News: $40.7 award to MTH

[IRONROOSTER]

From the article
"MTH in 2000 accused Lionel and its South Korean manufacturing partner of using drawings that were stolen in South Korea to produce locomotives. The drawings, actually computer files, were for mechanical and electrical subassemblies."
It's not the loco as a whole, it's these subassemblies. They can make the loco, they just have to develop their own subassemblies that are different from MTH.

The other question is: How badly is Lionel hurt by this award?
Enjoy
Paul

[Kooljock1]

So let me get this straight...LIONEL hires Mike Wolf.

Mike Wolf WHILE A LIONEL EMPLOYEE runs a project to re-produce the Pre-War LIONEL Hiawatha through Samhongsa.

LIONEL has now been banned by the court from producing a train set they themselves originally designed, and then paid Wolf and Samhongsa to copy in the early 90's.

It just doesn't make sense.

LIONEL has now been banned by the court from producing a train set that has been an almost synonomous symbol of LIONEL trains since the early 1930's: The Blue Comet in tinplate.

Again, LIONEL hired Mike Wolf. Mike Wolf as a LIONEL EMPLOYEE contracted with Samhongsa to produce this set FOR LIONEL.

It just doesn't make sense.

The LionMaster Challengers are on the list. Can anyone with any knowlege of the hobby compare these to their MTH brethren?

The JLC Challenger is on the list. Has anyone other than perhaps Sunset/3rd Rail produced an engine even close to this?

I can understand some of the other offerings on the list, but these stand out as real problems for me. I know, I know...MTH claims that it might not be the designs themselves, but rather the "production schedules" that matter. And I can understand that argument. But only in the case of those engines that were shipped close to the MTH schedule. How does the "Empire State Express", with a FIVE YEAR WAIT fit in with that?

I guess there are many legal "issues" I'm just too dense to understand. I just hope that this whole mess can settle down with the major players healthy and all earning a decent profit.

Jon [8D]

[prewardude]

Unbelievable. I can see them being banned from making the modern trains, but the prewar stuff? Jesus...

And that brings to mind another question in all of this: How is it that Lionel can continue to make "Ives" O27 track clips, but MTH is making standard gauge repros with the Ives TM on them? Who actually owns the Ives name now?

This is one heck of a mess.

[Anonymous]

Wow, that will shoot up collector's prices for those locos!

[daan]

If the items listed are actually the ones which Lionel must stop producing it is not only the 40.7 mil which they suffer.. They can start all over again on half their catalogue..

[nblum]

One has to marvel at the common sense of a judge and jury that affirmed a verdict that MTH's plans for the 392E were a trade secret that belonged to MTH. These people are either incredible dummies or MTH's lawyers are incredible wizards at distorting reality. The American legal system at its finest, make no mistake.

[Kelly Shaw]

A federal court judge has affirmed a $40.7 million award to MTH Electric Trains. Read about it here.

http://www.trains.com/Content/Dynamic/Articles/000/000/005/517vkoih.asp