RED STAR RECORDS VS. HEINEKEN MUSIC INITIATIVE

PART 2; MORE CALLOUS DISREGARD

Do you remember last year's dispute between punk producer Marty Thau and Heineken Beer? Thau claimed Heineken's usage of the Red Star Records name was a violation of his rights. Heineken claimed they didn't intentionally or maliciously violate anyone's rights but since Thau hadn't trademarked the Red Star Records name back in 1977 they assumed it was free and clear and usable.

Well, it seems Heineken didn't do their homework because, even without a trademark registration, Thau is legally protected under what is known as Common Law Rights, having operated as Red Star Records for 26 years and releasing records by seminal punk artists like the Ramones, Blondie, New York Dolls, Suicide and Richard Hell.

Thau agreed to settle the dispute amicably, and proposed Heineken use the name Red Star Sounds instead of Red Star Records and only release a limited number of urban music CDs per year with the proper acknowledgement that their Red Star entity was a non – profit corporation designed to benefit urban musicians and was not to be confused with Thau's Red Star Records, a rock 'n roll label. Heineken agreed with Thau's proposal but are not sticking to their urban music only pledge. Thau contends Heineken are violating the agreement by sponsoring and promoting rock videos on Canada's Much Music TV network under the Red Star Sounds banner.

It seems that brand marketers, especially beverage companies, are hoping to establish broad connections between music and their products and marketers are looking at all sorts of models for hitching their wagons to digital music.

The big trend on Mad Avenue is for beverage companies to jump on the downloading bandwagon and offer free music on bottle caps and labels. Apple Computer has inked a deal with Pepsi to give away 100 million downloads in a promotion that kicked off with a Super Bowl ad. Miller Brewing will give away Napster branded digital music players next summer and other beverage suppliers, MP3 player manufacturers, airlines and credit card companies are also getting in on the act. Pepsi works closely with Sony Music and Coca-Cola has a similar relationship with the Universal Music Group.

Some, like Heineken, are sponsoring rock music programming. Where all this goes remains to be seen.

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