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Why did MTH sue the Metropolitan Transit Authority

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3.1K views 16 replies 8 participants last post by  lionellines  
#1 ·
I was aware that the New York Metropolitan Transit Authority (MTA) had moved its license from MTH to Lionel some time ago. However, I was really surprised when I was googling something yesterday and stumbled across a court document showing that MTH sued MTA last November to stop them from enforcing their exclusive license with Lionel.

They lost.

I like MTH products, including their subway products, but I really wish they would just play nice in the sandbox and not play nasty in the courthouse. It's tiresome. Let the focus be on making trains, not lawsuits.

If you're interested in the details, here's a link to the court document: https://www.leagle.com/decision/infdco20161205679

Happy Thanksgiving to all!

Keith
 
G
#2 ·
I didn't read the whole thing but from what I read I'm with MTH on this. The MTA granted an exclusive license to Lionel which means that Lionel is the only train company that can sell models of MTA trains. If other railroads negotiate exclusive licenses there will be only one manufacturer licensed to make that roads trademarks. There would be no competition and that manufacturer would be able to charge whatever they wanted for their products.

An example would be if UP issued an exclusive license to Atlas to manufacture trains with the UP trademark or any of the fallen flag trademarks they own. The consumer would have only one choice if they wanted models of any of those roads equipment. Atlas could charge whatever price they could get away with since no other company could offer alternative products.

This may be legal but it is very bad for model railroading.
 
#6 ·
Your point is well taken with regard to the railroads, but it seems that the use of trademarks may work differently with the public transit authorities.

MTH used to have the license for the MTA. Currently, they have the license for the Chicago Transit Authority. Having lost the license for the MTA, MTH sued the MTA to prevent the MTA from licensing the MTA's trademarks (in this case, to Lionel).

Seems like MTH wants to have it both ways with regard to licensing transit authorities' trademarks.

What I'm thinking is: Can't we just play by the rules, stay out of the courtroom, and make trains?
 
#3 ·
No boss at the NYC MTA cares anything about railroading.

It's why the LIRR schedule has trains that take longer than the same route back in the days of steam. It's why trains many minutes late are considered 'on time'.

The MTA is led by lawyers and politicians. A leadership role there is a reward for past political patronage.

Lawsuits? Makes their day. Gives them purpose.
 
#13 ·
A recall, it was Chessie System that started the copyright enforcement back in the 1980's. It encompassed Chessie and all prior entities including B&O, C&O, WM and others and extended to model trains to t-shirts and hats...

Tom
 
#14 ·
.... Let the focus be on making trains, not lawsuits. ...
Keith
I've never bought anything from MTH. All these years.

When I, and the rest of the hobby, was thoroughly enjoying the advent of DCC in HO, Mike Wolf and his legal team came in with their lawsuits. The bad feeling never left me.

In O scale, I've been quite happy with only the products of Lionel, Atlas, and Weaver.
 
#16 ·
Keith, I was thinking about UP and their licensing of model trains a few years ago. They required manufacturers to purchase a license to make any UP or UP owned fallen flag models, but it wasn't exclusive to one manufacturer. It did hurt small manufacturers who couldn't afford to purchase the license.

Yep, MTH took on the UP and was able to get the RR's to drop their licensing demands. If I remember correctly Atlas rolled right over like a wounded duck and started factoring in a charge for products with RR logos.

Bill