

Senior Audioholic
Congratulations Kurt!

This too will end up all over the web & hopefully give other small business owners the courage to stand up to Monsters blackmail attempts!
 
MinusTheBear

MinusTheBear

Audioholic Ninja
This too will end up all over the web & hopefully give other small business owners the courage to stand up to Monsters blackmail attempts!
This story has spread like the Bubonic Plague and has only brought negative attention towards them but to a much broader demographic. Ironically these attempts by them has only made BJC stronger and actually I would think this fiasco has been good for their business. The transparency Mr. Denke has brought forth during this process shows the integrity he has for his products and his company. I wonder how much sales have jumped for BJC since April 1, 2008:)?
 
tn001d

tn001d

Senior Audioholic
I love BJC!! Hey when are u guys going to start making power cables...?
 
Jack Hammer

Jack Hammer

Audioholic Field Marshall
Kurt,
I'm truly glad to hear that you've heard nothing. I had feared the worst with no updates on the subject. Is there a time limit that Monster has to contact you, either a legal time frame or an accepted industry standard? It would be nice to know at some point you've officially heard the last from them.

Have you considered making your letter available, basically as some type of form letter, for other family owned small business owners to use freely (or for a modest fee) if Monster tries to pull similar BS with them? Snow Monsters comes to mind.

Jack
 
Snow Monsters (and all the other "Monster" companies) was a separate issue, unfortunately, that had to do with the name rather than a design patent claim.
 
jinjuku

jinjuku

Moderator
No, they don't need to send me anything to withdraw from it--there's no legal proceeding pending, so there's nothing to dismiss. The smart thing, as I've said, in my opinion is for them to do and say absolutely nothing, but I have not been expecting them to do that--it's too hard for a lawyer not to want to have the last word. Given, though, that it's been a few weeks, I'm guessing we really have heard the last of this.

Kurt
Monsters opening letter was essentially "putting you on notice" of "possible infringement". How long can they let this legally string on and not take it to the courts for them to lose the ability to claim at a later date? Is this dependent on the Circuit?

What I am asking is; with Monster putting you on notice 4/1/2008, when does laches become a true affirmative defense for you? I know almost all law suit defendants will list laches as an affirmative defense, and it's just as likely not to hold up.

I agree, with 25 days now past since your reply, with no peep out of them, they are tossing this small but very dangerous fish back in the waters in search of an easier catch to litigate against. They sure ain't stupid at Monster HQ, gotta give them that.

You want to put a booth next to them at the next major trade show? I would happily volunteer my time to help you put a thumb in their eye. You could expressly promote your Tartan line of economical RCA cables. We could show a blow apart of Monster (w/ price) vs. Tartan cables and then allow for blind A/B listening to see if anyone can tell the difference.
 
K

KurtBJC

Audioholic
Kurt,
I'm truly glad to hear that you've heard nothing. I had feared the worst with no updates on the subject. Is there a time limit that Monster has to contact you, either a legal time frame or an accepted industry standard? It would be nice to know at some point you've officially heard the last from them.
Well, first: if you hear nothing from us for a while, don't assume the worst. In fact, if they do sue us, the online community will know right away because we'll make sure the info gets right out.

And, no, there's really no time limit, by law or by convention. However, if they were going to pursue something, it's unlikely they'd sit around for a long time as it does open the door potentially to some equitable defenses (laches, waiver, and the like).

Have you considered making your letter available, basically as some type of form letter, for other family owned small business owners to use freely (or for a modest fee) if Monster tries to pull similar BS with them? Snow Monsters comes to mind.
Well, in effect, it's already available to anybody for free, so far as it is useful--theoretically, I suppose I have some copyright in it, but so long as people use whatever they find useful in it in actual fights with Monster or other IP bullies (as opposed to claiming it as their own work, for some other purpose) it would probably be "fair use" and therefore within their rights with or without my permission. The problem, of course, is that while one might use it as a sort of conceptual template, every case is different--you wouldn't want to send a boilerplate response to a cease-and-desist letter, because what kind of response you send depends on the facts and, to a great extent, on the merits of the particular case. If Monster's claims were not flat-out frivolous, the content of the letter would have been different. If Monster were asserting claims against a different connector, on the basis of different patents, the content would have been different, and so on...very hard to write a one-size-fits-all letter for this sort of thing.

Some elements of it, of course, are very particular to me. I knew that Monster almost certainly did not realize I had spent decades as a federal litigator, and I therefore had the opportunity not only to confront the claims and confront the inadequacy of the basis for those claims provided in the cease and desist letter, but also to make the point that I was not about to be a pushover. I certainly think that as a general rule, if you know you're not a "soft target," you may as well let your adversary know that up front--but of course, different people have different levels of aversion to litigation. As for me, having spent most of my adult life involved in litigation, I have an intense aversion to litigation where the merits are against me, and a kind of combative joy that attaches to litigation where the merits are in my favor. Skull-smashing is quite fun, if it's not your skull that's going to take the brunt.

I am considering putting together a sort of Internet clearinghouse for Monster litigation information, which might be of considerable value to people who get letters like this in the future. My thinking would be that simply getting all of the Monster litigation and intellectual property-related information together and downloadable in one place would be a helpful thing--it would save people in the future quite a bit of research. Most of that information is in the public record, though collecting it and assembling it into a readily accessible database might be quite a chore. In addition, some advice articles might be appropriate, though by the nature of the thing they'd have to be written rather broadly.

The main piece of advice I would have for anybody who has to deal with this sort of thing is: get a good intellectual property lawyer--and be sure that he knows his way around litigation, not just patent applications--and get him involved early. In my case, my roommate from second year at Penn is now an excellent IP litigator, so I didn't have to look far, and I have a bit of IP litigation experience myself so I'm not completely in the dark. Unfortunately, of course, it's hard for many people to know which of the lawyers they might call really know what they're doing and which don't. The legal profession is very easy to get into, so a law license is, unfortunately, far from a guarantee of minimally acceptable competence (hey, smart people: become lawyers! We need you!).

And when you get that lawyer: bear in mind that lawyers have a bias in favor of telling you at the outset that things are worse than they really are, because lawyers look good when the case improves and look foolish when it gets worse, so that they find themselves thinking it's better to "start low." But also bear in mind that if you're like most clients, you have a natural tendency to hear the parts of the advice that you want to hear and forget the other parts. You need a thoroughly candid consultation in which your lawyer is telling you what he REALLY thinks, and in which you are listening to ALL of that, even if parts of it are unsettling.

Also, it is important not to fear confrontation. I have seen some surprisingly timid responses to demand letters. What are people afraid of? Getting sued? The last time you want to be afraid of being sued is, believe it or not, when you're about to be sued. That is the time to take a very calm, candid look at your position and your opponent's position and fire off a response which is carefully modulated to match your evaluation of the case. If you're in trouble, you mildly deny liability but begin the process of inquiring about what it would take to make the claim go away. If you are not in trouble, by gum, you say so in the plainest and most direct language available to you. Why mince words when you are defending the lawfulness of your own conduct? Who will speak for you if you will not? And there are, of course, any number of possible spots in between "in trouble" and "not in trouble," which call for some blend of direct confrontation and indirect, rear-guard action deference.

Anyhow: I may very well assemble the great internet database/advice column for the beset-by-Monsters crowd. It'll take a while to get to, though, as the cable business does require plenty of tending...

Kurt
Blue Jeans Cable
 
F

fmw

Audioholic Ninja
Thanks for the update. I was quite certain that Monster isn't stupid enough to pursue that litigation. They didn't get to be #1 by being stupid. Nice work.
 
K

KurtBJC

Audioholic
Monsters opening letter was essentially "putting you on notice" of "possible infringement". How long can they let this legally string on and not take it to the courts for them to lose the ability to claim at a later date? Is this dependent on the Circuit?

What I am asking is; with Monster putting you on notice 4/1/2008, when does laches become a true affirmative defense for you? I know almost all law suit defendants will list laches as an affirmative defense, and it's just as likely not to hold up.
You know, I do not think I have ever seen anybody actually win a laches defense. There is no fixed time frame for it. It's not my style, frankly; I would rather charge into the fight with the chainsaw running and slice into the merits of the claim, not whine about how my adversary was too slow to sue me. The last thing I'd ever want to do would be to count my chickens based upon a squishy and indistinct defense like laches.

I should point out, too, that Monster has yet to actually put me on notice of any purported IP infringement. The letter they sent was much, much too vague and ill-supported to be deemed such a notice, and much of the point of my April 14 letter is to explain to them that they need to provide sufficient detail and explanation of the claim to place a reasonable person on notice, not just toss a pile of design patents on the table and say, "there's gotta be an infringement in here somewhere." If they want to put me on notice of a plausible, nonfrivolous claim of infringement, they've got some work to do.


You want to put a booth next to them at the next major trade show? I would happily volunteer my time to help you put a thumb in their eye. You could expressly promote your Tartan line of economical RCA cables. We could show a blow apart of Monster (w/ price) vs. Tartan cables and then allow for blind A/B listening to see if anyone can tell the difference.
You know, I see them at CES every year....it would be fun. I have a feeling the CEA would shut down my booth if I did that, though. We have been considering exhibiting at the major consumer electronics-oriented shows, but since we are direct-to-consumer it's been hard to figure out what niche we would actually market to there. We do sell a bit to custom installers, but not much. If I decide to put a booth together, I'll drop you a note....

tn001d said:
Hey when are u guys going to start making power cables...?
You know, this has been on the table here for a long time. Here is the problem, and if you have some thoughts on it I'd love to hear them.

Most of the power cable stuff we see on the market is all-voodoo. Lots of weird braided conductors with Teflon insulation, lots of hideously high prices with performance claims that range from the silly to -- well -- the really, really silly. If we did power cords, we would probably stick to a few basics. Adequate gage, UL rating, custom lengths and colors, and maybe fancy assembly in the sense of something like an ultrasonic weld rather than a screw-down or solder termination, for high mechanical durability.

What I am afraid of is that because 99% of the aftermarket cords are sold on the "lower the noise floor of your system using our Teflon-saturated FlummoxBraid construction" sort of marketing plan, the minute we introduced some nice, flexible, large-gage, custom-length power cords, the bad reputation of the aftermarket power cord business would spray all over us like skunk-smell. People would assume, before they even read what we had to say about power cords, that we were making performance claims, and would therefore file us away with the "voodoo" class of products.

What do you think? Is there a good way to avoid that? And in the absence of funky performance claims, is there a substantial market for a/v power cords? We see them in the professional market, where the only reason they exist is that people like to have short cords for tidy rack-mount installations, but I have my doubts as to whether there's much potential in the consumer market. If I had a notion of how to market them, we'd get right on it...

Kurt
Blue Jeans Cable
 
jliedeka

jliedeka

Audioholic General
Kurt,

If you don't want to do all the leg work yourself, send a feeler out to Groklaw. They've devoted the most energy to the SCO v Linux issue but they're all about IP abuses. I'm surprised this "case" didn't rate a headline level mention there.

Jim
 
Jack Hammer

Jack Hammer

Audioholic Field Marshall
I bought several heavy duty, 14/3 and 12/3 power cords last year after a amp I bought came with a high-end heavy gauge thick cord. Performance wise I couldn't tell any difference at all, but I really liked the way it looked. So I spent ~$50 on heavy duty shielded power cords for all my stuff. The funny part is I cant see them or hear any difference, but I like knowing that if I go behind my stuff it'll totally look cool.

Jack:D
 
tn001d

tn001d

Senior Audioholic
Kurt,

I dont look for the crazy esoteric power cords. The key is custom length. I really dont need a 6-8 ft power cord, and rather have minimal to no cord clutter. Thats the biggest reason why i ordered from you before. I was able to get cables down to the inch for my set-up.

I wouldnt spend over $50 for power cable.. but unfortunately had to pay $100 for a cardas Twin link power cable for my blu-ray player, when the PS Audio powerpunch cable was out of stuck from audio advisor. Normally i would of ordered from ramelectronic, but the blu ray player had the inferior C7 connection and not the normal IEC connection.

So i would recommend for BJC cable just to make some nice durable 12 guage or 14 guage cable at various lengths (or custom option) to make our installations a lot easier and neater :)
 
C

Chaon

Audiophyte
If Monster were asserting claims against a different connector, on the basis of <strike>different</strike> real patents, the content would have been different, and so on...
Fixed it.

I pulled a couple of suits filed this year by Monster Cable to see if they actually run around suing for infringement of their design patents. Sure enough, Monster Cable vs. Systemax, Inc. and Ultra Products, Inc. alleges infringement of D471,442 for HDMI cable packaging, along with trade dress infringement and... copyright infringement? Whatever.

But the funnier one is Monster Cable vs. Xtreme Accessories:
12. Defendants have used and may currently be using the slogan “HIGH QUALITY CABLES WITHOUT A MONSTER PRICE” in the promotion of products.
13. On information and belief, the “MONSTER” reference within Defendants slogan refers to Plaintiff, Monster Cable and its cable products.
Ha ha ha. Jerks. I have no idea who Xtreme Accessories is, but good luck to them.

BTW, there are about 70 civil suits total involving Monster Cable since 1980 (that I can find). It looks like the majority are this kind of nonsense.
 
K

KurtBJC

Audioholic
But the funnier one is Monster Cable vs. Xtreme Accessories
Wow. That one wins my 2008 BIA (Breathtaking Inanity Award).

It also makes my point, as I have said in a couple of places now, that there is no point in being afraid to be sued. One can get sued for the silliest of reasons--the thing to fear is not litigation, but meritorious litigation.

Cripes.

When I was in school (University of Washington Business School, class of '82) I had a professor who used to pose a question to challenge people's valuation of material things. He would ask, "how much money would it take for you to accept a job working for a very wealthy man, where that job consisted of accepting open public humiliation once a day?"

We could ask Monster's lawyers what they get paid, and Professor Hart would now have his answer.

Kurt
Blue Jeans Cable
 

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