Top Flight Kits in Danger of Being Discontinued?
02-04-2005, 02:40 AM
#1
Senior Member
Thread Starter
Top Flight Kits in Danger of Being Discontinued?
There was a thread at RCGroups regarding hungry lawyers hunting for royalties on some airplane designs.
Wasn't sure if this was an urban myth or not. Any truth to this and if so, which models are in danger of being discontinued or getting taxed with the royalty?
http://www.rcgroups.com/forums/showthread.php?t=329379
named "Manufacturers Demand for $40/kit=death of scale RC models?"
For your info, here is the first post in the thread:
Found this online today. Could this be the end of RC kits other than abstract sport models? This could potentially kill the likes of GWS in the USA if intellectual property rights were informced and imports banned.....
THE WAY THINGS REALLY WORK: Why Plastic Aircraft Models are Going Away
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.
Comments?
Jon Andrews.
Wasn't sure if this was an urban myth or not. Any truth to this and if so, which models are in danger of being discontinued or getting taxed with the royalty?
http://www.rcgroups.com/forums/showthread.php?t=329379
named "Manufacturers Demand for $40/kit=death of scale RC models?"
For your info, here is the first post in the thread:
Found this online today. Could this be the end of RC kits other than abstract sport models? This could potentially kill the likes of GWS in the USA if intellectual property rights were informced and imports banned.....
THE WAY THINGS REALLY WORK: Why Plastic Aircraft Models are Going Away
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.
Comments?
Jon Andrews.
02-04-2005, 07:59 AM
#3
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RE: Top Flight Kits in Danger of Being Discontinued?
This could very well be true. Last year I wrote a suggestion to Top Flite that they kit a Gold Edition P-38. I posted the response in "Twin & Multi-Engine Aircraft". Top Flite basically said they would like to do a P-38 but the royalties demanded by the company that has the rights to the design (not Lockheed) would make it unfeaseable.
That discussion brought on a lot of responses wondering if manufacturers have to pay royalties for their scale kits. Of course there are P-38s that are kitted by other companies but I don't know if they are paying royalties to do so.
I seriously doubt corporations care much about what happens in our relatively small industry as long as they are increasing their revenue. I just imagine some corporate schmuck getting a bonus for his great idea of going after model manufacturers kitting an airplane of the design they have the rights to. [:'(]
That discussion brought on a lot of responses wondering if manufacturers have to pay royalties for their scale kits. Of course there are P-38s that are kitted by other companies but I don't know if they are paying royalties to do so.
I seriously doubt corporations care much about what happens in our relatively small industry as long as they are increasing their revenue. I just imagine some corporate schmuck getting a bonus for his great idea of going after model manufacturers kitting an airplane of the design they have the rights to. [:'(]
02-04-2005, 10:42 AM
#4
My Feedback: (11)
RE: Top Flight Kits in Danger of Being Discontinued?
Some companies require certain types of agreements before any of their products may be used as models. This will vary from company to company. The requirements of those agreements will influence which models may be produced.
It is the full intention of Top Flite Models to produce quality models in the Gold Edition design series, and they are working with various companies to produce those models.
It is the full intention of Top Flite Models to produce quality models in the Gold Edition design series, and they are working with various companies to produce those models.
02-04-2005, 06:18 PM
#5
Senior Member
Thread Starter
RE: Top Flight Kits in Danger of Being Discontinued?
Maybe it's because you can't say, but I was wondering if I should be stocking up on some of the Gold Edition kits I was wanting to build before they (might) disappear!
Can you be more specific, Bax?
Can you be more specific, Bax?
ORIGINAL: Bax
Some companies require certain types of agreements before any of their products may be used as models. This will vary from company to company. The requirements of those agreements will influence which models may be produced.
It is the full intention of Top Flite Models to produce quality models in the Gold Edition design series, and they are working with various companies to produce those models.
Some companies require certain types of agreements before any of their products may be used as models. This will vary from company to company. The requirements of those agreements will influence which models may be produced.
It is the full intention of Top Flite Models to produce quality models in the Gold Edition design series, and they are working with various companies to produce those models.
