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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: orionblamblam
Find the nearest truck-stop bathroom stall and start publishing.

You seem to know just a tad too much about such places. Talk about trolling........

161 posted on 01/31/2005 12:28:47 PM 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: orionblamblam
If I market a globe, do I have to pay a royalty to the UN or France?

I can almost hear the adding machine over in the UN's Legal Dept.

162 posted on 01/31/2005 12:31:17 PM PST by skeeter (OBL "Americans" won't honor any law that interferes with their pocketbooks)
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To: Dr. Frank fan
Let's see, I'm no actuary, but seems to me that demanding X+Y royalties on 0 sales rather than X royalties on N sales will not help you "maximize intellectual property income" in the first place.

Brings a whole new meaning to the term "intellectual"

163 posted on 01/31/2005 12:31:53 PM PST by Last Visible Dog
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To: pabianice; hchutch
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.

Uh, last time I checked, these designs were owned by the United States government.

164 posted on 01/31/2005 12:32:29 PM PST by Poohbah (God must love fools. He makes so many of them...)
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To: skeeter

Isn't that where Protagoras works?


165 posted on 01/31/2005 12:33:10 PM PST by orionblamblam
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To: Poohbah

> these designs were owned by the United States government.

See Post 21 for a rather extensive list of designs that Boeing would argue with you about.


166 posted on 01/31/2005 12:34:30 PM PST by orionblamblam
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To: Protagoras

And that's the best you can do, huh? Sad.


167 posted on 01/31/2005 12:35:07 PM PST by orionblamblam
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To: pabianice

Very sad.

Just Damn.


168 posted on 01/31/2005 12:36:02 PM PST by roaddog727 (The marginal propensity to save is 1 minus the marginal propensity to consume.)
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To: R. Scott
I’ve noticed that few are available that are Made in America.

I think perhaps Congress should investigate to see what royalties are being demanded from offshore manufacturers. If significantly lower than what's being extorted from domestic suppliers, these idiots could be guilty of unlawful restraint of trade or some other anti-trust violation.

169 posted on 01/31/2005 12:36:38 PM PST by Willie Green (Go Pat Go!!!)
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To: fso301
Smells like a BS story to me. There are numerous defenses a kit maker could use to invalidate such a patent, copyright or trademark suddenly being asserted against them after decades of unchallenged royalty free use.

Not BS. The model kit companies can't afford the teams of lawyers the aerospace companies can. The litigation costs will crush the model kit manufacturers, even if they win. This is a major argument for loser-pays litigation.

170 posted on 01/31/2005 12:37:58 PM PST by Poohbah (God must love fools. He makes so many of them...)
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To: Poohbah

What a mess... well, at least foreign aircraft and stuff might be available.


171 posted on 01/31/2005 12:40:44 PM PST by hchutch (A pro-artificial turf, pro-designated hitter baseball fan.)
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To: skeeter

"Over the top. The Profit Takers will get around to screwing everybody, sooner or later."

You got that right! If it isn't the government trying to screw ya', it's some corporation!


172 posted on 01/31/2005 12:49:37 PM PST by JZelle
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To: Fred Hayek
Good Lord, the absurd extreme would be Newport News Shipbuilding or Electric Boat charging for royalties on any ship they built getting mentioned in the Harpoon Database.

Isn't this the tip of the iceberg? I mean, if we are going to contiue to treat information as property?

If an idea can be property, there's no end to the insanity that's possible. Suppose I make up a new name no one has ever used before. Can I then copyright it, so that anyone who wants to name a child that owes me?

Many other examples have been posted already.

"IP" has the potential to stifle a culture's creativity to a frightening degree . . .

173 posted on 01/31/2005 12:53:09 PM PST by Dominic Harr
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To: JZelle
You got that right! If it isn't the government trying to screw ya', it's some corporation!

Like individuals, some corporations do not recognize moral limits in their pursuit of the bottom line. And thats a bad thing (pun intended).

Whats surprising to me is there are those who disagree.

174 posted on 01/31/2005 12:55:33 PM PST by skeeter (OBL "Americans" won't honor any law that interferes with their pocketbooks)
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To: orionblamblam; hchutch
See Post 21 for a rather extensive list of designs that Boeing would argue with you about.

If they're claiming ownership, then they're also claiming responsibility for any damage inflicted due to defects in design. They've hidden behind the doctrine of "it ain't OUR product, it's the government's" for over 60 years.

175 posted on 01/31/2005 12:56:12 PM PST by Poohbah (God must love fools. He makes so many of them...)
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To: caseinpoint

Some good points. Thanks for the info.


176 posted on 01/31/2005 12:58:13 PM PST by TChris (Most people's capability for inference is severely overestimated)
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To: orionblamblam
Sweet Mother Magoo!!!!
That's a buttload of legalese!
177 posted on 01/31/2005 12:59:38 PM PST by Mike-o-Matic
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To: HolgerDansk
Guess I'll have to paint "Union Pathetic" on my next boxcar ;-)
178 posted on 01/31/2005 1:03:04 PM PST by Mike-o-Matic
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To: Pharmboy

Oops! Now you owe a royalty for posting that!


179 posted on 01/31/2005 1:03:52 PM PST by Mike-o-Matic
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To: Willie Green; hchutch
I think perhaps Congress should investigate to see what royalties are being demanded from offshore manufacturers.

They're demanding the same money from all players.

180 posted on 01/31/2005 1:05:15 PM PST by Poohbah (God must love fools. He makes so many of them...)
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