The Newform Audio Smear Campaign

[Deang]

Since December of 2000 and possibly before, there has been an anti-Newform smear campaign underway on the internet to damage Newform, defame its products and call into question the integrity of the company and its owner/designer. The attacks have been made in the form of unceasing and vitriolic commentary any time Newform or its speakers are mentioned. It has also taken the form of attack posts under false names. This smear campaign has been well thought out, extensive and malicious. One of the key facts to keep in mind is this: The perpetrator was posting false attack reviews under different names months before he ever heard Newform Research Loudspeakers.

The Aim of the Attacks:

We believe the attacks on Newform have been aimed at:

Reducing the volume of discussion of Newform products on the web;

Diminishing the credibility of the company, its designer and its products;

Eliminating discussion of Newform on audioasylum.com by instigating flame wars;

Dramatically reducing Newform's rating on audioreview.com;

Increasing the apparent number of listings and decrease the listed resale value of Newform speakers on audiogon.com; and

Reducing the resale value of Newform products in the Orion Blue Book.

The Means of the Attack:

We have information, which reveals that some libelous postings are false and appear to be written by the same person under various aliases. The magnitude of the smear campaign is as follows:

230+ attack posts

25+ false reviews

at least 2 stolen identities

16+ false identities

many different dialup locations, IP addresses and servers.

Obviously, a great deal of time and planning has gone into executing the smear campaign.

The main perpetrator has been identified and has reluctantly taken responsibility for a huge number of malicious posts as listed in the CONFESSIONS section. Despite acknowledging that his statements had no basis in fact and that he has done material damage to Newform. He claims that he posted false reviews under false names to balance what he thought were overly enthusiastic reviews on Newform speakers. He then claims that he bought a pair of Newform speakers because he thought they would solve some of his audio problems. Few would regard this as a credible tale.

In fact, the events surrounding this individual's purchase of a pair of loudspeakers was so convoluted that John Meyer (Newform's owner/designer) began to keep notes on the individual. This is the first time in his life John Meyer has kept notes on anyone. There were warnings from several Newform customers about the intent of the perpetrator and these were borne out as everything the perpetrator did seemed to be aimed at inflicting damage.

The individual made numerous unique complaints about the performance of the loudspeakers and had nothing good to say about any aspect of their performance. His comments were inconsistent and conflicting.

For return, the perpetrator packed the Ribbons in a never seen before fashion and shipping damage was the inevitable result. The perpetrator put the speakers up for sale on audiogon.com at the extremely low and degrading price of $1200 even though he was getting a full refund from Newform as he had shipped them back.

Although we did not realize it at the time, this "purchase" was just one part of the exceptional series of events of the larger smear campaign. Only in November, 2001 after weeks of intensive investigation did it become absolutely clear that the "problem customer" was, in fact, the perpetrator of the majority of the attacks both before and after he ordered or ever heard Newform loudspeakers.

Despite statements to the contrary, the perpetrator was not naive. He has, in fact, worked in the audio industry and has in-depth knowledge of both the audio business and web server programming.

Unfortunately, it is assumed by some people that well-established laws on slander and libel do not apply or can be circumvented on the internet. This is simply not the case.

Newform regrets the misuse of the power of the web not only in the context of our own losses but in the suspicion it throws over all web commentary. However, the web will continue to grow and prosper despite manipulation by illegitimate posters. In any public forum, care must be taken to ensure that public debate thrives. Malicious intent can never be allowed to disguise itself as legitimate defense for the purpose of the manipulation.

Obviously, there are a number of people who see the web as an impenetrable curtain of anonymity from behind which they can inflict any kind of damage they wish. This is a false assumption. In the course of our investigations we have been successful in obtaining disclosure of the true identities of those posting false and defamatory information concerning Newform and its products.

With vigilance, the web can fulfill its potential as an unparalleled public forum and a level playing field for all legitimate companies and honestly presented points of view.

In the discussions of the smear campaign, it should be said clearly that Newform does not regard its loudspeakers as being above criticism. Our loudspeakers are not perfect. They do many things very well but are not the ideal fit for every ear in every room. No loudspeaker is.

However, Newform speakers have an exceptional approval rating from their owners. We hope that people pointing out what they feel are Newform's weaknesses in a legitimate and constructive fashion are not mistaken for corporate moles out to damage Newform's reputation.

Also, any public speculation as to which company might or could have been associated with the smear campaign will only set back the cause of clarity and integrity of the discussions on the web site. If you have any concrete information or suspicions, please send it to us directly rather than broadcast it on the web. We do not want to see another company smeared the way we have been.

Perhaps as a web based factory direct business we were open to this kind of vandalism as it is still early days for the internet. The sites involved however have adopted new policies which both identifies and limits this type of abuse. This internet attack has cost Newform a great deal of money, time and anguish. We have spent hundreds of hours successfully investigating the smear attacks. We have employed a top level legal firm and forensic auditor to track down the perpetrators. The losses in sales and the costs of bringing the expert resources to bear on the issue are a strain for a small company. However, we are now in a position to reclaim our reputation and go about the business of developing and building our unique audio devices.

The best thing that can happen for Newform and the health of the web is a full disclosure of the extent of the smear campaign and its motivations. This will allow Newform to get on with the business of supplying audio products that many people involved with the home entertainment hobby enjoy.

Since it is clear there is a yet-to-be-exposed party very interested in putting Newform out of business, our investigation will remain ongoing until all the responsible parties are identified and Newform's considerable losses made good.

If you have any information regarding this case, please contact our lead legal investigator Eryn Pond at:

Gowling LaFleur Henderson LLP

Suite 4900

Commerce Court West

Toronto, Ontario

M5L 1J3

Direct phone: (416) 862-4465

Fax: (416) 863-3565

email: eryn.pond@gowlings.com

I, MikeCh of xxxx, Washington admit that I have posted defamatory comments regarding Newform Research Inc. (Newform) and its founder, John Meyer, on various websites including Audiogon.com, AudioREVIEW.com and AudioAsylum.com, using the moniker MikeCh and other false identities.

I acknowledge that there is no factual basis for the defamatory comments regarding Newform, its products and its founder, John Meyer.

I apologize to Newform and Mr. Meyer for damaging their reputation, disparaging Newforms products and causing business losses to Newform as a result of my postings.<?XML:NAMESPACE PREFIX = O />

I hereby acknowledge and agree that as of this date, I will not make or publish any further statements regarding Newform, its products or Mr. Meyer. For greater certainty, I will not publish any statements on any websites, Internet chat-rooms, or any electronic medium of any kind whatsoever, including e-mail, in relation to Newform, its products and its founder, John Meyer.

I further acknowledge and agree that by July 25, 2002, I will seek to obtain the removal from the Internet of all postings published by me on the Internet, including those postings published by me on AudioREVIEW.com, AudioAsylum.com and Audiogon.com.

I sign this freely and without duress.

Dated this 24 day of July, 2002.

This document should have included the entry:

On June 18, 2001 I posted a review on AudioREVIEW.com as Robert.

Full disclosure of my complete involvement and knowledge of others is posting critical comments of or concerning Newform Research Inc., its products and its founder, John Meyer:

On 05-31-2001 I posted a review on AudioREVIEW.com as James McRenolds.

On 08-18-2001 I posted a review on AudioREVIEW.com as Mike.

On 08-21-2001 I had AudioREVIEW.com remove the review dated 08-18-2001.

On 08-21-2001 I posted a revised review on AudioREVIEW.com as Mike.

On 09-16-2001 I posted a review on AudioREVIEW.com as Rusty.

On 11-09-2001 I posted a review on AudioREVIEW.com as JJ Livingston.

On 12-02-2001 I posted a review on AudioREVIEW.com as Jim Robinson.

On 12-17-2001 I posted a review on AudioREVIEW.com as Randolph Hurst.

On 12-27-2001 I posted a review on AudioREVIEW.com as Marcus.

On 12-27-2001 I posted a review on AudioREVIEW.com as Tim Regmont.

On 01-03-2002 I posted a review on Audioasylum as JM Hassings.

On or about 08-01-20001 I posted a classified ad on Audiogon as MikeCh.

On 09-01-2001 I placed my AudioREVIEW.com review dated 08-21-2001 on a webpage

On or about 10-01-2001 Martin Leach (AA webmaster) added a link on his website to my html document noted above

This was done without my request and only recently became known to me.

On 09-27-2001 I received an e-mail from Brian Cheney (VMPSaudio@aol.com) describing his impressions of the Newform speaker.

On or about 12-01-2001 I posted Brian Cheneys unedited e-mail to me on a password-protected web page

Between roughly 12-01-2001 and 03-01-2002 I circulated the password to access Brian Cheneys unedited e-mail to half a dozen individuals who wrote to me requesting it. I do not have details of the specific recipients.

On or about 12-19-2001 I posted a classified ad on Audiogon as Randolph Hurst.

Following are the responses to this Smear Campaign that I have received. Names, email addresses, personal comments on the perpetrator and company references have been removed. Typos and grammar are untouched.

I read this entire document, as if it was a Novel. I was glued to the set and wasn't surprised that it was all him. I'm pleasantly surprised that you were able to dig all of this up.

6. John

This may be old news. But I just went to your website and saw your response on those stupid and harmful "reviews" and "threads" got out of proportion. You have set an example in the audio arena (if not internet) that slander is not immuned and tolerated.

Best wishes on your business. I believe you and your products will prevail!

10. Hello John,

I've been thinking on and off for over a year that I should make a review of your speakers on audio review.

It is discouraging to see this happen to you. I've always felt that you are a person/company of integrity.

I will do my best to place a review and some well deserved good comments of you and your products as soon as possible.

P.S. I will post my experience with your speakers

XXXXX Most of us know that the open forums are basically the same as the majority of the internet, a "party line" with a telephone line around the world. Therefore most of us take the postings with a large "grain of salt." I can say that personally, I have waded through postings such as Planar asylum, Audioreview.com etc. and I had taken no notice of extreme, non-constructive postings and therefore I still see Newform as an excellent company with I am sure an excellent product.

P.S.: Feel free to quote me - As I said I am a very happy victim ;-)

26. Very sorry to hear about this BS John,

The song goes, "Only the good die young."

Seems like someone is out to do that to Newform Research.

If there is anything I can do to help, please let me know.

27. Dear John,

XXXXXX I was not aware of the smear campaign you have been experiencing. There are, it seems XXX people in the world who take it upon themselves to carry on these activities and one can only hope that people who are familiar with your product can and will come forward to speak on your behalf. I have not been able to purchase the the R30 units I wanted because I ran into a design problem in my project and have not come up with a solution yet. However, I wish you a speedy reputational recovery.

Many Thanks Again...

Warmest Regards,

33. Dear Mr. Meyer,

My heart goes out to you and your workers and I am so happy to hear that you are resolving this issue.

I had heard rumours of smear campaigns and read at least one review of the

R645's that made absolutely no sense. I know this because I own a pair. They are a great product, and I don't say this simply because I bought them and want to justify my purchase through some sort of self-delusion.

Best wishes for the future and I'm looking forward to hearing more about your new products.

I am sorry to hear that your great R645 has been defamed. Is that idiot from the state of Delaware?

(nope - JM)

I had some problems with the same guy, Some of the issues were my fault but when I read about this I realized it must be the same person that you were talking about. I'm sorry to hear that you've had to endure this kind of treatment.

I have read your "investigation" with much interest. I have some experience on the other side. A year ago I had some problems with a bicycle and I posted a negative review on mtbreview - affiliated with audioreview.com - only to be negatively attacked by a number of parties. I believe just as much of this happens on behalf of or for manufacturers as your case. While unfortunate for Newform, I don't have a lot of sympathy for your tracking this party down. No doubt you have a franchise to protect, but your products should speak for themselves - Evidently you had to protect your high audioreview rating, just like the bike manufacturer that I posted a negative review of. This pursuit no doubt will stifle free expression.

(The point is that you actually bought your bike and used it before you posted a review. MikeCh was posting attack reviews under false names months before he ever heard our loudspeakers. - JM)

Wishing you the best...I am in business too and my heart aches for you over this...

[prodj101]

a long, but interesting read. did anyone ever see that propeganda that was in stereophile awhile back where some group of poeple bought ad space and used it to bash a company (sorry, I forgot the details of it, but it was really odd)?

[AnalOg]

I had a pair, they suck!

Sincerely,

Bob Smith