Ad Magic Wins Trademark Lawsuit
After a four-year dispute between industry companies, a federal jury has decided in favor of New Jersey-based Ad Magic (asi/105162), ruling that its corporate name and Web sites do not infringe upon the trademark rights of California-based Advertising Magic Inc. (asi/111425). Ad Magic had brought suit against Advertising Magic in 2006, seeking a declaratory judgment, following the receipt of a cease and desist letter from the West Coast company. “I feel like I have my freedom now and I can get back to growing my company,” says Shari Spiro, president of Ad Magic. “I think this shows that you should fight for what you believe in.”
 
According to Spiro, Ad Magic pursued legal action first after being threatened with a $450,000 lawsuit by Advertising Magic. Later, Spiro says Advertising Magic attempted to confiscate Ad Magic’s domain names through an international body that manages Internet registries. “I wanted this decided in a court in the United States, not by some person in Australia,” says Spiro, whose company also operates as a supplier, selling poker chips.

Court documents show Advertising Magic made legal counterclaims, asserting trademark infringement, false designation of origin, unfair competition and the violation of The Uniform Deceptive Trade Practices Act. “I’m completely disappointed by what happened,” says Rosalind Boukis, president of Advertising Magic. “I don’t think the jury understood what was going on. I thought our trademark was protected. They can say that we’re not competitors because they’re in New Jersey, but we absolutely play in the same space on the Internet.” According to Boukis, some of Advertising Magic’s clients have confused the two companies. “We’re called Ad Magic by a lot of people,” says Boukis. “Clients and suppliers shorten our name. We felt like we had to protect ourselves.”

Spiro says she tried to negotiate an agreement with Advertising Magic prior to taking the case to court. “I called them, but we couldn’t work it out,” she says. Boukis does not plan to take any additional legal action. “It’s a lesson learned and I’m unhappy, but I won’t appeal,” she says.

Court records show both Ad Magic and Advertising Magic operated without knowledge of each other for roughly eight years. A third company with a similar name and ASI number, Ad Magic Specialties (asi/105161), was not involved in the lawsuit.

Video Report: Industry News Of The Week
In a new feature, Counselor PromoGram is offering a video news report that will highlight the top stories every week. Called Industry Update, each episode will detail the most important trends and news items impacting the ad specialty market.

In this episode, we break down ASI’s latest quarterly industry sales report, examine a trademark lawsuit involving two industry firms, and discuss an acquisition by a Counselor Top 40 distributor. Click here to watch Counselor PromoGram’s Industry Update.

If you have any news you’d like to see covered on Industry Update or in Counselor PromoGram, please send it to newsdesk@asicentral.com.

InnerWorkings Reports Q4 Revenues
Counselor Top 40 distributor InnerWorkings (asi/168860) reported this week that total year-over-year revenues decreased 4.5% in 2009, falling to just more than $400 million. For the fourth quarter, InnerWorkings announced sales of $107.9 million, coming in slightly below analysts’ forecasts. By contrast, for full-year 2008, InnerWorkings reported a 45% year-over-year increase in revenues, jumping from $288 million to $419 million. According to company executives, roughly $85 million of InnerWorkings’ 2008 revenues were drawn from ad specialty sales. “I am proud of the way the company navigated the harsh economic conditions in 2009,” said Eric Belcher, CEO of InnerWorkings, in a statement. “We are entering 2010 in a strong financial condition, with increased market share and an outstanding customer retention rate.”

For 2009, InnerWorkings announced it generated $51.6 million in new accounts, while increasing cash flow by 17% to $41 million. The Illinois-based company also diversified its client base, decreasing customer concentration among its top 10 accounts to 29% of overall revenues. InnerWorkings acquired several new clients in 2009, including SKYY Spirits, information management services company Iron Mountain, and Clear Channel Communications. In the fourth quarter, InnerWorkings also claimed strong customer retention, conducting business with every one of its top 25 clients. “The entire organization is energized and excited about executing on our growth strategy in the coming year,” Belcher said.

In January of 2009, InnerWorkings laid off approximately 15% of its non-sales workforce, saving an estimated $6 million annually. In an interview last year with Counselor, Belcher called the decision to lay off workers “difficult,” adding that “the impact of the global economic downturn has impacted our promotional products and print business proportionately.” Despite the recession, Belcher predicted at least 7% growth for his company in 2009.

Podcast: How To Increase Creativity
On Tuesday’s ASI Internet Radio Show, the hosts took calls from audience members looking for ideas on how to ramp up their creativity. Are you searching for clever new ways to impress your clients and win business from prospects? Check out this podcast.

Click here to listen to this stimulating segment from Tuesday’s show.

If you’d like to check out a recording of the entire online radio show, go to www.asicentral.com/radio. And, don’t forget to join us Tuesday, February 23, for our next broadcast. Log on to www.asicentral.com/radio at 10:30 am eastern time and give us a call at 215-953-4979 or e-mail us at radio@asicentral.com to participate on the show. We want to hear from you.

Proforma Acquires Distributor
Counselor Top 40 distributor Proforma (asi/300094) has announced the addition of Carrollton, TX-based Fine Incentives, Inc. (formerly asi/194085) to its network. Named Proforma Fine Incentives, the new affiliate will be led by co-owners Stanley Fine and Mike Egnal. “This transition was the next step in exceeding our customer’s expectations,” said Egnal. “Our clients know us for providing them with customer service that is second to none. With the strength of Proforma behind us, we will be able to maintain this level of service while expanding our offering and growing our business.”

Backed by an expanded product offering which includes printing and multimedia services, Fine and Egnal expect to increase sales from $3 million to $7 million within the next several years. “We’re looking forward to utilizing Proforma’s support to substantially increase our sales by further penetrating our existing accounts and adding new accounts,” says Fine.

Having launched their original company in Los Angeles, Fine and Egnal relocated the business to Texas in 1993. Combined, the pair has 25 years of experience in the ad specialty industry.

Take The State Of The Industry Survey
Counselor is currently polling professionals in the industry – both distributors and suppliers – to see how the market did in 2009 and to get impressions on where the industry is headed in 2010. We need your input. Please take some time to click the appropriate link below and complete the annual State of the Industry survey. Your responses will remain anonymous and you'll be helping to create Counselor's annual State of the Industry report.

Distributors click here to take the distributor State of the Industry survey.

New Course Available On ASI Education's OnlineLearning Center 
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for distributors to get educated. Here are some of the courses from our New Distributor Success Track available now:

NEW: Green Apparel From A-Z: Grow Your Eco-Wear Business. Wearables makes up 30% of the nearly $20 billion ad specialty industry annual sales -- and that includes its growing eco-wear subset. In this course, we’ll teach you about the most fundamental eco-friendly fabrics, the important global standards and practices, and the tips to help sell eco-wear and improve your business. 
Course Track: New Distributor Success
* Nailing Down the Basics
* Write Your Business Plan
* Marketing Your New Business
* Steps to Selling Success
* Creative Case Studies
* Avoid These First-Year Pitfalls
* Managing Your Business
* Wearables Crash Course
* Building Profitable Client Relationships.
Coming Next Month:
* Social Networking Tactics That Deliver Results

ASICentral: Poll Results: Tiger Woods' Woes
Fore! Look out, Tiger Woods - according to our latest poll results, your brand is in trouble. Last month, we posed the following question on ASICentral: Are you less likely to sell Tiger Woods branded products to your clients in light of recent news? 

Check out the results in our blog here, and feel free to post comments too!

Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com.

Also, follow ASICentral at: .

In The News
Adventures In Advertising (asi/109480) has added the following new affiliates: Deborah Antonucci, Pegasus Promotions, Virginia Beach, VA; Valerie Backo, Creative Advantages, Hermitage, PA; John and Terri Conti, Manatee Productions, Ponchatoula, LA; Ted Davies, Paradigm Partners, Edina, MN; John “Hu” Dunn, The Necessary Company, Le Claire, IA; Melissa McCauley, Loco Branding Solutions, Charleston, SC; Rod Toomey, Adlers Promotions, Rochester, MN.

American Solutions for Business (asi/120075) has announced that Justin Zavadil, director of vendor relations, has been named to the 2010 “Rising Stars” list by Print Professional magazine. Zavadil is 29.

Andrew Philips Collection/Millennium Leather, LLC (asi/36205) is offering preferred status to distributors who sign up for its new loyalty program. Benefits include special pricing, discounted setup and rush charges, and free sample kits. For more information, go to: www.andrewphilips.com.

Boxercraft (asi/41325) has introduced a new custom tie-dye line, offering options on a variety of apparel. For more information, go to: www.boxercraft.com.

BroderBros., Co. (asi/42090) has announced that it has become a full-line supplier of the complete Anvil collection. Broder will carry all the styles, colors and sizes that the brand offers, including T-shirts, fleece items, sport shirts, hats, bags and towels.

Heritage Sportswear, Inc. (asi/60582) has added the Kariban line to its 2010 offerings. For more information, go to: www.heritagesportswear.com.

Hub Pen Co. (asi/61966) was ranked as a top supplier by Newton Manufacturing Company (asi/283300) at the 2010 PPAI Expo in Las Vegas, NV.

iPROMOTEu (asi/ 232119) has announced that 20 distributors affiliated with the company in January, representing an estimated annual sales volume of $4.8 million. Among the new affiliates are: Jerry Abercrombie, AAA Specialty Wholesale, Inc., Murrayville, GA; Maria Barletta, New England Print & Graphics, LLC, Hamden, CT; Eileen Davenport, Davenport Marketing, Inc., Setauket, NY; Jennifer Grigorian, iHeart Promos, Miami, FL; Edward Grisso, Valley Promotional Products, Woodland Hills, CA; Thomas Gottcent and Steve Bleser, Addlogos, Charlotte, NC; Robert Kolar, Promo Super Center, LLC, Boulder City, NV; Peggy Kotara, CorporateXpress Marketing, Flower Mound, TX; Nancy Lysne, Bizgifts, Renton, WA; Ronald McComsey, Penn, Inc., Lancaster, PA; Spencer McMillian, BrandID, Inc., Kansas City, MO; Vernon Muse, M2 Muse Marketing LLC, Raymond, MS; Terry Reynolds, Letsch Advertising, Springfield, MO; David Rogers, Island Promotions, Fishers, IN; Michael Saylor, One Stop CPS, Douglas, GA; Diane Spinozzi, It-DS Spinozzi, Inc., Plantation, FL; Michael Waskovich, NTS Promotions, Ltd., Scranton, PA; Lori Wood, The Doodler, Colorado Springs, CO. 

Posh Xessories, Inc. (asi/79028) was honored with the 2010 Supplier Star Award ($50,000-$250,000) at the PPAI Expo. The company also won the “Best of Supplier” Star Award, based on receipt of the most votes among all other participants.

Premier Promotional Group has established the Premier Group Scholarship for Academic Achievement, to be awarded to a child of an employee or to an employee of a member company. Premier Group will announce two $1,000 scholarship winners in April.

The Icebox (asi/229395) has been selected as the T-shirt vendor for three major divisions of the American Cancer Society’s Relay For Life. The company will provide T-shirts for events in IN, MI, TX, OK, KS, NE, MO, HI and CA.

People On The Move
Debco Bag (asi/48885) has announced that Jules Scheck Associates will provide sales representation in 13 Northeast states.

Jornik Manufacturing Corp. (asi/63549) has hired Dana Serra as production manager and Shane Cross as warehouse manager. The company has also added Rota “Nicky” Enkelejdi to its silk-screening department.

Stitch Designers (asi/741145) has announced the addition of Azra Beganovic to its customer service team.