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[BRHSlist] Licensing trademarks: Q & UP

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Subject: [BRHSlist] Licensing trademarks: Q & UP
From: milepost206@mchsi.com
Date: Sat, 20 Dec 2003 13:28:03 -0600
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Hi,

I don't want to perpetuate this thread because it has taken up so much 
bandwidth in other groups that it has become nauseating. But there are 
some issues that need to be considered.

1. The BNSF DOES have a licensing program and you DO need a license to 
produce goods bearing their marks including the CB&Q. The fee is very 
reasonable.

2. The UP can do whatever they want with their marks. It's their toys - 
their rules. However, they should have given this program more thought 
than they did. This has been a boondoggle since day one. It is perfect 
example, among others, of management gone awry. And lots of times, these 
programs are implemented by license management companies that promise a 
given return when they manage your marks. Somebody forgot their common 
sense.

3. If you own intellectual property (IP) you must uniformly administer 
the management of that IP. You must treat everyone, and every mark, the 
same. What's good for one is good for another. No special treatment. And 
you can't claim something you don't own as yours.

4. The UP's license program is clearly stated in their PDF application 
file found online. None of the information is unreasonable except for 
asking that the applicant provide audited financials. There are very few 
model rr companies of a size that can afford to pay for an audit. I have 
heard that they are flexible on this issue for small companies.

5. The UP fee of $100 for $3000/year sales of UP merchandise a year is 
reasonable. Got to CAT, Coke, Ford, Disney and check their programs out. 
That will give you pause to believe in Santa Claus. CAT generates 
hundreds of millions of dollars a year in licensed goods. It is their 
option to do this. And don't mess with 'em. They will have you for lunch.

6. Like it or not, since high tech came roaring to Wall Street 
intellectual property has become a buzz word and a real line item asset 
to a company's net worth. If the analysts think you should better manage 
your IP to preserve your rating, you will find a way to better manage 
your IP.

7. If you own a brand and people are diluting your brand's value through 
poorly made merchandise and poor representation of the trademarks and 
logos, the brand owner has had their asset value diminished. This is 
what started licensing long ago. Poorly made automobile models came from 
offshore and the auto manufacturers got mad. And if you make more money 
with your product by using the UP trademarks, shouldn't you pay for that 
enrichment of your product.

8. If we spend the money and effort to develop intellectual property and 
you want to use it, you better get permission. We will come after you. 
And why shouldn't we. It's our property. We developed it to make money. 
I wouldn't came to your house and use your lawnmower to mow grass for a 
living.

9. There are very few products that cannot be made to absorb a royalty. 
If their IP makes you more money, then pay for that use. If paying a 
royalty  isn't an option, get out of the business. You're wasting you 
time and talent.

10. And to the guy making signs, make them. The UP never copyrighted 
that material. If it contains their trademarks, that's another story. 
Get a license.

11. Never assume anything about copyright and trademark law. Remember 
the first 3 letters in the word assume. And that's what you're going to 
be and what will get chewed, when you don't get permission.

Well, that should have stirred everyone up a little. Don't write me. 
Tell the railroads. By letter, not email. It's far too easy to hit 
delete. It won't do any good though. This program at UP will have to die 
on its own, or as most, be diluted to let the little guys play trains 
and prevent the big guys from abusing their marks.

Wish it was better news.

Seasons Greetings.

Randy Danniel













 

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