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Saturday, February 16, 2013

Smart negotiation tactic by musical band to keep their name


Here is the smart negotiation tactics used by the electro-pop duo The Postal Service. After selling more than 400,000 copies of their 2003 album, band members Jimmy Tamborello and Ben Gibbard received a cease-and-desist letter from the United States Postal Service (USPS) citing infringement of its trademarked name. The dispute could have turned ugly. The USPS was concerned about a dilution of its name in the marketplace. Given their recent success, the band members were reluctant to change their name.

Yet during negotiations, the band managed to turn the dispute into a syner- gistic opportunity by identifying the priorities and non-competing preferences of both sides. Tamborello and Gibbard pointed out that the losses the USPS had suffered to Internet and e-mail communication were large, especially among the age cohort of the band’s fan base. The USPS agreed to grant a free license allowing The Postal Service to continue to use its name. 

In exchange, the band agreed to print a trademark notice on its albums, to promote the use of the USPS by its young fans, and even to perform at an annual USPS event. As this story illustrates, when negotiators take stock of each other’s priorities and resources, they often will spot opportunities for wise trades. 

From Harvard's Program on Negotiation,
 Effective Conflict Resolution Strategies to Avoid Litigation
 
www.pon.harvard.edu/publications  

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