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Two points to be made here. Point 1: UP is offering 2 options on licensing. Option 1 : 3% royalty on the wholesale price. A kit whose wholesale price is $10.00 would have to pay $.30. Typical retail price would increase from $20.00 to $20.30. OptIon 2 : Pay 1/2% of gross sales . Suggested if gross sales of UP products exceeds 20% of gross sales. Point 2: Lionel has came out with a trainset tie in with the movie "The Polar Express." Do you think they are doing this without paying a royalty? Yeah right! Was in a hobby shop today and looked at what Lionel is charging. Don't think they will go broke based on the licensing fee. If you can't afford Lionel equipment prices, then you don't have to worry about the licensing fee. Don't pity poor Lionel.
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