All right I will tell how much UP charges for licensing here is what I found off of the application form for modelers these are the only fees listed:
Option 1
A royalty of three percent is payable on any product bearing a modern, historic, or constituent logo licensed by Union Pacific. The
licensee will pay an advance on royalties based on the wholesale price of the product(s) and estimated annual sales of UP-branded
products.
Option 2
An annual fee of .5 percent (one half of one percent) of total licensee gross sales of all model railroad products will be paid to
Union Pacific. Gross sales will be calculated on the most recent completed year of sales and will be based on an audited financial
report. Licensee applicants with gross sales in excess of $1 million should contact Union Pacific for additional information.
Option 2 is based on the assumption that Union Pacific-branded merchandise comprises roughly 20 percent of average industry sales;
licensee applicants whose Union Pacific-branded inventory comprises less than 20 percent may want to consider selecting Option 1.
Three percent is not that much on a 150 dollar loco UP makes a whopping $4.50.
Or the modeler can choose to base the price on all of his products and it won’t matter what you buy UP will make a 1/2 of a percent (NOOOOOOOOOOOOOO!)
Just wanted to let you people know what is going on. Have you really been screwed by UP?
Guys With all due respect stop beating a dead horse since there isn’t a thing you can do about it except to be childish and say"I won’t buy U.P or sillier yet I sold or painted my UP stuff… So? Who cares? The manufacturers is still producing U.P engines and cars so there must be a market demand…You bash U.P and yet let CSX and AMTRASH slide. …
I am not bashing the UP, quite the opposite; I am attempting to point out to these people the flaws of their beliefs, so that they will shut up. I think there is nothing wrong with any of these railroads doing charging for licensing.
Three percent is not that much on a 150 dollar loco UP makes a whopping $4.50.
Wrong again! That’s the retail price. Wholesale is probably under $75.00 so it is one half that maximum. But if you want to look into greed I’d rather pay that to UP then what the taxes are on it. It amazes me that people get upset about (in this case $4.50 on a $150.00 loco) when they are paying well over $15.00 in taxes in most cases.
Many of the UP decorating elements could be produced by one’s own printer on commercial white or clear decal paper, just like lettering for my ‘neverwas’ Canada Southern SW-1500. I’m not Pollyanna (or Max Grey), but it seems like a good time to enjoy scratch-decaling. So much for “shake the box” kits, ready to run engines, and licensing fees.
Elvis makes more now dead than he ever did when he was alive. If it was your name or logo you couldn’t dial a lawyer fast enough if you thought someone was making money off it.
Just as long as I can get Rio Grande, SP, MoPac and Western Pacific 1940’s era boxcars, flats and gondolas, I’ll be a happy camper. Other than that , UNION PACIFIC is just the name of a 1939 western movie with Barbara Stanwyck and Joel McCrea.
Tom [^]
This also came from the UP website, does this soud like the shareholders get all the money?, pay special attention to the bottom paragraph.
The Union Pacific licensing program is designed to allow manufacturers of branded merchandise to use the names, symbols and heralds of the company in an accurate and successful manner. This includes the constituent and historic railroads that currently make up the Union Pacific system. Licensees will receive program support from the company and will benefit from the company’s investment in a much larger licensing and branding program.
Highlights of the program include:
A rate structure for model train manufacturers that is significantly below industry licensing standards. For example, on a $10 item royalty rates are pennies.
Continuing support of licensees with graphic standard compliance and new product introductions.
Access to trademarks and service marks of the Union Pacific Railroad Company and other railroads that are now a part of the modern Union Pacific system, which are among the oldest and most valuable trademarks in the nation.
The opportunity to benefit from Union Pacific’s increased investments in public awareness advertising and programs.
I understood your point, but you always run a risk when posting something that is obvious to you as being sarcastic. I started a tongue in cheek thread where I said since it is so obvious to everyone (this is sarcastic on my part) that the manufacturers are out of touch with the modelers and charging outrageous prices then it should be very simple for someone to start producing great running engines with fantastic levels of detail and very low prices. While I thought it was an obviously tongue in cheek post there were dozens of responses of “Dave get a clue - you want Kato quality at Blue Box prices” and “you have no concept on business” etc etc etc. Oh well!
Dave, I remember that thread. Your thought was right-your post was clearly a tongue in cheek. I was amazed that so many people did not see it as such. I’ve got to be careful, too. Sarcasm is something I regularly engage in, and I’ve found it is understood as such less than half the time out here. Even with the emoticons provided, people still miss it.
Makes me wonder if the world has gotten so stiff and incapable of appreciating any attempts at humor (or levity) that we are all destined to be like the Bank Examiner in It’s a Wonderful Life.
All that money probably disappeared into the paint vat for the new Fallen Flags scheme that the UP recently put on two units with plans to paint several more.
I personally dont have any UP items in my house so… not a big deal.
Adelie… awesome post. I forgotten about that movie.
That’s far less money than what the NFL makes on trademark licensing. How many of us own Cowboys, Dolphins, Vikings, Jets, Buccaneers, Packers, Giants, etc, goodies? LIke shirts, hats, towels, scarves, photos, mugs, mini helmets, pencils, notebooks and so forth.
I don’t like UP’s current managment style, but I like the Union Pacific that I read about way back when I was a teen in the 70s.
I don’t think this adds much to the discussion unless you are making the statement that you do not buy anything that has licencing or royalty relationships.
