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"HONGZ" stands for HO scale, N scale, G scale, and Z scale.

Post your non-O scale stuff here!

@MartyE posted:

(8/10/18)

From Lionel's website and Facebook page.

MODEL POWER ANNOUNCEMENT

Lionel is pleased to announce that it has agreed to a deal with ATI Model Products Inc., doing business as Model Power, to acquire a broad range of model train tooling used to produce the Model Power/Mantua product lines. Final details of the agreement are being worked through and the assets are expected to transfer to Lionel in September of 2018. This strategic acquisition will accelerate Lionel’s expansion in the HO category, while adding complementary products and accessories to other portions of its business. More details will be shared as they become available.

And here is where it's at today.

Owner of toy train molds sues Lionel for royalties

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That should be interesting as it plays out, would love to hear who/what interfered with the contract, or rather who Lionel claims interfered with it.  Given that as far as I know Lionel hasn't exactly stormed the HO waters, it would lend credence to the claim they were trying to get out of the contract, but who knows? As they say, tell it to the judge (though usually these kind of things get settled out of court).

As it is said, "the Devil is in the details."   But also remember,  as "Judge Judy" said, " I am a 'truth machine'. "

The last litigated "glorious victory" (K Line's judgment) against Lionel was short lived, and so was K Line, after the initial result was reversed when appealed, which was another case of, "He who laughed last ... laughed best," first to the bankruptcy court and then the bank.

The law "is" certainly a "slippy slope" and so is the definition of the word "IS" ... according to Bill Clinton.

  Quare Clausum Fregit says it all !

not enough information. the deal started in 2018 for $100,000 in royalties then continued for 3 more years until 2021. At that rate Lionel would have paid $400,000 in royalties of a 5 years $500,000 deal.

So how after 4 years do they owe $266,774 for unpaid royalties, fees and interest.

$400,000 in storage for what? train parts, drawings, ????

not enough info here.

Lots of over-reaction here .  This is about peanuts, relatively speaking, financially,  and no one with any sense is going to spend 100s of hours of legal fees (at $500 per hour minimum, guesstimate) to actually litigate this.  It's a nuisance lawsuit in all likelihood,  to get Lionel to negotiate a settlement of whatever issue(s) exist,  without trial. Ho hum in my view.

Last edited by Landsteiner

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