Skip to main content

Reply to "Atlas' Acquisition of MTH Tooling"

"This isn't a licensing agreement."

You're correct. What I should have written is that I'm guessing Atlas has"purchased" the exclusive rights to use the MTH tooling.  And that the purchase agreement isn't likely a straightforward capital acquisition but rather a royalty per use to avoid upfront expenditure of millions or tens of millions of dollars to literally purchase the tooling rather than the rights to use the tooling.  Licensing is not the correct term for what I'm guessing is happening.   At least  that's what I'd do to minimize risk in case the market isn't there for adequate volumes. 

There's a good bit of uncertainty which will only be clarified when Atlas announces its intentions. And those may change over time and experience.   One or two locos to begin with?  An actual catalog?  DCS, TMCC or both?  The devil is clearly in the details here.

OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
330-757-3020

www.ogaugerr.com
×
×
×
×
×