Lawyers Lay Waste to Military Models Industry

[Moggy]

Lawyers Lay Waste to Military Models Industry
by James Dunnigan
February 3, 2005

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).

StrategyPage report

[Shreck]

Ah yes, the continued descent into litigation borne madness....It has taken the model industry down a big "notch",it has damaged the simming industry,and at the present pace and direction its just a matter of time(as revenues continue to decline)before the legal vultures turn their money hungry attention towards the freeware crowd(that would be us!)as we are violating their intellectual property rights as well,even though we charge NOTHING for our promotion of their "artifacts".
Sad part is,all of this,was foretold many,many years ago and folks are just now beginning to see the fruits of that warning....

first thing we do...is kill all the lawyers....(I dont recall where that quote is from,but it is raher apt)
Shreck

[Wudpecker]

The U.S. has more lawyers per square foot (or per capita) than any nation in the world.
Not since ancient Athens has litigation fever boiled over like this.

I have read a majority in Congress (and most state legislatures) are lawyers. Like ex-Pres Bill Clinton "I did not have sex with that woman" (legally correct). Naturally every organization is run for the benefit of those who run the organization.

Yet it is Congress that will have to do a legal review of this nutty situation. The legal system is no longer fair to the small person or small business owner--if it ever was. As Shreck said, the small guy can't afford to fight the big boys.

Congress won't do a thing unless it profits them, or there is strong public support for a change (getting re-elected is always first on the agenda). It was ever thus. The people have the power, but they have to use it or be ignored.

If a compromise between creative "borrowing" of designs for uses like models and between the corporate profit drive is not found, it will squelch much of our lead in creating new uses for old things and making new ones.

This is a busy, competitive world. In places like China where "intellectual property" is largely ignored (and where the most fruitful new business is happening), this means they will have a leg up.

I feel another recession coming on soon. Maybe a depression. And well-deserved by all involved.