Martin Guitars Not "Made in the USA" ?

[Ted @ LA Guitar Sales]

Just received this editorial from Brian Majeski at Music Trades, which is an industry magazine for members of NAMM, and I wanted to share it. (Note that MT editorials are meant to be shared)


PENNSYLVANIA'S OFFICIAL TOURISM WEBSITE lists the Martin Guitar factory in Nazareth as a "must see" destination, encouraging visitors to "experience the intrigue and excitement as highly skilled craftspeople transform wood into music." Watching firsthand the complex process that turns rough lumber into beautiful guitars, the thousands who visit BTMeditorial each year leave with a deep appreciation of the instrument maker's art. An exceptional factory, a manufacturing tradition dating back to 1833, and credit for creating the modern flat top acoustic guitar are reasons Martin is a genuine American institution. Yet, as of this year, the company no longer labels the guitars that leave its Nazareth plant as "Made In USA." A reasonable person might ask, "how is this possible?" The answer lies with a poorly drafted California statute and the aggressive lawyers who exploit it.

California's Unfair Competition statute states that for an item to be designated "Made in the USA," "any article, unit, or part thereof," has to be "entirely or substantially made, manufactured, or produced" in the U.S. The California Supreme Court has interpreted this rule to mean that a "Made in the USA" designation requires that 100% of every piece of every part in a product must be made in one of the 50 states. Martin guitars, despite the labors of 600 craftspeople in Nazareth, don't make the cut because they incorporate imported woods, Asian and European built tuners, and synthetic nuts and saddles from Canada.

The California statute has been on the books since 1961, but until recently, Martin shipped "Made in the USA" guitars into the state without incident. State regulators apparently were willing to apply a more lax "reasonable person" standard in assessing country of origin. Not so local trial lawyers. In 2006, they mounted a class action suit against Leatherman Inc., alleging "deceptive and fraudulent advertising," because the company had labeled its hand tools "Made in the USA" although some component parts were imported. Leatherman was hit with a $13.0 million judgment, although it was later reduced on appeal. In 2012, Lifetime, a maker of basketball hoops and backboards, faced a similar legal assault. They settled for $485,000 and paid another $325,000 to a designated charity after burning through $500,000 in legal fees. No one disputed that their hoops and backboards were produced at a Utah factory: their crime was using some bolts and washers imported from Asia.

Faced with legal risks of this magnitude, Martin CEO Chris Martin took the prudent course, and earlier this year, replaced the "Made in the U.S.A." designation with "Crafted in Nazareth from components sourced from around the world." Martin's standing with guitarists worldwide, which rests on 182 years of quality production, won't suffer because of a labeling change. The instruments that have delighted generations remain much the same. Yet, the change is galling to a proud organization that has been an integral part of America's musical culture. It's like asking an artist to remove his signature from his painting. It also stands as a potent argument in favor of tort reform. Is there really a large contingent of Martin customers who claim injury because their guitars contained a few bits of imported plastic and metal? If so, we'd like to meet them. While we're waiting for them to gather, we conclude by noting that this costly absurdity erodes faith in our governing institutions.

[jpjr50]

Mine says "Made In Mexico" and sounds just like a Martin.

Don't care anymore, so tired of these pricing hikes just to get a "Made in the USA" label on a instrument. Gibson has been hiking prices higher and higher because of this. This will only force Companies to move out of the USA since they can't use the USA moniker any longer.

[RustyZombie]

I don't see the issue with accurate labeling.

[drplayer]

Beyond ridiculous! Don't know how much of the Martin market-share California has, but if it wouldn't be devastating to the company, one approach would be to stop shipping into CA. Or, maybe just label CA bound guitars with a different label that reads..."KMA California!"

[brencat]

Originally Posted by Ted @ LA Guitar Sales

Yet, the change is galling to a proud organization that has been an integral part of America's musical culture. It's like asking an artist to remove his signature from his painting. It also stands as a potent argument in favor of tort reform. Is there really a large contingent of Martin customers who claim injury because their guitars contained a few bits of imported plastic and metal? If so, we'd like to meet them. While we're waiting for them to gather, we conclude by noting that this costly absurdity erodes faith in our governing institutions. [/I]

Thanks for posting this Ted. I agree the nonsense these ambulance chasing class action lawyers get away with is disgusting. Sue for $10 million, settle for $3 million... pocket a 40% retention fee and distribute thousands of checks for $4.50 to the "victims". And people complain about those who work on Wall Street? We would kill to pocket these kinds of spreads.

It's a complete fraud and needs to be stopped.

[magazine]

That's a bunch of bull. Guess we have to be politically correct or get fined nowadays.

[muscmp]

pretty old news.

but, they don't sound the same!!!

play music!

[HHP]

When California was threatening to require microstamp firing pins on all all firearms, Smith and Wesson told them they would no longer supply state and local agencies and would also not be providing parts and service to the thousands in inventory. Discussion ended. Martin should think about the same and encourage Taylor and Gibson and everyone else affected to do likewise. Push back or get run over.

[Wildgift]

As a California lawyer who works in this field, I will confirm that this is just ridiculous. I do defense work. The plaintiff's bar has just gotten out of hand with this, and class actions are rampant on issues such as this.

I treasure my made in the USA D-18. It should be able to boast of this accomplishment.

[drplayer]

Originally Posted by RustyZombie

I don't see the issue with accurate labeling.

"Made in the U.S.A." is accurate? The wood may come from somewhere else, but it's just wood. Some of the tuners might be "made" elsewhere, but they're just tuners. And some of the nuts & saddles might be "made" elsewhere, but they're just pieces of plastic. Until it's all constructed and assembled into a guitar, the guitar isn't "made". So, if the construction and assembly of the guitar happens in Nazareth, PA U.S.A., then it's "Made in the U.S.A.". I'm not sure how it can logically be viewed any other way

[RustyZombie]

Originally Posted by drplayer

"Made in the U.S.A." is accurate? The wood may come from somewhere else, but it's just wood. Some of the tuners might be "made" elsewhere, but they're just tuners. And some of the nuts & saddles might be "made" elsewhere, but they're just pieces of plastic. Until it's all constructed and assembled into a guitar, the guitar isn't "made". So, if the construction and assembly of the guitar happens in Nazareth, PA U.S.A., then it's "Made in the U.S.A.". I'm not sure how it can logically be viewed any other way

If you're able to explain how having a tighter definition of "made in USA" is somehow less accurate, I'm willing to listen.

Important point here - this has nothing to do with California law enforcement. It is about the risk of civil lawsuits based on narrow interpretation of California law and the outcome of the Lifetime case. Even if Martin was sued and won, they would be out hundreds of thousands of dollars in attorney fees. CFM made a business decision to avoid the risk entirely.

Also worth noting, Martins were made in the USA prior to 1961 when they added that to the stamp. Most buyers will be able to discern the difference between the Nazareth-built Martins and the Navojoa-built Martins.

[vintageom]

Meanwhile, the rest of the planet places their own language-equivalent "Made in XYZ" on many of their products that also contain many foreign-sourced components.

This ruling in CA disallows a Marketing distinction or differentiation that other countries DO NOT WASTE TIME even thinking about. They just compete unfettered.

Will those same CA Courts sanction foreign products that sell within California that falsely say, "Made in Japan or Korea or China or Germany or ..."?

I fully understand Chris making this decision, just sad he had to do it, unless he pulls out of the CA marketplace.

[drplayer]

Originally Posted by RustyZombie

If you're able to explain how having a tighter definition of "made in USA" is somehow less accurate, I'm willing to listen.

I don't feel a need to explain it, because I never implied that a "tighter definition" was "less accurate"...only that labeling them "Made in the U.S.A." isn't inaccurate.

[HHP]

The ironic thing is, considering Taylor and Fender, there is no state producing as many guitars as California but they can't label them as such.