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Old 04-16-2006 | 09:32 PM
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Default New Shake Down for Mfgrs

Have a couple friends who actively manufacture and market several flying and static model aircraft. The A.M.A. sent them a note early this month warning of some shake down artists demanding royalties. Royalties based on decades old names and models. We all may remember the Lockheed senario, but now the businesses are getting hit from new directions.

One fellow got hit with three cease manufacturing letters this year alone. One letter indicated that the word Wasp for an engine was copyrighted by some unknown firm. Not by P&W either. When asked for proof of copyright holding and filing, the attorney only got madder and never answered the original question.

Apparently A.M.A. is now looking into this. Oh, and apparently the attorneys are not sending letters to any foreign based companies.

Have you heard of this or know someone who is affected?

Wm.
Old 04-16-2006 | 10:10 PM
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Default RE: New Shake Down for Mfgrs

here is a link to an article on that subject

http://www.modelaircraft.org/supportletter.asp
Old 04-16-2006 | 11:25 PM
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Default RE: New Shake Down for Mfgrs

[&o] ALONG VOICE IN THE WRONG DIRECTION. What we're really talking about is copyright and intellectual property. As an example, if you make a scaled down working model of a Ferrari F-1 race car which you then manufacture and sell, for a profit, you are using the intellectual property of Ferrari and as well as riding on there name and reputation. They have every reasonable expectation that you should pay royalties and that you not be allowed a free ride. After all your using their property for your own benefit and profit. So it appears to be with the manufactures of scale aircraft. Royalty agreements are common in the business world where it is recognized that there is no "free lunch".
Old 04-17-2006 | 12:55 AM
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Default RE: New Shake Down for Mfgrs

were not talking about commercially produced vehicles. this is geared toward WW2 fighters and modern jet fighters, actually stemmed over the FA-16 when Lockheed saw people are getting 20 grand for a model regardless of air frame being a small fraction of that. most of this kinda of intellectual property is owned by the government. So the companies like Lockheed are coming back with public designs and demanding royalties for them, now the modern equipment like the f-16 Lockheed still has the rights to, but planes like mustangs, sea Fury's and p-38, the old stuff are owned but government agencies. Were not copying the flight control systems and software packages which are pieces that are still privately owed. The government is pretty screwy but it not legal for them to demand royalties which they are not.
Old 04-17-2006 | 05:44 AM
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Default RE: New Shake Down for Mfgrs

most of this kinda of intellectual property is owned by the government.
The government does not stockpile copyrights and trademarks. The IP is and always has been owned by the respective manutacturer. The gov't hired the companies to do the job. Gov't doesn't design aircraft, they just buy it, like an airline.

The government is pretty screwy but it not legal for them to demand royalties which they are not.
Gov't charging royalties???
Old 04-17-2006 | 08:48 AM
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Default RE: New Shake Down for Mfgrs

As an example, if you make a scaled down working model of a Ferrari F-1 race car which you then manufacture and sell, for a profit, you are using the intellectual property of Ferrari and as well as riding on there name and reputation.
I think the same argument can be made of the model manufacturer, anyone can make a model just as Ferrari can make an F-1 car, but that model manufacturer has it's own intellectual property and reputation to be a success. To be the Ferrari of model makers is a right well deserved to anyone that works so hard to do so.
Old 04-17-2006 | 09:28 AM
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Default RE: New Shake Down for Mfgrs

it doesn't now. WW2 they did.


"goverment and royoties."

I was being sarcastic. ya it doesn't pass over well in type
Old 04-17-2006 | 01:35 PM
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Default RE: New Shake Down for Mfgrs

I've said this before but it might bear repeating. There is a board at DOD that chooses the names for new aircraft. The Mustang was named by the RAF. The Republic Thunderbolt II name was chosen by the DOD. The name Warthog was chosen by the ordinary men in the USAF because of the appearance of the beast. If you choose to use a design for a model and call it a Thunderbolt II go ahead. The general characteristics for the aircraft were for a certain performance. Republic met that criteria and someone at the Pentagon chose the name. The name is actually the property of the government.
Old 04-17-2006 | 02:31 PM
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Default RE: New Shake Down for Mfgrs

Stop over at the Jet forum. There's a discussion on this very subject.
Jon
Old 04-17-2006 | 04:03 PM
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Default RE: New Shake Down for Mfgrs


ORIGINAL: xe2

[&o] ALONG VOICE IN THE WRONG DIRECTION. What we're really talking about is copyright and intellectual property. As an example, if you make a scaled down working model of a Ferrari F-1 race car which you then manufacture and sell, for a profit, you are using the intellectual property of Ferrari and as well as riding on there name and reputation. They have every reasonable expectation that you should pay royalties and that you not be allowed a free ride. After all your using their property for your own benefit and profit. So it appears to be with the manufactures of scale aircraft. Royalty agreements are common in the business world where it is recognized that there is no "free lunch".
Perhaps that's true in the US, but there's certainly a "Free Lunch" (and a big one) for companies in some foreign countries that routinely ignore US royality & copyright laws.


Old 04-18-2006 | 07:53 AM
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Default RE: New Shake Down for Mfgrs

ORIGINAL: redfox435cat

were not talking about commercially produced vehicles. this is geared toward WW2 fighters and modern jet fighters, actually stemmed over the FA-18 hornet when Lockheed saw people are getting 20 grand for a model regardless of air frame being a small fraction of that. most of this kinda of intellectual property is owned by the government. So the companies like Lockheed are coming back with public designs and demanding royalties for them, now the modern equipment like the f-18 Lockheed still has the rights to, but planes like mustangs, sea Fury's and p-38, the old stuff are owned but government agencies. Were not copying the flight control systems and software packages which are pieces that are still privately owed. The government is pretty screwy but it not legal for them to demand royalties which they are not.

Did you just make your entire post up off the top of your head? Because NOT ONE WORD OF IT IS TRUE.
PLease document sources for these statements:
"actually stemmed over the FA-18 hornet when Lockheed saw people are getting 20 grand for a model"
"most of this kinda of intellectual property is owned by the government"
"Were not copying the flight control systems and software packages which are pieces that are still privately owed."

You know what the problem with the internet is? A good solid fifty percent, every other post, is complete, utter NONSENSE. People just like to hear themselves talk or something, they just make stuff up so they can sound like they have a clue.
Old 04-18-2006 | 09:11 AM
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Default RE: New Shake Down for Mfgrs

my bad it was the f-16
give me a day I'll refind the rest

Lockheed demands royalties payments for F-16 models



Publication Date: 11/28/99

DALLAS (AP) - Lockheed Martin doesn't want just anybody marketing toy models of its F-16.

So for the first time, the company is licensing the name and likeness of its Fort Worth-made fighter jet and other products.

And the Bethesda, Md.-based defense titan is demanding royalties from the toy companies authorized to make and sell the products, The Dallas Morning News reports in its Saturday editions.

"The company has a lot invested in the shape of the aircraft, and there are a lot of F-16s out there," said Eric Hehs, editor of Lockheed Martin's Code One magazine in Fort Worth. "Lots of products and quality products is what they're shooting for. We don't want shabby games or toys, because that could reflect on the company."

Toy manufacturers said Lockheed Martin's licensing restrictions are now the toughest among defense manufacturers.

"To the best of my knowledge, no other contractor has done it like this," said Dan Bennett, spokesman for NovaLogic Inc., a Calabasas, Calif., company that makes online computer games. "With defense spending down, they have to find creative new avenues."

No figures were available for the number of companies that have taken out the licenses, The News reported.

Lockheed Martin officials said they have no idea how many toymakers had been turning out miniature or computerized F-16s or other products before the company began licensing.

Lockheed Martin felt it had to act because so many computer simulator games were using its jet fighters, The News reported.

"NovaLogic was already working on an F-22 simulation game, and Lockheed Martin started to make rules about trying to enforce exclusive rights to the machines they make," Bennett said. "The feeling here was that it would put the game in jeopardy."

Lockheed Martin did not enforce exclusive rights with NovaLogic, but worked with the computer game company to brand a licensed fighter simulator series.

John Harbison, an aerospace analyst with Booz-Allen & Hamilton, finds it unlikely that toy royalties will be that important to a $28 billion-a-year company like Lockheed Martin. "But every dollar helps," he said.

Lockheed Martin officials said the toy companies' royalties are modest, although they refused to discuss specifics.

Royalty contracts usually require companies to pay 1 percent to 10 percent of profits from the product being licensed.

Company officials say the licensing also will benefit toy buyers, who will get more accurate representations of the airplanes.

Critics of the defense industry view the move differently.

"It's my feeling that in addition to making a sizable profit, they want to breed a generation of kids growing up . . . to believe high-priced fighters are cool," said Luke Warren, an analyst with the Pentagon watchdog group Council for a Livable World.

The defense industry began looking at toy licensing about six years ago, when Northrup Grumman became the first to register a military trademark with the B-2 "Spirit," a second-generation Stealth fighter.

Boeing also has licensed many of its products, including the DC-3, which is known as the C-47 for military use, said Chris Ross of Equity Management Inc., the marketing services and intellectual property rights firm that represents Lockheed Martin.

AP-WS-11-27-99 1529EST


Click here to return to story:
http://amarillo.com/stories/112899/tex_LG3866.shtml

© The Amarillo Globe-News Online
Old 04-18-2006 | 12:28 PM
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Default RE: New Shake Down for Mfgrs

were not talking about commercially produced vehicles. this is geared toward WW2 fighters and modern jet fighters, actually stemmed over the FA-18 hornet when Lockheed saw people are getting 20 grand for a model regardless of air frame being a small fraction of that. most of this kinda of intellectual property is owned by the government. So the companies like Lockheed are coming back with public designs and demanding royalties for them, now the modern equipment like the f-18 Lockheed still has the rights to, but planes like mustangs, sea Fury's and p-38, the old stuff are owned but government agencies. Were not copying the flight control systems and software packages which are pieces that are still privately owed. The government is pretty screwy but it not legal for them to demand royalties which they are not.
Now how did you deduce what you wrote with the article you posted? Did you actually read and comprehend the article? Even if you replace F-16 with FA-18, it's all inaccurate.
Old 04-18-2006 | 01:09 PM
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Default RE: New Shake Down for Mfgrs

Time use the ideas from the knockoff sunglass companies. Don't call it a F16. Call it a "compare to F16" model or an "F sixteen" model
Old 04-18-2006 | 01:13 PM
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Default RE: New Shake Down for Mfgrs

FWIW, I think the AMA should not bother with this. Smart airframe manufactures know good advertising when they see it. The dumb ones may not see it, so what. I suspect the only reason it is mostly military airplanes, is that our models do not help much to promote sales, not as well as with civilian aircraft.
Old 04-18-2006 | 01:56 PM
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Default RE: New Shake Down for Mfgrs


ORIGINAL: Sport_Pilot

FWIW, I think the AMA should not bother with this. Smart airframe manufactures know good advertising when they see it. The dumb ones may not see it, so what. I suspect the only reason it is mostly military airplanes, is that our models do not help much to promote sales, not as well as with civilian aircraft.
A Dash-8 going nose in on landing is not the kind of advertising they like.
Old 04-19-2006 | 07:10 PM
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Default RE: New Shake Down for Mfgrs

I am sure that companies like Northrop, Mc Donnald will really help the bottom line by demanding royalties on model airplanes. Ok lets assume we pay $5.00 on each model or even $100 on each model. Where will be demand. ZERO,, what will they make if the demand remained the same. Ok assumption $50,000 / yr. Now consider what the profit on the Herk C130 is to the mfg? $50,000,, peanuts in the big scheme of things. Just shows how desperate companies in this country have become. Perhaps we should boycot these planes if they do demand royalties. I can scratch build my OWN P51.. How could they demand royalties. Not for commerical sale. Now lets consider publicity. Sorry Little Johnny,, you can't have a plastic P51 because we can't pay the big company royalty. BUNK.. Tell them to bring it on.. Time to go after the big guys that give !@#$! to the people.

Ok,, guess I ranted a bit but I still think this is BUNK and SHAME on the aircraft companies that do this. Jim MY $.02 worth
Old 04-19-2006 | 08:40 PM
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Default RE: New Shake Down for Mfgrs

The original post was about fraudulant threats. Could you really copyright the word "wasp" without ever having manufactured something by that name?
Old 04-20-2006 | 06:49 PM
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Default RE: New Shake Down for Mfgrs

Could you really copyright the word "wasp" without ever having manufactured something by that name?
You can't copyright or trademark anything that is not being used in commerce and you have the be the one using it, otherwise it's called squatting. There are many exceptions to the law, but this is the foundation.

Point is you just can't copyright/trademark something your not going to "use" somehow.
Old 04-20-2006 | 10:07 PM
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Default RE: New Shake Down for Mfgrs

ORIGINAL: STLPilot

Could you really copyright the word "wasp" without ever having manufactured something by that name?
You can't copyright or trademark anything that is not being used in commerce and you have the be the one using it, otherwise it's called squatting. There are many exceptions to the law, but this is the foundation.

Point is you just can't copyright/trademark something your not going to "use" somehow.
Was the P-38 ever used in commerce? Did Lockheed ever market a model P-38? I thought not. Yet they got a trademark on a model of a P-38.

I call it squatting when a company like Lockheed takes something that has been in public domain for about 60 years and claims it is their trademark. Pretty obvious that the patent and trademark office has some 'trademark' slackers. Pay the fee and claim rights to anything.

Heck, UPS has a trademark on the color brown. Flush quickly, before they demand a royalty.

Abel
Old 04-20-2006 | 10:16 PM
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Default RE: New Shake Down for Mfgrs

"Did Lockheed ever market a model P-38?"

Yes, actually. And the had officially licensed P-38 models from Topping over fifty years ago.

Kind of blows a hole in THAT argument!
Old 04-21-2006 | 12:24 AM
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Default RE: New Shake Down for Mfgrs

I think the companies are really after the plastic model mfg.....they sell a TON more models that GP/Sig/etc. have ever sold!
Old 04-21-2006 | 06:11 AM
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Default RE: New Shake Down for Mfgrs

Don't forget, commerce does include when you make something FOR the government as well.

Heck, UPS has a trademark on the color brown.
They have a trademark on the color brown, a specific shade, only on their trucks and clothing. Oh and they MUST use the word brown as part of their trademark to keep this specific trademark. Again, you guys making it look like the big greedy money grubbing corporations are taking your colors away too. Maybe they will trademark the word "car" next and you'll have to walk to work.

The whole reason they have trade - marks (notice what the word breaks down to) is to identify YOU as the company that spends money on marketing and tries to create an image for yourself without someone trying to fly off your coat tails.

When you become a business owner you'll understand a lot more about trademarks and will respect them much better knowing that it's not that easy for someone to just come in and steal your brand image that you worked so hard to create. You guys make it seem that all these trademark laws effecting these RC companies is something new, they are not. They big aviation companies are getting tougher because a lot of people are making LOTS of money and they deserve a piece of the action. Also, they want to maintain integrity in the shape of what someone calls a P-38 and it's overall representation.

I think the companies are really after the plastic model mfg.....they sell a TON more models that GP/Sig/etc. have ever sold!
They are not going after anyone. They are going after their intellectual property. They don't care if you are mom and pop in garage or Revell models, all equal treatment. They typically don't charge a royalty based on your volume sold.
Old 04-21-2006 | 08:59 AM
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Default RE: New Shake Down for Mfgrs

I call it squatting when a company like Lockheed takes something that has been in public domain for about 60 years
First off it was never in the "public domain". Also it seems like many of you guys don't know what really is "public domain" versus what you think it is. Just because you see it now on the trademark website, doesn't mean it was never trademarked/copyrighted.

They are now ENFORCING their trademark/copyright, which was NEVER public domain, because production of their IP has increased GREATLY over the last few years and obviously they want a little piece of the action and they want to remain REPRESENTED.

Also I don't see any manufacturers in here complaining on any of these threads, only the consumers and the consumers won't feel ANY or very little of the repercussions of the IP enforcement in the first place. The reason that you don't see the manufactuers complaining is because THEY KNOW that they should contribute to LM/Boeings hard work. And if and when any of them do complain ... TOO BAD FOR YOU. I'm sure they can figure out a way to bury the 6% while paying slave labor wages in most of Asia.

Does anyone understand anything about trademarks/copyrights and their purpose??? I mean how does one try to answer a question politely when you have complete ignorance in how the world REALLY works.
Old 04-21-2006 | 09:24 AM
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Default RE: New Shake Down for Mfgrs

ORIGINAL: STLPilot

I call it squatting when a company like Lockheed takes something that has been in public domain for about 60 years
First off it was never in the "public domain". Also it seems like many of you guys don't know what really is "public domain" versus what you think it is. Just because you see it now on the trademark website, doesn't mean it was never trademarked/copyrighted.

They are now ENFORCING their trademark/copyright, which was NEVER public domain, because production of their IP has increased GREATLY over the last few years and obviously they want a little piece of the action and they want to remain REPRESENTED.
It went into the public domain while and because they were not enforcing it, IF there was any right to protect. Copyright, if any, would have expired after one renewal, i.e., in 56 years.
They didn't apply for trademark until ten years ago.

Also I don't see any manufacturers in here complaining on any of these threads, only the consumers and the consumers won't feel ANY or very little of the repercussions of the IP enforcement in the first place.
Then you have tried hard to ignore the model manufacturers that have been shaken down by this scam. Don Stackhouse (DJ Aerotech) has posted in threads you have posted to on this subject.

Abel


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