Chicago Tribune v. UP's Dilution War

[Anonymous]

On Sunday , the Chicago Tribune will be running a feature article on the UP action against Lionel. Go figure.

They said in the short teaser in Saturday's paper that train enthusiasts, I guess were part of that group, are mad at UP because UP is penalizing its fan base

Alan

[cnw1995]

I was surprised to see such an extensive teaser in the business section, complete with toy train tender emblazoned with Union Pacific. Should be an interesting article.

[Anonymous]

Here's the link to the Chicago Tribune article.

[spankybird]

After reading this, it sounds like Lionel and Athearn started the law suit first.[%-)]

QUOTE: from Chicago Tribune
Lionel, Athearn sued

In May, UP raised the ante when it filed a federal trademark-infringement suit against Lionel and another major scale-model manufacturer, Athearn Inc.

Maybe that’s why UP only filed suit against them [?]


tom

[Anonymous]

No
"Lionel, Athearn sued"

This was the headerline to the paragraph, it means that they WERE sued, not that they sued.


Alan

[spankybird]

OK, You are correct. I mis-read it,

Thanks
tom

[Anonymous]

I still think UP is correct in doing this. Lets make millions of toy trains and put a LIONEL LOGO on them and see how fast they sue you for doing so[8D]

[cnw1995]

Well, it was nice to see a layout in the paper - I think article implies nothing's going to change. UP will sue - everyone will eventually settle - and UP flags will be 3-5% more in price - like Kato has been doing for a while now in N scale.

[ben10ben]

What still bothers me, and something that the article touched on, is that they have been used for 50 years without UP saying so much as anything.

In fact, back in 1959, UP was yet unrepresented by an American Flyer passenger set. The folks at UP took the liberty of buying an American Flyer Santa Fe passenger set, and having it repainted to UP colors. After doing this, they sent it into A.C. Gilbert with the offer of paying all associated production costs to have the set produced.

One of the lawyers over on OGR seemed to think that if the letter survived, it would probably go a long way in Lionel's defense, especially since Lionel now owns American Flyer.

[Anonymous]

That UP waited to enforce its trademark rights is of no consequence when applied to its right that continues in perpetuity.

Unlike other legal claims where there are statues of limitation and an action can be barred by laches, intellectual property rights for trademarks go on and on and on.

A prior letter would only apply to that specific AF train that UP gave permission for and not others after or before the fact. (unless you are saying there is a letter giving Flyer unlimited rights to use the UP trademark) And if that letter does exist, it would only grant a license to AF trains and not universally apply to Lionel’s trains.

Alan

[Anonymous]

Who cares anymore, it's over ,get over it..............

[Anonymous]

BNSF

if this post is of no concern to you why bother yourself with it
if UP wins and despite your feelings that its "OVER" It hasn't started yet and won't be
"over" anytime soon

IF UP wins It will affect not only UP but also
Western Pacific, Texas Pacific, Chicago & Northwestern, MKT, St Louis Southwestern and Southern Pacific lines too

Next BNSF will do the same thing as well as a host of other lines.

To answer your statement that " who cares?" ; well sir I do.

Alan

[Anonymous]

QUOTE: Originally posted by AlanHN

BNSF

if this post is of no concern to you why bother yourself with it
if UP wins and despite your feelings that its "OVER" It hasn't started yet and won't be
"over" anytime soon

IF UP wins It will affect not only UP but also
Western Pacific, Texas Pacific, Chicago & Northwestern, MKT, St Louis Southwestern and Southern Pacific lines too

Next BNSF will do the same thing as well as a host of other lines.

To answer your statement that " who cares?" ; well sir I do.

Alan

As Alan and I have been saying all along, this topic does matter and WE do care what happens. I am fully in support of UP winning this, but not in support of how Lionel will not doubt "jack up" their prices needlessly if they lose.

[mpzpw3]

I like the idea that the manufacturers will raise the price on U.P. and Fallen Flags that they have aquired. Look in a train catalog and see say a Santa Fe F-3 AA for $700.00, and a U.P. F-3 AA for $750.00. Doubtful at best. Both engines will be $750.00, and we will live with it. I hope I am wrong, but again, doubtful at best.

[Anonymous]

Well the article says that UP is seeking 3% BUT that wont cover costs to collect it; so likely the royalty will go up to 10%; On a $700 engine expect to pay $770.00 for UP related roadnames; will the Santa Fe then cost only $700?

My Guess is that Lionel will spread the percent across the lines so the actual increase overall will be closer to 5%; ASSUMING of course UP prevails.

Alan

[3railguy]

Maybe the Union Pacific was watching the MTH lawsuit and thought two lawsuits would put Lionel on the block so they (Union pacific) can buy Lionel.

[Anonymous]

Anything's possible

But the Tribune article says that UP is worth tens of Billions why would they for one thing look to buy Lionel , it is simple too small potatoes for them and additionally seek what will amount to a million or so in annual royalties and wind up costing UP 2 to 3 million a year to monitor.

The UP lawsuit makes no financial sense for UP. A million means something to you and me but to UP it's chump change.

Alan

[Anonymous]

You can bet the farm that if a UP train item will cost more then Lionel will mark all of their stuff up the same way. It's a built in profit for them as well that way. Also once UP gets their way all the other companies will want a piece too so the price will go up again. Time to start buying undecorated models and lettering them yourself.