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For years the Union Pacific Rail Road’s paint schemes and logos have been one of the biggest sellers in the toy train hobby. My first O-guage train was a UP diesel in their famous yellow and grey. However, in 2005, someone at UP decided that the manufactures of toy trains were stealing UP’s logo and designs and profiting from these trademarks. So UP sued each and every manufacture for royalities both past and future. After some negotiation some of the manufactures settled and signed licensing agreements with UP–the cost of which would most likely be passed on to the buyer. One, Mike’s Train House, and its founder, Mike Wolf, did not but took UP to court. This week UP, more or less, capitulated, giving all hobby manufacturers free use of their logos and trademarks. This was due entirely to Mike Wolf’s stubborness and suit.

From MTH’s press release on the settlement:

November 8, 2006 – M.T.H. Electric Trains and Union Pacific Railroad are pleased to announce that they have amicably settled the trademark infringement case that U.P. filed against M.T.H in Omaha, Nebraska federal court. The settlement benefits both parties, as well the entire model railroad industry. It allows Union Pacific to continue to protect its intellectual property, and authorizes M.T.H.’s use of Union Pacific’s trademarks and paint designs on model train products and accessories. Union Pacific has also decided to change its trademark-licensing program so that model railroad manufacturers will no longer have to pay a royalty, and will enjoy a perpetual license to use Union Pacific trademarks and paint designs on model railroad products.

In reacting to the end of the year-long legal battle, M.T.H. recognized the commitment of U.P. to make a change. “UP deserves a lot of the credit here,” M.T.H.’s founder and President Mike Wolf stressed. “UP’s willingness to reconsider its position with regard to model train manufacturers’ use of its trademarks allowed a deal to be struck. UP has long been a friend and a steward of the hobby and this new license reflects that.”

Wolf added that the case was a big drain on M.T.H.’s resources but worth the effort. “For seventy years, Union Pacific and the other railroads have worked with our industry to develop and nurture the model-railroading hobby. The UP license that had been in effect did not properly reflect that mutually beneficial and rewarding relationship.”

Bob Turner, Senior Vice President Corporate Relations for Union Pacific, said, “Mike Wolf is to be commended for his commitment to the model railroad industry. His energy and passion helped us find a solution that will better reflect the positive relationship that Union Pacific and the model train industry have enjoyed for many years.”

What is interesting to note is that this agreement benefits all toy train manufacturers, even those who caved in and signed licensing agreements with UP. Mke’s state purpose was to get an agreement with UP that include all manufacturers so as not to give him a competitive edge–something that is interesting in this day and age. Mike should be congratuated for this win and the toy train buyers should thank him for saving their money.

I took my wife and grandson to their first Syracuse Train Fair at the NYS Fair grounds yesterday. From the looks of things a good time was had by all

There were a lot of layouts of every size from G through Z in two large buildings. My grandson was especially impressed with the Flower City Trackers O-gauge layout because there were buttons that allowed you to operate accessories–in this case planes flying around a pylon.

Again, this circus tent is just a part of the Flower City layout–the amount of detail on these layouts is amazing. If one had time they could spend an hour just on one layout. Circuses are a big thing, by the way, and there were some layouts devoted just to them.

Periodically over on the O-Guage Forum we get to arguing about the state of the toy train hobby, especially where it is headed and what the members can do to expand it. The biggest problem with electric trains lies in the fact that the vast majority of those involved with them do so primarily through nostalgia. Most are males in their fifties or older that either had toy trains as a kid–generally a hobby they shared with their dad–or because they remember the real thing from their childhood. In both cases, that demographic is shrinking. Kids of this generation are not into sharing much of anything with their parents. Since Dad isn’t usually into computer games and, certainly, the chances of today’s youth coming in contact with trains, aside from commuter types, is very small. In short, the toy train hobby, which is a small, niche hobby to begin with, will probably shrink dispite our best efforts. All the talking on the OGR forum or anyplace else, for that matter, isn’t going to help.

In case you’re not in the loop: The York train meet is Thursday afternoon through Saturday of this week (April 17-22). The meet at the fairgrounds is only open to members of the Train Collectors Association and their guests, but there are “Bandit Sales” around town on Monday through Wednesday. (Never having gone to one, I’m not sure of the locations but know there is one at the Holiday Inn on Rte 30 just east of I83. If you start there I’m sure someone will give you directions to the rest.)

On the other hand, if you’ve never been to the actual meet, wish to go, and need a sponsor–guests are allowed in once per lifetime–stop in at TGIFridays on Rte 30 between 7 and 10 pm on Thursday night. There is always a bunch of TCA members/OGR Magazine readers there for an annual get together and most will be glad to sponsor you for entry into TCA. Just bring money for membership and to buy train stuff the next day.

For those not up on these things, today’s toy electric trains can be operated using two different methods: the old fashioned conventional control whereby one’s trains move when more electricity is applied to the tracks and the modern command control where one uses a device similar to a TV remote to send command signals to the trains. The latter comes in two varieties: one from Lionel, which has been around since the early 1990’s and the other from Mike’s Train House, which hit the market in 2002. Both systems and varieties have supporters (see my post on Louies/Moonies).

I got into the hobby just as the MTH variety was being touted–but before it hit the market–so my layout is wired for and uses this type of command control. I doubt that I’d run my trains without this kind of help since it allows me to do things with my trains without a lot of complicated block wiring and special attention while they are running. For example, I can run two locomotives on the same loop of track without having to worry about their rear ending one another.

While only about half of those running electric trains use one or the other of the command systems, I have a feeling that if there is going to be a new generation of toy train hobbyists, these systems are what are going to draw them in. Given the fact that youngsters are so technically oriented the “Gee Whiz” factor of the command control is going to get them hooked. Certainly they aren’t going to be drawn in because they see trains running around their towns like the older generation has been. (In case you’re interested, toy train enthusiasts tend to be in their late fifties or older.) It bothers me, however, that there are Luddites in the train hobby that, given their druthers, would discourage the use of any kind of command control.

While we were away last week, the registration form for the April York arrived. Now I have to decide if I’m going to go and, if I am, get the form back to the Eastern Division.

I’ve written about the York train meet in a previous blog that you can find in my archives( under Electric Trains) so I’m not going to repeat it here except to tell you, for a toy train enthusiast, especially one that is “into” O-gauge trains, it is a must do. This April’s event officially runs from noon on Thursday April 20 through 2 pm on Saturday, April 22nd but the bandit meets will start on Tuesday so come early and enjoy. As they say, “Bring Money!”

Remember too that you have to either be a member of the Train Collectors Association or come as a guest with a member in order to get into the buildings on the fair grounds. However, if you aren’t a member, you can join at York—just get two members to sponsor you and pay your $50. (Sponsorship usually isn’t too hard as many are quite willing to add their names to applications of people they hardly know.)

Aside from the sale and displays of items, there is always a get-together of members of the OGRR forum in the fair ground’s grandstand on Friday at 2. This meeting, sponsored by OGRR Magazine, features speakers from the various manufacturers and followed by a Q & A session. You can never be too sure who will show, either. Last April it was Neil Young. Also a bunch of us meet up at TGIFriday’s on Thursday evening for dinner and a bull session—again you never know who is going to make an appearance. BTW, of these sessions require neither TCA membership nor York registration so anyone is welcome. So if you live close and want to make an appearance come on down and say “Hi”.

A couple of days ago I wrote about the two extreme groups in the toy train hobby–Louies that undyingly support Lionel and Moonies who do the same for Mike’s Train House. Well, they are at each other over on the OGR Forum. Check any of the treads that involve Lionel or K-Line and enjoy.

In case you came in late.

Act I. On June 7, 2004, MTH won a civil suit in Michigan federal court against Lionel. The basis for this suit was the theft of model design and the subsequent cover-up by Lionel’s Korean manufacturer ( Korean Brass) from MTH’s Korean manufacturer (Samhongsa) at the behest and knowledge of one or more of Lionel’s execs –the Koreans involved were convicted in their country of this theft. The judgment was for slightly under 40 million dollars, something Lionel neither had nor was not about to pay to the company they considered their biggest competitor, So they took the next best legal steps, filed for bankruptcy protection and appealed the case. This result set off a flurry of activity whereby Louies accused MTH of trying to put Lionel out of business or at least in a position where it could be gobbled up by MTH. They also dismissed the judgment as something that was both wrongheaded and would be overturned on appeal. The Moonies, on the other hand, joyously hailed the win and pointed out that big bad Lionel, who had tried to get an unfair jump in production through this theft and caused MTH to lose a considerable amount of money in sales, had gotten exactly what it deserved. They also decried Lionel as a big crybaby who should admit defeat and pay up or else.

Act II: K-Line, another, albeit smaller, manufacturer of electric trains, in an attempt to become a bigger player in the field, “came up” with a mechanism for their locomotives which would regulate the movement of the trains. Called cruise control, this feature, which is found in both MTH and Lionel locomotives, means the operator of the trains could gradually increase their speed and that the locomotive would hold this set speed regardless of the gradient of the track. This is desirable in toy train operation because it allows the running of more than one locomotive on a loop of track without rear-end collisions. Now, while the design of MTH and Lionel cruise controls are different, it turned out that the one “invented” by K-Line’s engineers was exactly like the one patented by Lionel. (It should also be pointed out that the engineer in charge of K-Line at this point was also the one who was the bad boy in the Lionel/MTH suit.) At any rate, K-Line was judged guilty of patent infringement and required not only to remove the stolen cruise control device from all their products but to also pay Lionel a considerable settlement. Since K-Line was already in a serious financial bind, this judgment pushed them over the edge to bankruptcy and insolvency. For all intents and purposes, K-Line is now out of business.

Act III: K-Line had a large inventory of brand new and very desirable locomotives at its manufacturer’s, Korean Brass (if this sounds familiar, see above) that it had not paid for. These locos were equipped with the stolen cruise control units. To recoup some of its money, Sun Model Corp. was given the job selling these locos to the American public at an exceedingly low and very desirable price. However, after a large number of these units had been sold but were still not sent, Lionel stepped in and enjoined Sun from shipping because the units still came equipped with the illegal cruise controls. This caused a huge hue and cry from customers who were picking the bones of K-line in the hopes of a bargain. In a PR coup, Jerry Calabrese, the CEO of Lionel issued a public letter to train enthusiasts everywhere in which he graciously rescinded the stop order and allowed Sun to continue shipping. This put the Louies in ecstasy and caused even nonLouies to fall over themselves to heap praise on Lionel and its CEO.

Act IV: However, in the same letter, Jerry announced that Lionel had acquiring the assets of K-Line, presumably to settle the judgment against K-Line, and would incorporate the name into Lionel’s line. Now the Moonies are asking in effect, “Hey, wait a minute, if Lionel is in bankruptcy how can they buy out the bankrupt K-Line?” This has restarted the whole argument that arose back on June 4, 2004 whereby lawyers and nonlawyers alike are offering legal opinions galore. This now has Louies and Moonies at each other’s throats while those who do not have a dog in this fight (most of us) sit by and watch, adding a bit of fuel to the fire to keep it going. It makes one just a little bit sad to think that spring will soon be here and force us to spend more time away from the computer, thus missing all this give and take.