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Union Pacific have initiated legal action against Mikes Train House due to unlicensed use of their railroad insignia. Apparently their conditions of license are that they pay a royalty to and also advise UP of their business strategies for models with their logo including marketing budgets, manufacturing details, distribution channels and sales goals. The lawsuit has requested that MTH cease using the UP trademark and send all its UP branded products to UP to be destroyed and further reimburse then for lost revenue and damages.
I thought this would be worth discussion as, if it succeeds, it may have a significant impact on the hobby if other rail companies follow. While paying a royalty is fully understandable, can you see Hornby advising GNER or EWS of its business strategy or Marklin advising DB on its manufacturing details?
Bachmann make a range of Chinese locos. Would it be realistic for them to hand over their manufacturing and distribution details to the Chinese State rail company?
The result of that would be immediately apparent.
To the uninformed individual these conditions seem unrealistic and unacceptable to a model manufacturer. Obviously some manufacturers don't seem to think so as I understand that Lionel is the only other Model manufacturer who has been similarly sued by Union Pacific. Maybe someone better informed could shed some light on this.
My concern is that if all Rail companies world wide decided to implement such a strategy could this lead to the demise of specific railroad company railway modelling or that railway models are made minus the insignia which would then have to be added by the modeller at his own risk of legal action?
I thought this would be worth discussion as, if it succeeds, it may have a significant impact on the hobby if other rail companies follow. While paying a royalty is fully understandable, can you see Hornby advising GNER or EWS of its business strategy or Marklin advising DB on its manufacturing details?

Bachmann make a range of Chinese locos. Would it be realistic for them to hand over their manufacturing and distribution details to the Chinese State rail company?

To the uninformed individual these conditions seem unrealistic and unacceptable to a model manufacturer. Obviously some manufacturers don't seem to think so as I understand that Lionel is the only other Model manufacturer who has been similarly sued by Union Pacific. Maybe someone better informed could shed some light on this.
My concern is that if all Rail companies world wide decided to implement such a strategy could this lead to the demise of specific railroad company railway modelling or that railway models are made minus the insignia which would then have to be added by the modeller at his own risk of legal action?
