I found this article on www.instapundit.com.  It tells what lawyers are
doing that can hurt small model makers.

Don Stackhouse already found out first hand what the impact of these
"shakedown lawsuits) are all about but I thought you all might want to read
this.  Here it is:


"Lawyers Lay Waste to Military Models Industry
by James Dunnigan
February 3, 2005
Discussion Board on this DLS topic

For over half a century, kits have been sold that enable military history
buffs to assemble scale models of military ships, aircraft and vehicles. But
that era is coming to an end, as the manufacturers of the original
equipment, especially aircraft, are demanding high royalties (up to $40 per
kit) from the kit makers. Since most of these kits sell in small quantities
(10-20,000) and are priced at $15-30 (for plastic kits, wooden ones are
about twice as much), tacking on the royalty just prices the kit out of the
market. Popular land vehicles, which would sell a lot of kits, are missing
as well. The new U.S. Army Stryker armored vehicles are not available
because of royalty requirements. Even World War II aircraft kits are being
hit with royalty demands.

These royalty demands grew out of the idea that corporations should maximize
"intellectual property" income. Models of a companys products are considered
the intellectual property of the owner of a vehicle design. Some
intellectual property lawyers have pointed out that many of these demands
are on weak legal ground, but the kit manufacturers are often small
companies that cannot afford years of litigation to settle this contention.
In the past, the model kits were considered free advertising, and good
public relations, by the defense firms. The kit manufacturers comprise a
small industry, and the aircraft manufacturers will probably not even notice
if they put many of the model vendors out of business. Some model companies
will survive by only selling models of older (like World War I), or
otherwise "no royalty" items (Nazi German aircraft) and ships. But the
aircraft were always the bulk of sales, and their loss will cripple many of
the kit makers. Some of the vehicle manufacturers have noted the problem,
and have lowered their demands to a more reasonable level (a few percent of
the wholesale price of the kits)."

I guess model kit makers will have to rename their models to avoid these
bottom feeding lawyers.

Ed




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