In 1992, two C-Suite executives from US airlines took to the ring to wrestle out a dispute about trade marks. More than a quarter of a century later, what can companies learn from this?
3 key lessons
The first lesson is about deciding a strategy. This wasn’t really about the trademark. This was a ploy by the chair of Stevens Aviation to get better known, by challenging the well-known and well-connected CEO of Southwest Airlines (Herb Kelleher). It wasn’t ever going to be a win-lose option because of the huge publicity from the event. Stevens Aviation went from being a ‘little-known aviation sales and maintenance company to a business-cult sensation’ (source). One-sided contracts can trash your brand, on the other hand…
Great contracts can build your reputation
The second lesson is about collaboration. The chair of Stevens said ‘You make a lot more money off your friends than you do off your enemies… We made a friend in Southwest Airlines and, in doing so, we benefited from the very positive way they were perceived in the market.’ Always consider how you can both benefit from the contract, the project or the process. As well as being nice to read, understand and use…
Balanced terms are better for business
The third lesson is about considering dispute scenarios when writing your contracts. Disputes are frequent and inevitable in the long-term but how do you really want to resolve them? Arm-wrestling, dance-off, competitive baking? You could add a standard wedding cake clause (which sadly has nothing to do with a bake off) but if you want to be more amicable or to follow your values, be innovative. If you do want your dispute process to be enforced you will need clarity, but if it suits your brand, why not add some lightness into the less positive aspect of your contract?
Humour in contracts is not illegal
What should you do?
Think win-win with all aspects of contracting: from a strategy that meets your business goals, to collaborating with the right companies for you, to writing processes that will boost your relationships – especially when you’re at risk of falling out big time.
