Dont know if this is new or not. http://www.freep.com/news/statewire/sw99106_20040607.htm Detroit federal jury orders Lionel train-maker to pay rival $40 million June 7, 2004, 6:42 PM DETROIT (AP) -- A U.S. District Court jury ruled Monday that model train-maker Lionel LLC and others should pay $40.8 million to rival Mike's Train House Inc. for misappropriating its designs. Mike's Train House of Columbia, Md., sued Michigan-based Lionel in 2000, saying that Lionel sold trains made from designs stolen from a South Korean manufacturer hired by Mike's Train House. The jury found that Lionel, along with its supplier Korea Brass Co. Ltd. and an individual, Yoo Chan Yang, earned millions of dollars by misusing designs that belonged to Mike's Train House. Mike's Train House was founded in 1980 by Mike Wolf, who started the business assembling trains in the basement of his parent's Maryland home. "We believe in pursuing our legal rights and felt that a court challenge was the right thing to do," Wolf said in a news release. "Laws protecting innovation and the development of new technological improvements ensure that manufacturers will keep investing in their products. Ultimately those improvements provide consumers with better choices, operating features and overall product value." Messages were left with Lionel, based in Macomb County's Chesterfield Township, seeking comment Monday evening. According to the lawsuit, an investigation in 1999 by South Korean authorities found that designs belonging to Samhongsa Co. Inc., which subcontracts for Wolf, had been stolen by a competitor, Korea Brass. Three former Samhongsa employees and one Korea Brass employee were charged with stealing trade secrets. All four pleaded guilty in 2000, the lawsuit said. ------ On the Net: Lionel LLC: http://www.lionel.com Mike's Train House Inc.: http://www.mth-railking.com [ 08. June 2004, 12:15: Message edited by: virtual-bird ]
This sounds like it's a really big mess. I don't know how large of a bank account Lionel has, but if this stands, after a probably lengthy appeals process, it will certainly hurt them quite deeply. I had Lionel and American Flyer trains as a youth. Those days seemed so much simpler...... Boxcab E50
Between this and the UP lawsuit. Things don't look good for Lionel. I'm no big MTH fan, but without having all the facts of the case, it's hard to beleive that Lionel didn't know what was going on with their contractor.
