In-House Counsel

Why Did the Marketer Cross the Bridge?

By Hanna

“Marketers can’t focus on those things” I was recently told at a conference when I raised a question about a potential legal pitfall in a marketing plan.  “If I did,” said another, “I’d never get anything done.”

There is was again.  The justification for why legal stuff was a business roadblock.  They preferred to be blinded by success instead of immobilized by fear.  I understand.  It’s less work and a whole lot more fun to bask in the glory.

These entrepreneurial marketers are not alone.

The Rhythm Watch Co. appears to have a similar philosophy.  Who’s Rhythm Watch?  They are the watch maker who took the cell phone ringtone idea and applied it to clocks.  Their “Grand Nostalgia Clock” chime rings includes songs by famous artists, including Paul Simon’s “Bridge Over Troubled Waters.”

The Grand Nostalgia Clock concept was good.  The execution was not so good.  Nostalgia Clock failed to license Paul Simon’s song and now he has sued them for copyright infringement. 

Some folks will tell you that it’s easier to beg for forgiveness than to ask for permission.  Lawsuit math doesn’t work that way.  According to the Complaint filed by Simon, a song as famous as “Bridge Over Troubled Water” could command a licensing fee of at least $1 million.  The suit seeks damages of $10 million and that doesn’t include the cost of the lawyers to defend the case and management’s time to help locate documents (i.e. evidence) and testify in court or at depositions.

Bigger companies have bigger financial shock absorbers than small businesses.  Those extra resources make it easier to handle litigation speed bumps.  For small businesses, however, a suit like Simon’s could be devastating. 

While marketers are always looking for innovative ways to reach their customers, it’s wise for you to look both ways before crossing the street.  That doesn’t mean you need to be lawyers or engage in minutia.  It only means you need to recognize potential problems before you get flattened by them.  Otherwise, the street you cross could become a “Bridge Over Troubled Water.” 

Full post as published by Legal Literacy on July 20, 2008 (boomark / email).