“intellectual property”.


I had wondered why I saw something about Union Pacific "brands" in an ad in the MR I just got.
 
Wonder if they got this idea after all the Lego BNSF sets, that WERE licensed? It's all inevitable, after all it IS their trademark. No complaints, since UP has eased up on their process...
 
Those terms are really egregious. $1,000 up front and 5% of sales as a royalty? It's bad enough for the big model makers but you can expect to see BNSF, and presumably the predecessor companies, whose trademarks they also own, to disappear from the decal market. There just won't be any profit in making them. Railroads seem to be the only compaines with this midset. Airlines don't demand a royalty for model aircraft kits and I think NASCAR only demands a disclaimer that the trademarkes are owned by them and their respective companies. As UP found out, they made no money and nothing but enemies. I think the BNSF will find out the same thing.
 
UP2CSX said:
...and I think NASCAR only demands a disclaimer that the trademarkes are owned by them and their respective companies...
Click to expand...

Actually NASCAR is one of the worst out there. Things are always more expensive with that rainbow stamp. This was proven recently - there has been significant demand from modellers for the new "car of tomorrow" as Revell is the only one making stock car models (besides small resin companies). Now this comes up on their website:

To Our Loyal Customers:

Over the years we have been pleased to provide you with the finest NASCAR plastic model kits featuring the most popular drivers. Regrettably however, over the last several years we have faced increasing licensing costs that are greater than our increase in sales. Despite our best efforts to secure reasonable licensing terms for NASCAR model kits in general, and the Car of Tomorrow in particular, we have been unable to develop a program that allows us to market the product at a viable price point. Consequently, we will not be issuing a kit on the Car of Tomorrow and, in fact, will be exiting the NASCAR business altogether. We will discontinue all sales of NASCAR plastic kits by February 28, 2009.

This has been an extremely difficult decision to make as we are fully aware of the avid fan base of NASCAR model kit builders and truly appreciate your support over the years. We trust you will find other model kits in our line that will be of interest and that will provide you with the model building enjoyment you desire.
​

Man, they have shot themselves in the foot. Yeah, the die cast market has swallowed the plastic kit segment (along with the creative outlet of kids, but I digress), and that is partially to blame for this decision by Revell. But NASCAR kits are always 5-7 bucks more to buy due to the licencing costs.
 
CanuckMark said:
Actually NASCAR is one of the worst out there. Things are always more expensive with that rainbow stamp. This was proven recently - there has been significant demand from modellers for the new "car of tomorrow" as Revell is the only one making stock car models (besides small resin companies). Now this comes up on their website:

To Our Loyal Customers:

Over the years we have been pleased to provide you with the finest NASCAR plastic model kits featuring the most popular drivers. Regrettably however, over the last several years we have faced increasing licensing costs that are greater than our increase in sales. Despite our best efforts to secure reasonable licensing terms for NASCAR model kits in general, and the Car of Tomorrow in particular, we have been unable to develop a program that allows us to market the product at a viable price point. Consequently, we will not be issuing a kit on the Car of Tomorrow and, in fact, will be exiting the NASCAR business altogether. We will discontinue all sales of NASCAR plastic kits by February 28, 2009.

This has been an extremely difficult decision to make as we are fully aware of the avid fan base of NASCAR model kit builders and truly appreciate your support over the years. We trust you will find other model kits in our line that will be of interest and that will provide you with the model building enjoyment you desire.
​

Man, they have shot themselves in the foot. Yeah, the die cast market has swallowed the plastic kit segment (along with the creative outlet of kids, but I digress), and that is partially to blame for this decision by Revell. But NASCAR kits are always 5-7 bucks more to buy due to the licencing costs.
Click to expand...
Tell me about it. There Models aren't cheap. Ouchy.
 
Actually the $1000 figure with the 5% royalty is pretty average across the industry. in the music biz some royalties are much higher----with the musician getting a teeennsie amount of it----
 
This discussion comes up every time a railroad decides it wants to protect it's copyright to it's name. It's happened with UP and a bunch of others already. This is just the latest.
 
Nascrap is very greedy and its starting to show. they want the whole cake and eat it too. Alot of Plastic model companys have battled this issue for years. Years past it was an great thing to have someone that wanted to produce a model of a MFGs car. Now you have to beg to build the models and then the automaker sets the rules with the plastic models production. They basicly get involved in a buisness they have no clue about. I think that a trademark name should have some sort of royalty but only to a point. In some cases It does not even have to include money. I think its the laywers that only see $ that ruin it for us. When I worked at a hobby shop 15 years ago I recall a few Mack Truck models that were going to be produced and later stoped before production as agreements could not be made. Then again you have to be smart with what you build and try to keep a good relationship. I remember AMTs failure.. AMT built a Model called the "junk yard dog" it was a Mack R model that looked like it belonged in a scrap yard. it was molded to have Dents, flat tires etc... mack did not like this and I think pulled the plug for a wile. I hope that the RR companys see that this is a hobby and not a sport!

Trent
 
I didn't realize NASCAR had become so greedy although I guess I should have expected it. Jeffrey, this is not about a copyright, it's protecting a trademark. Unless the BNSF thinks tiny engines pulling tiny trains will be construed as a real BNSF engine pulling a real train, that point is moot. The test is always whether a consumer of the goods or services will be confused as to the identity of the source or origin. I doubt anyone will think that BNSF is producing model trains. They are charging a royalty and licensing fee because the law allows it, not because there is any chance that the use of the trademark on an entirely dissimilar product will confuse a customer. It's a dumb practice put forward by the legal department with no understanding of the business and public relations consequences of their actions.
 
Plus NASCAR has plateaued, and arguably has been on the downturn for the past few years. Messing with licencing on these products is counterproductive - greed is telling them to charge more royalties, but less companies are taking the bait and less comsumers are buying in.

As for the BNSF issue, don't they have bigger fish to fry than going after the model railroad industry? As others have said here, it just doesn't seem to be worth to trouble.

Mark
 
It is all about "Marking Behaviour"---there are guys in these companies who are still having very strong bio-territorial circuits in their brain, hence the going after anything that moves in their turf.
 
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