UP overcharging for their name.

[Anonymous]

I think that UP is over-charging just for the UP name on models.

[AntonioFP45]

O.K, I can live with the "trademark" royalty, but $5! That's worse than the mouse! (Disney)

I still want future UP units but I'll look for them at train shows first as I've seen plenty of discounted HO UP locomotives at GATS as well as a local show. If you're a UP fan, don't be discouraged or hate the railroad. Executives come and go and today, they "seem to be" a dime a dozen as many white collar professionals are losing their positions or retiring early. (No offense intended to any execs on the Forum).

[espeefoamer]

TO: UP. FROM: Donald Trump. "Your'e Fired! "[:(!]

[Anonymous]

I hate UP and their copyright. End of story

[Anonymous]

Its just stupid. Yeah they should charge something but $5!

[Anonymous]

I can see them charging for the use of their logos like Harley-Davidson, Coca-Cola, etc. but the price seems a little ridiculous. All it sounds like they're doing is alienating UP modelers like myself. Looks like I'll be searching for new old stock or excellent used UP equipment.

[Fergmiester]

If the 5$ is legit and if you were talking $5/$100 then I would say I could live with that, after all it's there trademark, But if it's a $5 flat rate and it is being levied on a $10 item, well then UP can find a beach and pound sand!

[CP5415]

From what I'm seeing, everything that has been produced in this past year with the UPRR trademark is $5 more than the same item with different RR's on them.
It's UP's wi***o make money off of their logo. There's nothing we can do about it.
Another thing I think about too is, how much is it going to cost ME/YOU in materials & time to make the decals & apply them?

Gordon

[AggroJones]

Sure they have a right to control what their name goes on, but why charge so much? $5 is terribly steep.

If anything, the price addition should be like 1% of MSRP or somthing.

[wp8thsub]

UP isn't charging a flat $5.00 fee, it's a percentage. According to one manufacturer who posts regularly elsewhere on the net, the royalties are amounting to only a few cents at most on his decals that sell for a few dollars a set. Any attempt by a manufacturer to hike prices for UP models over the actual royalties may just be profiteering at a time when it's easy to just blame UP when somebody complains.

If we're going to refuse to buy UP products based on their licensing fees, we had best stop buying the likes of CSX and BNSFmodels, due to licensing policies they're pursuing. For that matter, we should also stop buying models of Ford or Chevrolet autos for the layout, not to mention John Deere tractors, Coca Cola billboards and host of other products. Better not buy any T-shirts with sports team logos or cartoon characters to wear when we're not railroading either. The prices we pay for many model products have included the necessary licensing fees for years, although the associated agreements may not involve the same fee structure as UP. We're used to the fact that the fees are built into prices and haven't recognized them as such.

UP has not handled their licensing issue particularly well, considering just how forceful they've been in showing it down the hobby industry's throat. Go ahead and hate UP's lawyers (they aren't my buddies either), but their counterparts with other prototype railroads are right behind them with more agreements and fees.

[Anonymous]

I'm boycotting UP

DOGGY

[Big_Boy_4005]

I think that they should do what all of the other railroads are doing, namely, nothing. Ive heard their side and think it's a crock. I have been looking for evidence of this alledged surcharge at hobby stores recently, and have found nothing.

I would love to hear from anyone who has witnessed the UP TAX, and specificly where they purchased the item(s). Perhaps it is necessary to shop more carefully to avoid being ripped off by unscrupulous and opportinistic dealers.

[brothaslide]

Geraldo Rivera should do an undercover investigation about this whole situation.

Can't you just see the episode - Geraldo pretends to be a lawyer for Athearn; while meeting with UP lawyers, he secretly records the whole meeting with a hidden video camera in his brief case. That would be about as much fun as watching C-Span.

[Anonymous]

I didn't vote because the right answer isn't one of the choices. Where did you ever come up with the $5 figure? It's obvious that you haven't even bothered to read their licensing agreement - it's on their web site.

[Anonymous]

I want to buy UP locos and cars but i barely have the money for good CNW locos. i only have 1 UP thing and its a covered hopper.

[Anonymous]

I don't really care what UP does. So it's 5 or 10 dollars, big deal. Didn't increase the price on my UP locos.

[Anonymous]

For someone just getting into the hobby, its sad to think that I'll have to pay more for just a name. I already have 2 UP ho scale loco's, And glad i received them as gifts as a kid. I also have a old SF HO loco that my uncle gave me. I guess my point being , for newcomers it might steer them to a different RR name. For me I'll use my UP locos on my layout.[ When i get the room ] but my layout is gonna be freelance, not following any name or stretch of line, except in my own mine.

[AggroJones]

QUOTE: Originally posted by 4884bigboy

I don't really care what UP does. Didn't increase the price on my UP locos.

Indeed. Most of the UP "classic age" stuff out now has escaped the price additions. The prices are normal on Proto E units, BLI E units, Proto's PA, Lionel Veranda, Lionel 4-6-6-4, and BLI MT-73.

Think of it this way, at least they didn't make the price increase 20%. [:0]

[Anonymous]

I won't buy anymore UP. I didn't before why start now that they're charging me more for the privlige of have one. I think not.

[EL PARRo]

I think that U.P. has the right to charge a royalty for use of their logo, and five bucks might be fine for a $100+ locomotive, but not for something like a $10 piece of rolling stock. That's just ludacris.

[Anonymous]

QUOTE: Originally posted by JCtrain

Its just stupid. Yeah they should charge something but $5!

Ya like mabe 50c a logo. BNSFrailfan.

[Train 284]

QUOTE: Originally posted by espeefoamer

TO: UP. FROM: Donald Trump. "Your'e Fired! "[:(!]

GOOD ONE! [(-D][(-D]

You know, if it wase'nt for train guys like us, there would not be a UP!

Matt

[Anonymous]

You know, if it wase'nt for train guys like us, there would not be a UP!

Matt

[twhite]

I understand from a friend at my LHS that Kadee and Accurail both took on the Big Yellow Bird and put its ravenous talons to a screeching halt--at least temporarily. If UP wants to charge a licencing fee for THEIR OWN name, okay with me--I don't have (or need) that much UP freight equipment. HOWEVER (he said, getting on his [soapbox]), charging extra for names like WP, SP, D&RGW, MP and KATY) is pretty silly in my book. I mean these are Fallen Flags, for cryin' out loud, they've been eaten up and digested by UP, they DON'T EXIST ANY MORE--HELLO!
Tom (mutter, mutter)[:(!]

[Anonymous]

QUOTE: Originally posted by twhite

I understand from a friend at my LHS that Kadee and Accurail both took on the Big Yellow Bird and put its ravenous talons to a screeching halt--at least temporarily.

First I heard about this decision. I assume we will hear specifics about it?

I see BSNF Fan revived this thread almost on ithe exact one year anniversary to reply to the bogus claim that a $5.00 royalty is being charged on a ten dollar item. As a reminder, it's 3 percent of wholesale price. It might be 15 cents on that $10 retail item.

Wayne

[bcawthon]

Here's the link to access the actual information about UP licensing:

http://www.uprr.com/aboutup/licensing/index.shtml

And here's the real language covering royalties:

"In order to encourage model railroad hobbyists, Union Pacific has created two payment options for licensees in the model railroad industry. These options are available only for model railroad equipment sold primarily to hobbyists. Licensee applicants who produce Union Pacific-branded products sold primarily as toys must fill out the standard licensee application and are not eligible for these payment options. If you are not sure whether your product should be classified as a toy or a hobbyist item, please contact Union Pacific.

Option 1
A royalty of three percent is payable on any product bearing a modern, historic, or constituent logo licensed by Union Pacific. The licensee will pay an advance on royalties based on the wholesale price of the product(s) and estimated annual sales of UP-branded products.

Option 2
An annual fee of .5 percent (one half of one percent) of total licensee gross sales of all model railroad products will be paid to Union Pacific. Gross sales will be calculated on the most recent completed year of sales and will be based on an audited financial report. Licensee applicants with gross sales in excess of $1 million should contact Union Pacific for additional information.
Option 2 is based on the assumption that Union Pacific-branded merchandise comprises roughly 20 percent of average industry sales; licensee applicants whose Union Pacific-branded inventory comprises less than 20 percent may want to consider selecting Option 1."

So on a $100 item, the royalty would not even be $3.00, but 3 percent of the wholesale value, call it somewhere around $1.80.

So if you are really getting whacked an extra fiver for UP-branded rolling stock or motive power, don't blame UP for most of it.

By the way, the UP license application is a model of simplicity itself. I wish automotive licensing arrangements were this easy (or this cheap - figure a nice license fee PLUS royalties or 5 percent or more).

[davekelly]

I still think the way for say Athearn to do it would be to sell an undecorated yellow engine and include a Microscale decal set. That way you're just paying the royalty on the decal, not the entire engine. [(-D][(-D][(-D][(-D][(-D]

I know, just another laywer looking for a loophole lol.