It isn't just the railroads trying to skim money from the modellers. http://wcbs880.com/njnews/NJ--ToyDispute-jn/resources_news_html Bill would ban manufacturers from collecting fees from toy makers Sunday June 05, 2005 WASHINGTON (AP) Connecticut-based Sikorsky Aircraft and other defense contractors would not be able to collect fees from companies that make toys based on military products, under a provision in the defense authorization bill before Congress. Contractors like Sikorsky, based in Stratford, say they want compensation from toy companies that are using their intellectual property. The toy industry, especially companies that make models of military machinery, are frustrated by the contractors' attempts to recoup licensing fees. "It is just greed. What else could it be?" said Mike Bass, president of Stevens International in Magnolia, N.J., which distributes model kits. The model industry's annual sales in the United States total about $100 million, only a small percentage of aerospace industry's revenues, said Bass, who has been a model kit wholesaler for 25 years. Sikorsky, which employs nearly 9,000 people, had an operating profit of $213 million on $2.5 billion in revenues in 2004. The Connecticut Post reports that the company has apparently asked for a fee of 12 cents to 25 cents on models that sell in stores for $10 apiece. "We are happy that model builders are interested in our products," Ed Steadham, a Sikorsky spokesman, told the newspaper. "However, Sikorsky makes a considerable investment in its intellectual property and we feel it is fair that others compensate Sikorsky if they are using our intellectual property in their business." "The subject of ownership of intellectual property has been fully negotiated in our contracts with the U.S. government and we comply with the applicable regulations and contract provisions," Steadham said. Bass has been fighting the licensing issue for the past year by launching a letter-writing effort. Just before Memorial Day, the House approved an amendment to block defense contractors from seeking royalties on toys. The amendment, offered by Rep. Rob Andrews, D-N.J., was included in the 2006 Defense Authorization bill that also earmarked $1.7 billion for the Pentagon to purchase 84 Black Hawk variant helicopters made by Sikorsky. The Senate has not yet acted on the proposal. Hobby store owners like Randall Johnston say they were surprised that defense contractors were going after license fees. "To me it is kind of a joke. I would look at it as free advertisement," said Johnston, owner of HQ Hobbies in Milford, Conn., which sells many Black Hawk models. Andrews said large defense contractors have tried to extract royalties for plastic model manufacturers to pad their profits at the expense of military model enthusiasts. "These ships and planes are designed with public money. They are conceived of with public money, and we do not think the American public should pay for this twice," he said. Gary R. Kazin DL&W Milepost R35.7 Rockaway, New Jersey http://www.geocities.com/gkazin/index.html __________________________________ Discover Yahoo! Have fun online with music videos, cool games, IM and more. Check it out! http://discover.yahoo.com/online.html The Erie Lackawanna Mailing List Sponsored by the ELH&TS http://www.elhts.org ------------------------------
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