February 28,
2013 by in UnCategorized 
By Home Furnishings Business in on March 1, 2013
The increasing role of Internet sales and social media in their business has created new legal considerations for home furnishings retailers.
While knockoffs remain an issue in furniture land, and retailers must watch that they dont get caught up in vendors legal disputes, the open range of the social media world can make it easy to run afoul of other areas related to copyright infringement.
Speaking of knockoffs, retailers should be aware of the implications of the America Invents Act, said Jack Hicks, an attorney specializing in patent and intellectual property law at Womble Carlyle Sandridge & Rices Greensboro, N.C., office.
Its the most significant change to patent law Ive seen in my career, Hicks said. The changes primarily are to address patent situations and to harmonize U.S. law with the rest of the world.
The act is particularly significant for those doing international business and online retailingto expedite quality patents and the time it takes to litigate those patents.
One particular change relates to patent-marking requirements.
If retailers suspect theyre buying a design knockoff, I suggest they see whether the organization has sought patent protection (for the item in question). Hicks said. Now, patent owners can identify a piece on their Web site when they have patent protection.
This is one way retailers can try to gauge their exposure, but its not a safe harbor for several reasons: First, patent protection is only one of several forms of protection that apply to furniture. The others are copyright and trademark. Second, new patent laws pertain only to patents.
The acts biggest change is a switch from first to invent to first to file, which comes into play when more than one person comes up with a new design.
Overall, I dont see major impact on retailers or the prevalence of knockoffs in the industry, Hicks said. As the economy picks up again, well see an uptick in successful new products, and an uptick in people emulating that success.
One might think that a difficult economy would lead to more companys trying to emulate anothers success with a particular product, but that hasnt been the case said Jake Wharton, Hicks colleague in Womble Carlyles Winston-Salem, N.C., office, who also specializes in patent and intellectual property law.
In the time Ive been observing this, counter-intuitively the recession did not result in an uptick of knockoffs, Wharton said. My take is that of the number of companies inclined to knock off, some of those have gone away.
And if you watch whats going on, not as many rights owners are putting forth the resources to go after the closer calls. Is it worth it for them to pursue in a down market. Unless its a major seller it might not be.
TROLL WATCH
Retailers should be aware that there are folks out there looking to take advantage of copyright law, and not just for furniture design.
Seventy percent of the infringement cases Im seeing deal with trolls, Wharton said. Thats a disparaging term we use for non-practicing entities.
Trolls are people or organizations who basically try to make money on patents, but had no hand in the development of the products in question.
These are people trying to monetize patents. Since patents can be bought and sold, you have investment groups pooling their resources to buy patents, Hicks said.
They arent practicing the technology, theyre exploiting it.
The America Invents Act tries to curtail trolls, but their activity is legal. Theyre collecting royalties, and theyre filing suits left and right. Every Fortune 500 company gets a letter from one every two or three months. The top five furniture companies have gotten these, based on their Web site activity.
Example: Lets say a software developer is helping ACME Furniture Store develop its Web site, which needs search functionality.
Wharton cited Kerlora Systems, whose targets to date include Target Stores, Office Maxx, Office Depot and Nebraska Furniture Mart, claiming a patent on searching with parameters.
Kerloras not going to sue the software developer whos making the Web sitethats killing the golden goose, Wharton said. They go after the retailer for an e-commerce functionality license.
Several companies, including Nebraska Furniture Mart, have filed counter-suits against trolls. (Check this link.)
One of the frustrated targets of a recent troll counter-claimed for violation of racketeering regulations, Wharton noted, adding that litigation can cost retailers a lot of money. Its cheaper to pay $10,000, $50,000 than to pay for patent litigation.
The retailers mentioned above are large companies, but smaller ones can draw trolls attention.
If Mom and Pop go to their nephew to design their Web site thats who the troll will go after, Wharton said. Thats one advantage to going with an established company (for Web site design)theyll fight it.
SOCIAL WHIRL
Social media and social media-related issues are hot topics for all brands, not just retailers, said David Ervin, a partner in Kelley Drye & Warrens Washington, D.C., office who focuses his practice on the interplay between intellectual property and advertising law.
And the social media arena brings on its own set of legal issues for retailers looking to make connections with existing and potential customers there.
Pinterest presents the biggest intellectual property challenges (in social media) for retailers, Ervin said. The primary issue is copyright risk. Pinterest is set up to share the things people love.
He offered several rules of thumb for retailers using Pinterest. First, be aware anything you pin to your board can be pinned to anyone elses board. If it gets re-pinned, you cant take it back, it goes viral.
Only pin images you own or have a license to use, Ervin said. If you are a retailer, and have a relationship with a manufacturer, that is an appropriate image to pin.
If you dont have a relationship you might not have a right to use it. The manufacturer might have a relationship with a competitor retailer that it wants to protect.
He noted that retailers can run into trouble pinning something from another Web site. Just because you can pin an item doesnt mean you can use it on your board.
If theres a pinning function (the little P pin-it app) on a Web site related to the image, the site is free game to pin but you could still run into trouble, Ervin said. The question is Do I own it, or do I have the right to use it? Do I have a supply and distribution agreement with that manufacturer?
The purpose of your use of the image matters. Its hard to argue that any purpose youre using it for is not financially driven. Is the use communicative in nature? Is it something the owner of the copyrighted work might be likely to charge you money to use?
Wharton at Womble Carlyle noted that the use of imagery on retailers Web sites and in their social media presence has copyright implications.
Weve seen how sites like Pinterest will be used as a sword and a shield, he said.
Say you post a high-end collection beside your lower-end, comparable offering.
Youve opened yourself to exposure to run afoul of (design) rights they might hold, Wharton said. If you put up a collage of images (you dont have rights to) in the best case youll receive a letter demanding to take it down.
Whenever youre posting YouTube videos, Facebook photos, be cognizant of the rights associated with those images. HFB
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Business Strategy on February 28, 2013
Full-line home furnishings supplier Abbyson Living has opened an East Coast warehouse and distribution facility in Virginia.
Though Abbyson Living has always shipped nationwide from its California home base, East Coast customers were often waiting four to six weeks for product. But now, the company's 80,000-square-foot warehousing and distribution facility allows it to service East Coast consumers in as little as five to seven business days.
"Though we've long been servicing our clientele from our distribution center in California, we realized there was an opportunity to be even more efficient in taking care of our customers' needs," said Doddy Rafieha, vice president of Abbyson Living. "Opening our new warehouse and distribution facility in Virginia allows us to get product to our East coast consumers faster, with the same level of customer service they've come to expect from Abbyson Living."
The new Virginia facility is an extension of Abbyson's drop-ship program, further providing white-glove delivery service to the East Coast. Having a facility on the East Coast also supports Abbyson's green initiative to reduce their carbon footprint by reducing the travel time required to deliver their quality home furnishings.
"We're proud of how our company has grown, and continue to research new and inventive ways to become more effective and dynamic in meeting our customers' needs while deepening our commitment to quality," Rafieha said. "Moving forward with our Virginia warehouse, we're excited to see what heights we can reach next!"
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Bedroom on February 28, 2013
The U.S. Department of Commerce has initiated investigation of more than 200 Chinese wood bedroom furniture manufacturers for an administrative review of the antidumping order on bedroom furniture from China.
The review will cover 2012 shipments of the subject merchandise to the U.S. market. DOC plans to issue its results no later than Jan. 31, 2014. More than 200 manufacturers have been named as respondents to the investigation.
Click here for a the complete Federal Register notice, which includes a list of Chinese manufacturers named for investigation--116 of currently qualify for a separate duty rate lower than the 200-plus percent "all China" rates typically resulting from such reviews. Commerce, for example, has issued a preliminary duty of 261.01 percent in its review of 2011 wood bedroom furniture shipments from China.
Eighty-nine of the companies currently have no separate rate.
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Obituaries on February 28, 2013
Louie Blumkin, chairman emeritus at Nebraska Furniture Mart, has died at age 93.
s the only son of Rose "Mrs. B" Blumkin, Louie Blumkins lifes work was his familys well-being, Nebraska Furniture Mart and giving back to the community. For more than 75 years, Louie served generations of customers. Louie developed a keen knack of knowing what his customers wanted early on. Working side-by-side with Mrs. B, Nebraska Furniture Mart developed into a great place to shop. He could remember generations of customers by name, by what they bought and when they made the purchase. On the buying side he had no equal. He worked all the major markets, never took notes and made a lot of great deals for his customers. His handshake was his bond; his reputation and word were solid gold.
Blumkin was born June 27, 1919. He was a champion diver on the Tech High School swim team and is in the Tech High Hall of Fame for the Class of 1938.
Louie was halfway to Pearl Harbor on Dec. 7, 1941, when his transport was turned back to San Francisco. He then went to Europe in 1942. In 1944, he landed on Omaha beach with the Third Armored Division under General George S. Patton. His battalion was sent to relieve troops at the Battle of the Bulge, and he participated in the liberation of Dachau concentration camp. While serving in the Army, he received the Good Conduct Medal, The Purple Heart and The European Theater Medal-along with four Bronze Stars signifying his years of service.
Louies passion was golf. He practiced and played every chance he had, and he was a huge Nebraska football fan.
Since 1945, Louie ran Nebraska Furniture Mart. In 1983, the family sold a majority interest in the business to Berkshire Hathaway and began a great partnership with Warren Buffett.
Nebraska Furniture Mart has continued to expand, opening stores in Des Moines in 2000, Kansas City in 2003 and a future store in Dallas/Fort Worth in 2015.
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Bedroom on February 28, 2013
Case goods and upholstery vendor Fine Furniture Design is setting new opening price points for its bedroom furniture.
The company will launch four group of value-priced bedroom furniture under the brand Circa at the March 11-12 High Point Premarket. The Circa line will be priced 25 percent lower than Fine Furniture Design-branded products, providing a new price point range that will expand the company's distribution base and demographic appeal, according to Jim Adams, vice president of product design and marketing. Queen-sized beds will be priced to retail at $799 to $899.
"We've been working on this program for about a year," said Adams. "The goal is to offer existing customers and other retailers that we don't currently sell a reliable source for stylish bedroom furniture that would appeal to younger consumers operating on more limited budgets. We decided to test the waters at the October market with one collection, and that was so well received that we knew we were on the right track."
Styling is updated traditional with a hip, casual edge to appeal to a "younger mindset," said Adams.
The new line will be produced at a facility in Vietnam that is owned and managed by Kim Shu, a veteran furniture plant manager who once worked for Fine Furniture Design's founder, Larry Moh. Fine Furniture Design will continue to produce its namesake line at its dedicated, state-of-the-art facility in Shanghai.
"The Circa line will be produced to our standards in Saigon, with its own specifications and price points," said Adams. "We're introducing a range of designs that take advantage of this plant's strengths, working with local woods such as acacia and mindi and delivering very strong values."
The initial Circa line being shown at premarket will include:
* Circa 1310: A contemporary, Arts and Crafts-influenced group in mindi and hand-hewn, quarter-oak veneers with a grayish-brown, textured finish and distinctive, rectangular metal pulls.
* Circa 1320: A soft, casual European lifestyle group in acacia with a sophisticated, multi-tone finish and heavy bale hardware with shaped backplates.
* Circa 1330 and 1331: An updated traditional group in mahogany in two distinct finishes--a deep brown, wire-brushed finish (1330) or rubbed through, transparent black (1331)--with "sandwich" pull hardware in burnished brass.
Circa 1260 and 1261: A transitional whole-house collection in oak solids and quartered oak veneers with two finish options--Straw (1260) and Midnight (1261). Pull and knob hardware in a Sunset metallic finish gives the collection a fresh, contemporary feel.
Each of the new groups features nine pieces, including a dresser, mirror, two chests, two beds, two nightstands and bench. Upholstered headboard options are available, and each group features an "eye candy" chest for additional visual interest, said Adams. Examples include a smaller-scaled bachelor's chest with a unique metallic finish, a metal and wood nightstand with floating drawer design and a stacked, drawer-on-drawer chest with uniquely shaped bun feet.
Construction features include self-guided, full-extension drawers; full-depth cases; solid tops and frames on many pieces; and quality, multistep finishes.
All four of the new groups will be presented in their entirety at premarket, with shipments slated to start in June. The two groups introduced in October--Circa 1260 and 1261--started shipping in February and are now hitting retail floors. The Circa 1260 and 1261 groups also include casual dining, entertainment and occasional.
"If the Circa line takes off the way we expect, we'll look to expand these new bedrooms into other categories at future markets," said Adams, adding that he expects Circa to attract new customers. "Circa offers a range of popularly priced bedroom with a level of quality and style that is much higher than other commodity-type products on the market today. The scaling and woods are designed to fit the lifestyles of younger shoppers as well as consumers looking to downsize."
During the April 20-25 High Point Furniture Market, Fine Furniture Design also will introduce the 80-piece Biltmore collection. Part of the Biltmore For Your Home program, the furniture collection is Fine Furniture Design's first licensed offering. The line includes 60 bedroom, dining room and accent furniture pieces and 20 upholstery pieces, all inspired by heirloom furnishings in the 250-room chateau built by George Vanderbilt in Asheville, N.C., in 1895.
Fine Furniture Design shows during the High Point Premarket and Market in the International Home Furnishings Center's Hamilton wing, space 800.