General Asylum

Posted by Hiroyasu Kondo on January 20, 2000 at 15:59:26:

Dear friends of Audio Note

Many of you will know that my former distributor, Audio Note UK, a company controlled by Peter Qvortrup and I have ceased to have a business relationship. I have recently read on the Audio Note UK web site Peter Qvortrup's explanation for this separation. The distortion of the truth is so great that Peter Qvortrup has forced me to go public and explain to you what happen.

As many of you will know I resigned from CBS Sony where I was an audio designer in mid-1970. At this time, I began using the name Audio Note, and my products were branded with that name. I actually incorporated Audio Note in Japan on October 1, 1979. I was manufacturing high end audio products a long time before I even met Peter Qvortrup. In fact, I had a number of agents prior to Peter Qvortrup being appointed my distributor. He proved himself to be a good salesman of my product and eventually I gave him the right to distribute Audio Note products everywhere except Japan. At no time has he ever been involved in the design, or manufacture, of my products. He is not an amplifier designer.

Everything went well for a period of time and he purchased goods through my Japanese business agent, Shibazaki san of Sibatech. Peter Qvortrup asked me if he might have permission to manufacturer a lower end audio product bearing the Audio Note name, I gave him a revocable license to do so.

In 1996 and 1997 problems started to develop, leading me in late 1997 to revoke the license to manufacture products bearing the Audio Note name, and to dismiss him as my distributor.

Peter Qvortrup has claimed on his web site that we parted company because of some ""severe philosophical divergence on amplifier design", this is not the truth.

I terminated my business agreement with Peter Qvortrup and Audio Note UK for three main reasons:

1. Towards the end of our business relationship he had ordered a large quantity of high end Audio Note products manufactured by Audio Note Japan through Sibatec but failed to pay for them.

2. In August 1997 Messrs Pannel Kerr and Forster accountants, were appointed join administrative receivers in the United Kingdom because Audio Note UK were put into the hands of the Official Receivers and into liquidation. The liquidation of Audio Note UK had a bad effect both financially and in terms of the reputation of the name Audio Note and I found it unacceptable.

3. Peter Qvortrup has always used the reputation for reliability and excellence to enhance the sale of the Audio Note products made in England under a license granted by me. However, I started to become concerned when I repeatedly heard complaints from people who had bought the English manufactured products telling me that it was badly finished and unreliable. I recognize that while our reputation could help sell the English products, equally their bad reputation could damage the reputation of the products I was building in Japan.

After I had terminated the agreement with him, I appointed P M Components, in England, as my distributor for Europe. I also granted them a revocable license to manufacture products bearing my name.

Peter Qvortrup's reaction was firstly to try and threaten people who wish to sell my products with legal action, claiming that the name Audio Note was his. Accordingly, I am a little surprise to see that he now claims on his web site to welcome healthy competition.

Moreover, he took legal proceedings in England claiming that the name Audio Note was his. I did not contest the proceedings because I did not believe that it was necessary to do so. It is so well known that I created the name Audio Note along with the names of individual products which bear Japanese names, such as ONGAKU, KEGON, KAGEKI. These products were designed by me, manufactured by me and the only role that Peter Qvortrup had was in for a time promoting and selling them. I could not believe that he would after I had ended our business relationship try and claim that he had a right to make products bearing my names.

Given the confusion that Peter Qvortrup has introduced into the market, I started to put the word "Kondo" on the front of products I now currently design and manufacture.

This does not mean that I cannot use the name Audio Note, why shouldn't I use the name Audio Note as I am the creator of it. Lately, I have been told that there have been malicious rumors spread about my health, I am very pleased to say that I am fit and well and working hard in Tokyo pursuing my life long quest for audio excellence and with no time, or desire or need to copy anyone else's design.

Thank you so much for your interest in Audio Note and for your faithful support over the years.

Please keep an eye out for my new web pages, it will detail all facts.