Monster Cable Threatens The Wrong Small Cable Manufacturer
Not long ago Monster Cable sent a cease and desist letter to Blue Jeans Cable alleging that the small cable manufacturer was infringing on several of their patents. What they probably didn't expect was that Kurt Denke, the president of Blue Jeans, "spent nineteen years in litigation practice, with a focus upon federal litigation involving large damages and complex issues," after graduating from the University of Pennsylvania Law School in 1985.
Kurt allowed Audioholics.com to reprint his entire response to Monster Cable. Here's our favorite part:
I have seen Monster Cable take untenable IP positions in various different scenarios in the past, and am generally familiar with what seems to be Monster Cable's modus operandi in these matters. I therefore think that it is important that, before closing, I make you aware of a few points.After graduating from the University of Pennsylvania Law School in 1985, I spent nineteen years in litigation practice, with a focus upon federal litigation involving large damages and complex issues. My first seven years were spent primarily on the defense side, where I developed an intense frustration with insurance carriers who would settle meritless claims for nuisance value when the better long-term view would have been to fight against vexatious litigation as a matter of principle. In plaintiffs' practice, likewise, I was always a strong advocate of standing upon principle and taking cases all the way to judgment, even when substantial offers of settlement were on the table. I am "uncompromising" in the most literal sense of the word. If Monster Cable proceeds with litigation against me I will pursue the same merits-driven approach; I do not compromise with bullies and I would rather spend fifty thousand dollars on defense than give you a dollar of unmerited settlement funds. As for signing a licensing agreement for intellectual property which I have not infringed: that will not happen, under any circumstances, whether it makes economic sense or not.
I say this because my observation has been that Monster Cable typically operates in a hit-and-run fashion. Your client threatens litigation, expecting the victim to panic and plead for mercy; and what follows is a quickie negotiation session that ends with payment and a licensing agreement. Your client then uses this collection of licensing agreements to convince others under similar threat to accede to its demands. Let me be clear about this: there are only two ways for you to get anything out of me. You will either need to (1) convince me that I have infringed, or (2) obtain a final judgment to that effect from a court of competent jurisdiction. It may be that my inability to see the pragmatic value of settling frivolous claims is a deep character flaw, and I am sure a few of the insurance carriers for whom I have done work have seen it that way; but it is how I have done business for the last quarter-century and you are not going to change my mind. If you sue me, the case will go to judgment, and I will hold the court's attention upon the merits of your claims--or, to speak more precisely, the absence of merit from your claims--from start to finish. Not only am I unintimidated by litigation; I sometimes rather miss it.
I will also point out to you that if you do choose to undertake litigation, your "upside" is tremendously limited. If you somehow managed, despite the formidable obstacles in your way, to obtain a finding of infringement, and if you were successful at recovering a large licensing fee--say, ten cents per connector--as the measure of damages, your recovery to date would not reach four figures. On the downside, I will advance defenses which, if successful, will substantially undermine your future efforts to use these patents and marks to threaten others with these types of actions; as you are of course aware, it is easier today for your competitors to use collateral estoppel offensively than it ever has been before. Also, there is little doubt that making baseless claims of trade dress infringement and design patent infringement is an improper business tactic, which can give rise to unfair competition claims, and for a company of Monster's size, potential antitrust violations with treble damages and attorneys' fees.
I look forward to receiving the information requested and will review it promptly as soon as it is received.
Sincerely,
Kurt Denke
Blue Jeans Cable Strikes Back - Response to Monster Cable [Audioholics] (Thanks to everyone who sent this in !)
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Comments:
@TheBigLewinski: Or hate to hate. They keep shifting funds to offshore accounts using shady deals, but not illegal in the eyes of the Fed. This is the kind of operation that I really want to see die a Enron death, taking almost all of the execs down with the ship, save for a couple, one committed suicide, the other acquitted for turning states' evidence.
@Steve Trachsel, Ace: You need to read the whole thing. He goes in length on exactly how he is not infringing.
@Steve Trachsel, Ace: Where? He makes it clear that he is NOT infringing their patents and dares them to prove otherwise.
@Steve Trachsel, Ace: Not even close. He actually says that if they can show he infringed, no legal action is necessary.
I need to go out and buy more electronics so I can order cables from him.
@Steve Trachsel, Ace: I'm not getting the same impression, as he says that he didn't infringe. Also, he's threatening to taking it all the way through court to make them prove he's infringing on their patents.
@Steve Trachsel, Ace: So..i'm guessing you just didn't bother to read the whole response or any of it for that matter. He never once admits to infringing on any of their patents, but calmly explains to them that the burden of truth is on the accuser, not the accused and that Monster basically just told him "YOU DID IT!" with no real solid proof to back up their claims.
The part where he goes into his law history is to emphasize that Monster's (and many other large companies..cough..RIAA..cough)tactics of attempting scare people with little or no knowledge of the law and much lighter wallets with the threat of litigation doesn't always work the way they want it.
They tried to bully the wrong man and now they're going to pay for it. RTFA.
Monster blows anyways.
@comedian: Website is down - obviously other people are interested in Blue Jeans Cable.
At the very least, if he doesn't win, he sure got a lot of great press out of it.l
Im going to buy cables from this guy...cables that I currently do not need just in hopes that my money fills his legal coffers in a fight against Monster Cables.
That company is so full of shit, they rip people off left and right and laugh all the way to the bank. Remember the coat hanger study? So do I.
Monster should try going after these guys, instead, for violating their patents:
@Steve Trachsel, Ace: What are YOU reading? RTFA. NOWHERE does he admit to any infringement as they provide woefully inadequate information about the infringement claim.
They're basically trying to pull an RIAA style bully session.
@eightfifteen:
Agreed. Best. Line. Ever. "Not only am I unintimidated by litigation; I sometimes rather miss it."






















ahahaha I love it. uber pwnage.