If First Watt sales were not hurt and Tim Rawson was working alone and producing a small number of amplifiers at minimum wage, I fail to see where this is an issue at all.
If he had a factory with multiple units being churned out every hour by Chinese children for 60% of what Nelson charges and was advertising all over the internet, I could see where he should certainly be challenged in the press as well as in court.
Since the former appears to be the reality in this circumstance, we all need to scale back our indignation and let the poor guy Rawson have his fun. He likes to build these things. He experiments with mods and materials and he pays for his hobby by selling off his completed experiments at a modest profit. Do we really give a damn if he pockets $1000/month? Lots of parasites make a lot more than that by just buying and selling constantly on Audiogon. The produce nothing, contribute nothing, and drive up our cost for used gear. Turn your anger and resentment toward them. Tim is a real hobbyist.
