Peavey v Behringer/The Music Group Legal Maneuverings Continue

Last week we brought you news of the lawsuit The Music Group filed against Peavey – now Peavey has hit back and The Music Group are claiming a win.

As I said last week, I won’t provide editorial comment on these actions, but GuitarSite.com will bring you the news as it unfolds.

Firstly, here is a new press release from Peavey:

May 2, 2011 – Peavey Electronics Corporation, one of the world’s largest manufacturers of musical instruments and professional sound equipment, has initiated multiple actions against Behringer for various intellectual property issues, including patent infringement, false marking, trademark infringement and unfair competition.

The Behringer-related entities currently involved in these suits include: Music Group Services LU SARL, a corporation currently located on Mauritius (an island off the coast of Madagascar); Music Group Services US, Inc., a Washington state corporation; Behringer International GmbH, a German corporation; Behringer Holdings (PTE) Ltd., a Singapore company; Red Chip Company Ltd., a British Virgin Islands corporation; Behringer USA Inc., a Washington state corporation; and Behringer Spezielle Studiotechnik GmbH, a German corporation.

Peavey filed a lawsuit in 2009 against Behringer in U.S. District Court in New Jersey for patent infringement, federal and common law trademark infringement, false designation of origin, trademark dilution and unfair competition relating to, among other things, Peavey’s patented Feedback Locating System. More recently, Peavey filed an action against Behringer in the Southern District of Mississippi, accusing Behringer of infringing a patent relating to the Peavey Messenger® portable sound system.

Behringer filed a lawsuit against Peavey in the U.S. District Court in Seattle, Washington. Peavey has vehemently denied any wrong doing and is vigorously defending that baseless, retaliatory lawsuit.

“Behringer, MUSIC Group, and its numerous corporate identities in various locations, are no stranger to litigation against them for patent and trademark infringement,” stated Ronald Bienstock, attorney for Peavey. “Behringer has been a party to multiple intellectual property related lawsuits with other companies in the music instrument and pro audio industry.

“During its entire 46-year history, Peavey has always taken its responsibility to comply with governmental requirements seriously. Peavey engages in rigorous testing to ensure its products meet or exceed regulatory requirements.”

Bienstock also noted, “In light of the allegations raised by Behringer, I should emphasize that these groundless accusations are being posed by a competitor against whom Peavey has multiple legal actions pending in multiple U.S. District Courts, and in no way originate from any governmental agency.

“Peavey has a long history of innovation that the company has protected through patents, trademarks and other means. Over 46 years of operating, Peavey has earned over 200 patents in the United States and internationally. Peavey has also held about 700 trademarks here and abroad. Peavey strongly believes in intellectual property rights and will not be dissuaded by Behringer or anyone else from enforcing those rights.”

This is the latest press release from The Music Group:

May 3, 2011 – Peavey Electronics Corporation has defended the failure of several of their products to meet Federal Safety and Emissions Standards (FCC) by deflecting the allegations made in US District Court by MUSIC Group. In a statement circulated yesterday, Peavey has repeatedly claimed that they are engaged in “multiple legal actions” against MUSIC Group’s brand Behringer, without disclosing either the nature or status of such actions.

In the release, Peavey cited a lawsuit filed against Behringer in 2009 for alleged patent infringement related to Feedback Location circuitry without disclosing that the presiding Judge already issued an opinion which rendered the claim as baseless. As a consequence, Peavey withdrew the claim recently but suppressed the judge’s finding and the fact that Behringer had in fact patented their own FBQ Feedback Identification system in multiple countries to defend its own intellectual property.

Another nonsensical lawsuit filed by Peavey centered on a labeling issue whereby the phrase “Patent Pending” was not replaced by “Patented” on products after the patents had been granted to Behringer in several countries. In their statement, Peavey also concealed the fact that they are the subject of a countersuit brought by MUSIC Group alleging exactly the same mislabeling issue. That case is ongoing.

“It is unfortunate that Peavey would address their declining fortunes in today’s marketplace by resorting to lawsuits against competitors and more important by cutting corners on testing and compliance. Their energies would be far better spent ensuring their products are safe for consumers and that they meet the requirements of the law rather than engaging in a confused and nonsensical attack on a successful company”, commented SVP Marketing, Costa Lakoumentas in response.

MUSIC Group has presented independent evidence in the form of test results from accredited third parties to substantiate the claims that 7 out of 10 Peavey products tested failed government safety and emissions standards (FCC). The case will be heard in the District Court of Seattle and the results will be made public as the case unfolds.

The MUSIC Group holds a substantial amount of intellectual property such as patents and trademarks. The Company will vigorously defend its rights against Peavey or anyone else.

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