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Lawsuit
Harry Rosenbloom, founder of the (now-closed) Medley Music of Bryn Mawr, Pennsylvania, was manufacturing handmade guitars under the name "Elger." By 1965 Rosenbloom had decided to stop manufacturing guitars and chose to become the exclusive North American distributor for Ibanez guitars. In September 1972 Hoshino began a partnership with Elger Guitars to import guitars from Japan. In September 1981, Elger was renamed "Hoshino U.S.A.", retaining the company headquarters in Bensalem, Pennsylvania as a distribution and quality-control center.
On June 28, 1977, in the Philadelphia Federal District Court, a lawsuit was filed by the Norlin Corporation, the parent company of Gibson Guitars against Elger/Hoshino U.S.A.'s use of the Gibson headstock design. Hoshino settled out of court in early 1978 and the case was officially closed on February 2, 1978.[7]
After the lawsuit Hoshino Gakki abandoned the strategy of copying "classic" U.S.A. electric guitar designs—having already introduced a plethora of original designs. Hoshino was producing Artist models of their own design from 1974, introducing a set neck model in 1975. In 1977 they upgraded and extended their Artist range and introduced a number of other top quality original designs made to match or surpass famous American brands; the Performer and short-lived Concert ranges which competed with the Les Paul; through neck Musicians; Studios in fixed and through neck construction; the radically shaped Iceman and the Roadster which morphed into the Roadstar range, precursor to the popular superstrat era in the mid-1980s. The newer Ibanez models began incorporating more modern elements into their design such as radical body shapes, slimmer necks, 2-octave fingerboards, slim pointed headstocks, higher-output electronics, humbucker/single-coil/humbucker (H/S/H) pickup configurations, locking tremolo bridges and different finishes.