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Plastic Aircraft Model Kits are Going Away
StrategyPage ^ | 1/31/05

Posted on 01/31/2005 7:41:53 AM PST by pabianice

January 31, 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.

This move 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. 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.


TOPICS: Business/Economy; Culture/Society; News/Current Events; Philosophy
KEYWORDS: dumbideas; hobbies; toys
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To: Willie Green

Sounds like a good idea to me.


201 posted on 01/31/2005 2:35:30 PM PST by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink.)
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To: Husker24; Myrddin
you must have spent some time working in production for a large corporation too.

What the hey? You fellas must really have been the redheaded step-kids. Weren't you ever honored by being herded a thousand at time into a non-airconditioned space to stand on a concrete floor for an hour while the regional sales VPs were introduced?

I'll be forever indebted to those guys for the way they singlehandedly kept my job afloat for all those years.

< sniff >

202 posted on 01/31/2005 2:46:18 PM PST by LTCJ
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To: pabianice

bump


203 posted on 01/31/2005 2:46:49 PM PST by tutstar ( <{{--->< http://ripe4change.4-all.org Violations of Florida Statutes ongoing!)
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To: fso301
I just don't see the big aerospace and defence companies wanting to take this all the way to jury since they have so much to loose in the event kit-makers/game-makers/others pool legal resources in a joint defense or, that some third party financing be provided to the kitmakers for purposes of their legal defence.

Or that they get the tendentious PR they so richly deserve.

A good case in point is Major League Baseball -- who once sued Little League Baseball and affiliated municipal associations for using "their" names and colors without a license (or adequate compensation).

That PR gaffe was settled out of court. As I recall, Little League Baseball agreed to purchase a "token" license (for around $50K annually), while MLB agreed to commit support to Little League on the order of about $250K annually (in kind and cash).

Previously, MLB had been giving around $200K annually to Little League as a PR vehicle -- so the arrangement essentially codified the status quo.

But what made it all work was the bad PR major league baseball deservedly got when their suit was revealed.

204 posted on 01/31/2005 5:45:55 PM PST by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: orionblamblam

OK, now you're just scarin' me....!


205 posted on 01/31/2005 6:01:52 PM PST by Mike-o-Matic
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To: -YYZ-

actually its pretty fun, like a fine woman.


206 posted on 01/31/2005 7:00:45 PM PST by longtermmemmory (VOTE!)
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To: OldSmaj

The way they do it is to throw the in sync cylinders out of sync. The other is playing with the pipes but sound does not equal power.

When all is said and done, whether we ride harleys or they ride jap bikes, the most important thing is to ride and keep the rubber side down.


207 posted on 01/31/2005 7:05:17 PM PST by longtermmemmory (VOTE!)
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To: pabianice
My all-time favorite:

More examples here.

208 posted on 01/31/2005 7:05:32 PM PST by P.O.E. (FReeping - even better than flossing.)
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To: TexanByBirth
..First off, you can't find any military models at stores anymore...

Really? What a surprise- most of the models from when I was a kid, especially planes, were military models. Nobody had a problem with that. I haven't really looked at models for a long time- my brothers had plenty of them when we were growing up and I'd imagined being able to buy the same kinds today for their grandsons. Guess not. Sad.

209 posted on 01/31/2005 7:21:56 PM PST by mafree
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To: mafree

Go into a decent hobby shop and you'll find military models galore. But go into Wal Mart or some such,a nd if you're lucky enough to find models at all, they're probably cars. And likely pre-painted and mostly assembled.


210 posted on 01/31/2005 8:57:25 PM PST by orionblamblam
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To: Mike-o-Matic

Welcome to the world the likes of Protagonas have brought us.


211 posted on 01/31/2005 8:58:37 PM PST by orionblamblam
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To: pabianice

The god of the world is the greenback dollar.


212 posted on 01/31/2005 9:08:01 PM PST by philetus (What goes around comes around)
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To: Protagoras; hchutch
My take on this issue is pretty simple: defense contractors are endangering their long-term financial health in order to gain a few hundred thousand dollars (at most) in "royalties."

The issue is simple: these companies have used the public domain nature of their work as their primary defense against lawsuits for damage caused by their products. I can think of several notorious issues off the top of my head:

In each of these cases, the courts agreed with the contractor's arguments that the product was built for the military, to the military's specifications, and that the proper defendant was the military. This saved the contractors billions of dollars of liability.

Now, they're VOLUNTARILY casting aside that defense. It will be cited in any future cases as "admission against interest," and open the door to any number of lawsuits when someone's house winds up stopping (or at least slowing down) a military aircraft.

213 posted on 02/01/2005 5:18:04 AM PST by Poohbah (God must love fools. He makes so many of them...)
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To: Charlespg
.


Well, for starters, "WE" paid for the damn things with our tax dollars ...

All of this "Intellectutal Property" nonsense is driven by greedly CEOs who can't figure-out how to actually "grow" their business ...


.
214 posted on 02/01/2005 5:24:28 AM PST by Patton@Bastogne
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To: Poohbah

Your points are well taken. (I never took a different view in any post)


215 posted on 02/01/2005 6:16:04 AM PST by Protagoras (No one is fit to be a master and no one deserves to be a slave. GWB 1-20-05)
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To: Husker24
I couldnt have said it better myself, you must have spent some time working in production for a large corporation too.

I was the architect and lead software engineer at an internet startup company. When the execs took the company public, the software engineering staff was forced into working 7 days a week, 14 hour days to deliver on commitments delivered in a press conference. The marketing weenies made claims without checking with the development staff first. Failure to meet the commitments meant the stock price would tank. We meet the commitments. I paid the price with carpal tunnel syndrome that was so bad that I could not open doors, hold a glass of water or shift my car.

I made a decision to walk away from 38,000 options priced at 38 cents. It wasn't worth being disabled for life. A year after I left, the stock price peaked at $26/share. All those options would have been eligible for exercise. I could have had a gain of $973,560 before taxes. Instead, I returned to my current employer and managed my stock carefully. I've still had lots of 70-80 hour WEEKS, but isn't non-stop to the point of injury.

Of late, I've spent lots of time reading financial books by Dave Ramsey, Robert Kiyosaki and David Bach. Following their advice has me on track to being debt free with good investments yielding passive income for the future when I can't pound out 60 to 80 hour weeks on demand.

216 posted on 02/03/2005 9:54:07 AM PST by Myrddin
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To: LTCJ
What the hey? You fellas must really have been the redheaded step-kids. Weren't you ever honored by being herded a thousand at time into a non-airconditioned space to stand on a concrete floor for an hour while the regional sales VPs were introduced?

Many times. Fortunately, I haven't been accosted that way since leaving the employ of PacBell in 1991. I remember a crusty old manager assigned to take over a group of IBM system programmers. His most memorable quote, "You guys give a whole new meaning to taking a dump".

217 posted on 02/03/2005 10:02:10 AM PST by Myrddin
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To: Myrddin
Indeed. BTW, you really pegged the scavenger call.

PacBell Of Dilbert fame, IIRC?

One of my favorite real-life Dilbertesque stories was when the yearly attaboys devolved into cheap sweaters embroidered with the company name on the breast. Someone guaranteed that wouldn't happen again by taking up a collection of hundred or so from the plebeians and delivering them to a local homeless shelter. That resulted in months of somehow unappreciated street-level advertising.

218 posted on 02/03/2005 10:34:09 AM PST by LTCJ
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To: LTCJ
Yes, I was at PacBell when the events that inspired the Dilbert series were transpiring. I read those books and can usually put a name to the person being parodied.

I was also recruited in the "coding wars" that inspired the book "Peopleware". It is fun to read a book insired by something that was part of your daily life at work.

219 posted on 02/03/2005 10:50:16 AM PST by Myrddin
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To: pabianice
About 20 years ago when I started to produce limited injected kits as "12 Squared", I wrote to Boeing to obtain drawings of the new hi-by-pass engine cowling used on the B373. I received a letter from their lawyers asking what I required them for. After about six exchanges of correspondence they sent me a very detailed set of drawings of the new model of B373 with the stipulation that I could not use the words "Boeing" or "B-737" in the marketing of the kit. At that time they did not ask for a fee, but I'm sure my request helped speed along their decision to make money off the 'little guy'.
I went to the EAA fly-in at Oshkosh, WI, shortly after the Voyager did its around the world flight. I had done up a 1/144 resin copy of the Voyager with plans to do it in plastic. I stood in front of Burt Rutans booth twirling it between my fingers. He couldn't take his eyes off of it as a gentleman from France lauded him with praise about his Vari-EZ. Finally we got to talk and he said it was a good representation but the pods were two fat. He never did drawings of the Voyager, the only sketches being on the floor in chalk. The royalties for kits for the Voyager had been given to Gena Yeager as part of her share of the spoils from her split with Dick Rutan. I chased her down at the other end of the flight line where she told me that her recently fired business manager had lumped the kit royalties into the rights for a movie and that it had been sold to a studio. Hence you will not see a kit produced in the US. Fortunately A-Model from Russia or where-ever produced a kit in 1/72. I still work on masters and hope to get back into making kits again. So I was working up a Pegasus and wrote Orbital Science. There I was flat out told that they have their own 'model manufacturer' (I assume for the desk top models to sit around the exec's desks) and that they had no intentions of granting anyone else the right to produce their products in model form. So be glad there are Asian and East European companies kicking out those one off kits. When Boeing gained the rights to McDonnell - Douglas - and North American I heard from an engineer friend at Boeing that their legal department was going after US Customs to crack down on all the die cast kits coming into the country that were P-51's, F4's etc because they had not signed a legal agreement with Boeing the new owner of those 'proprietary designs'. They just don't realize how many aviation careers where launched by some kid building his first plastic model of a fighter from some era that fascinates him. Let alone the free advertising of ones products and hopefully the aspirations of that kid to one day fly a "Boeing" aircraft or fly into space.
220 posted on 02/12/2005 7:16:08 AM PST by rck12sq
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