Posts Tagged ‘lawsuit’

Big Record Labels Ready to Rain on Amazon’s Cloud

March 30th, 2011

Once again, technology has improved consumer options for music listening.  And, once again, sadly, the music industry is predictably blowing the dust off its “Obtuse PR Tactics” textbook.

Litigation PR plays a big role in the school of obtuse PR, and offers perspective in understanding what’s about to unfold.  When major corporate entities file lawsuits, smart public statements help advance the case in the court of public opinion.  Not-so-smart public statements, conversely, can hamper public attitudes.

We’ve written before about how record labels are, ahem, tone deaf to consumer sentiment and public perception of mindless business practices.  And they’re about to step in it all over again.

Background: Amazon has stolen the fickle tech spotlight by announcing its new cloud drive music service.  Basically, people can now store digital music on an Amazon.com account and stream songs to integrated devices.  This allows potentially limitless music storage, compared to the hard drive confines of a computer or portable music player.

In truth, Amazon’s move isn’t revolutionary technology; rather, it’s a smart assessment of consumer preferences and leverage of wireless bandwidth.  We’d argue that the shift from cassettes to CDs was way more important, as that transition represented a dramatic boost in enjoying audio quality.

Regardless, the music industry seems ready to fight tooth and nail against advancements and technological trends.  Here are choice music executive quotes on Amazon’s cloud:

“Keeping legal options open.”

“The locker service that Amazon is proposing is unlicensed by Sony Music.”

“It sounds like legalized murder to me.” (Seriously?!?)

In other words, the record labels seem ready to bellow: “We will sue Amazon, as scorched-earth litigation PR is in our collective genome.”  Instead of such statements, what if the RIAA, on behalf of the record labels, simply said:

“Cloud music is an interesting technology development.  We’ll keep our eye on it.”

See that?  Framing the industry’s official position as passively interested in no way compromises litigation potential.  Such a statement certainly helps avoid negative headlines and mistaken context as the cloud music media narrative gains momentum.  Better to be a bit mysterious and noncommittal in this case, as opposed to playing the oppressive tactic of “let’s sue ‘em into oblivion.”

How Litigation Actually Helps Your Company Improve Its PR Capabilities

June 16th, 2010

Surprise – your widget-making mom-and-pop/mid-sized business/global corporate behemoth has been sued!  Apparently Timmy Goodkid Thompson tried to eat a decidedly non-edible product your business sells, and hurt himself quite amazingly in that effort.  Did we mention it’s your flagship widget, the one that drives 99% of your revenue?

The Thompson family – farmer father, teacher mother, rambunctious and adorable Timmy – have hired a media-friendly law firm, one that has perfected the art of PR stagecraft.  The firm has called a press conference to publicize the lawsuit.  All the 24/7 networks will be there, not to mention local reporters your neighbors know and trust.  Since the scrum will be streamed live, product safety bloggers are all over this one, riding a high-wave of backlash against corporate malfeasance.  Someone (the law firm?) has launched a fake Twitter account in your company’s name, a parody that sarcastically communicates abject, tone-deaf insensitivity with tweets like “next time blend the widget, it’ll digest more easily.”

Your company isn’t sweating, though, because you’re confident your product was not the cause of injury, and that your customers likely will understand this.  More importantly, long ago you hired a smart crisis management PR firm to draw up a crisis response playbook… right?  You did an inventory of interested media, have a holding statement in place, along with a grid that anticipates an escalating public relations meltdown… right?

Ok, enough about the PR nightmare, let’s shift to reality.  Litigation PR makes any company nervous.  No matter how small a lawsuit, the potential for media attention is limitless.  Yet in a way, that’s the beauty of litigation PR – in anticipating lawsuit scenarios, business leaders must identify every stakeholder, and that includes everyone in your company hierarchy.  Imagine the human resources involved in the widget lawsuit:

• Are the front office staff prepared to answer initial phone inquiries, do they have talking points?

• Have the interns been told to stay quiet and report inquiries to supervisors?

• Has the communications office reviewed and updated crisis PR procedures to ensure relevancy? (Note: Big Oil – walruses in the Gulf of Mexicoseriously?)

• Has building security been consulted regarding protestors who may show up at the front door?

• Has a point-of-contact been designated to oversee the entire crisis PR response?

• Has legal counsel examined your supply chain to identify each choke point of liability, and in turn relayed that information to your communications staff so they have statements and talking points ready to address each vulnerability?

• Are the IT staff ready to update the company website immediately with relevant messaging?  Do you have a dark site in waiting for this special occasion?

• Has everyone signed a NDA regarding trade secrets and the relevant aspects of litigation?

Such thorough preparation is essential in litigation PR.  As the company head, you can only achieve this level of care by engaging every tier of staff within your business operations.  That’s why an effective crisis playbook fundamentally requires looking inward, and in doing so your company encourages discipline amongst the ranks and knowledge of the situation.

Nothing looks worse than an erratic or empty media response to a lawsuit, so embrace the possibility of litigation and run the traps to get all employees on the same page.

The Tale of the Notorious J-O-B and iPhonegate

April 21st, 2010

The story surrounding the leak of what may possibly be the next iPhone has all the elements of new media intrigue – a company notorious about keeping secrets; sexy, cutting-edge gadgets; payments for story contributions; rumors of conspiracy; possible crippling lawsuits – and that’s just what we know now.

Overall, the question that anchors the debate is whether this is good or bad public relations for Apple.  Some say that “iPhonegate” dials up loads of free positive publicity for the company, while others argue that the leaked 4G phone makes Apple look sloppy on product control.  (While there is speculation about Apple purposely “planting” the phone to be lost and found, that doesn’t seem plausible – this is a company that doesn’t participate in amateur hour PR, and this situation seems no exception.  Besides, the company will never admit that they lost a prototype anyway.)

Here’s a better way to look at the ordeal – maybe Apple is pissed that they lost total control of the public relations narrative.  Gawker effectively unraveled and undermined Apple’s tight grip on the PR pipeline by releasing the prototype photos.  And, as we know about the control-prone company, nothing could possibly irritate Apple more than not scripting the media storyline on their own terms.  We can argue about the ethics of Gawker’s actions all day, but what can’t be denied is that Apple has no effective way to lead the story anymore.

So about that lawsuit… how about the odds on Apple pulling the trigger?  They’re probably pretty good.  Remember that Apple sued thinksecret.com into nonexistence after that site published leaked Apple trade secrets.  Add to that the fact that the Gawker platform has been a relentless critic of Steve Jobs for quite some time.  Add again to that the incredibly disrespectful manner in which Gizmodo responded to Apple’s request for the leaked phone to be returned, taunting the company that its gadget “was burning a hole in our pockets.”  Add again to that the potential lost value to Apple, at least via legal calculations, can be made out to billions (as in B).  It’s safe to say that Gawker can’t cover that bet.