JULY 5 | FIRST ACT | LEGAL
First Act continues to be first in court.
The Massachusetts-based manufacturer was paid $16.7 million by the insurers for Brook Mays Music in early July to settle a civil lawsuit filed in 2003. The suit, decided unanimously in 2005, alleged that the the Dallas-based musical instrument retailer and rental company made false advertising statements about First Act that interfered with First Act's contracts and business relationships.
The original jury award was for $20.7 million in damages. Bernard Chiu, First Act's chairman of the board, approved the settlement.
In June, the U.S. District Court for Massachusetts granted First Act a preliminary injunction against Kansas International. The order directed Kansas International to cease selling and distributing its Burswood guitar case, noting "striking visual similarities" to a First Act product. The court also stopped Kansas International from promoting or visually depicting the Burswood case and ordered the company to recall all such guitar cases sold or consigned to U.S. retailers.