“Marketers can’t focus on those things” I was recently told at a conference when I raised a question about a potential legal pitfall in a marketing plan.  “If I did,” said another, “I’d never get anything done.”

There is was again.  The justification for why legal stuff was a business roadblock.  They preferred to be blinded by success instead of immobilized by fear.  I understand.  It’s less work and a whole lot more fun to bask in the glory.

These entrepreneurial marketers are not alone.

The Rhythm Watch Co. appears to have a similar philosophy.  Who’s Rhythm Watch?  They are the watch maker who took the cell phone ringtone idea and applied it to clocks.  Their “Grand Nostalgia Clock” chime rings includes songs by famous artists, including Paul Simon’s “Bridge Over Troubled Waters.”

The Grand Nostalgia Clock concept was good.  The execution was not so good.  Nostalgia Clock failed to license Paul Simon’s song and now he has sued them for copyright infringement. 

Some folks will tell you that it’s easier to beg for forgiveness than to ask for permission.  Lawsuit math doesn’t work that way.  According to the Complaint filed by Simon, a song as famous as “Bridge Over Troubled Water” could command a licensing fee of at least $1 million.  The suit seeks damages of $10 million and that doesn’t include the cost of the lawyers to defend the case and management’s time to help locate documents (i.e. evidence) and testify in court or at depositions.

Bigger companies have bigger financial shock absorbers than small businesses.  Those extra resources make it easier to handle litigation speed bumps.  For small businesses, however, a suit like Simon’s could be devastating. 

While marketers are always looking for innovative ways to reach their customers, it’s wise for you to look both ways before crossing the street.  That doesn’t mean you need to be lawyers or engage in minutia.  It only means you need to recognize potential problems before you get flattened by them.  Otherwise, the street you cross could become a “Bridge Over Troubled Water.” 

“Clearly it’s taken us time and a lot of hard work from Martha and everybody else to right that ship.”

Charles Koppelman, chairman of Martha Stewart Living Omnimedia and former music executive on why MSLO’s business performance needs to be looked at from the perspective of what the company was on the verge of becoming before Martha’s legal problems with the Feds and how far its come back.

Martha, you may recall, was convicted of obstruction of justice, fined, and sentenced to jail for her role in some ill-timed sales of Imclone stock.  At the time, the brouhaha was a big black eye to her brand and her company’s reputation.  Advertisers fled her magazine, her TV show was cancelled, and she lost her leadership position in the company she founded. 

Yes, we’ll never really know where her empire would have been today if her career hadn’t missed a beat with a timeout at Club Fed.  By the time you get out of jail things have changed and you don’t necessarily get to pick up where you left off.  In her case, the lost momentum is a lost opportunity cost she is still in the process of recovering. 

It just goes to show you how lost momentum is yet another consequence of ignoring the foul lines of legal playing field all businesses operate on.  Luckily you don’t have to fall victim to the same unintended fate.  You can use Legal Literacy to manage your legal risk before it manages you.  Why not order your copy today.