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Lionel gave MTH license to put their name on some of their tinplate reproduction stuff. The logo "Lionel" makes it much more valuable (at least perceived name brand recognition) compared to the same item that just says MTH. Outside of the train world few people have heard of MTH while Lionel is a household word. Even in the hobby,MTH is an off brand to some.  The reproductions are pretty much the same other than an added name tag. Strictly a business decision which benefits both companies.

 

Dale H

Last edited by Dale H

"Wow surprised to see that Lionel would do that.. To have there name on a product that they have no quality control over."

 

No one knows the details of the license, but it's likely it has performance requirements, as in all such contracts I've ever seen or heard about.  There was also a track record of MTH subcontracting with Lionel to produce Lionel branded tinplate from the late 1980s and early 1990s, and MTH producing tinplate with its own brand name for 15 years before this agreement.  MTH tinplate has a reputation for satisfactory or better quality in terms of performance and appearance.  Lionel didn't want to focus on this relatively low volume part of their line, and MTH had the experience, tooling and desire to do so.  I know people who wouldn't buy MTH tinplate with the MTH name on it, who now buy it because the Lionel name is on it, so it's probably a win-win.

Originally Posted by Erie_Lackawanna:

Wow surprised to see that Lionel would do that.. To have there name on a product that they have no quality control over.. Very interesting..

It's very simple.

 

MTH had been making reproductions of Lionel tin for years,(dare I say decades?) the only thing missing was the Lionel branding.

 

It made more business sense for Lionel to sign a contract with MTH than to invest in tooling and assembly resources for a relatively small slice of the model train pie.

 

Rusty

Originally Posted by Erie_Lackawanna:

Wow surprised to see that Lionel would do that.. To have there name on a product that they have no quality control over.. Very interesting..

Every licensing deal I have ever seen or been involved in has a copyright owner approval clause. So I am sure it's like every other deal out there.....a profit center.....

"Any speculation about it being part of the "settlement" is just that, speculation."

 

Indeed. The MTH-Lionel licensing agreement was announced some time after the settlement of the lawsuit (which was concluded via negotiation in the chambers of the bankruptcy court judge).  In other words, no one actually "won" anything except the right to move on without further legal action on either side.  As far as is publicly known, and as seems highly likely, the agreement for MTH to produce Lionel branded tinplate was a mutually agreeable and beneficial partnership that did not involve any court or legal mandate.  The notion that somehow MTH won this right through their lawsuit is unsupported by anything factual, as far as is publicly known, and is strictly in the imaginations of the hobbyist community.

Last edited by Landsteiner
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