Gibson Guitar Corporation Lawsuit
In June 2005, Gibson Guitar Corporation filed a cease and desist order and an accompanying lawsuit against Elderly Instruments. The complaint alleged that Elderly was selling a banjo on its web site marketed as a "Gibson copy" and that the phrase constituted a trademark infringement. Despite Elderly's claim of having addressed the issue by changing the phrase first to "Famous Maker Copy" and then to "Classic Bluegrass Banjo Copy," Gibson persisted with the complaint and asked for unspecified damages. Gibson later issued a press release stating that the lawsuit had been settled.
In the same year, Gibson severed its contract with Elderly as a retailer of Gibson products, citing a contract stipulation that retailers should not carry any competing brands of banjos and mandolins. Elderly had been one of nine retailers selling the specialized Gibson Bluegrass line of banjos and mandolins, although it also carried other brands. Werbin attempted to rectify the situation by offering a dedicated area of the store for Gibson products, but Gibson proceeded with the action. As a result, Elderly does not offer new Gibson products for sale. The incident was well-publicized in the media and discussed at length in consumer forums.
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