There have been occurrences, at large IPMS model conventions and contests, where state officials went through the vendors’ area shutting down and charging those who had not obtained a state sales tax permit (apparently Ohio is notorious for this. Ed). Well what if the “gummint” man went through the contest room and confiscated those models that didn’t have proper license agreements. Sounds absurd, doesn’t it?

The following is a letter from Lewis Nace, President of Minicraft Models. If you think it couldn’t happen in Canada (or the US)... think again!

“Some months ago we exchanged messages about the threat of licensing demands by the US Military. It is now official that the first of the US military licensing demands have been made, the first being the US Navy.

“Last year this topic first came up because a container shipped to a Minicraft customer (MMD) was seized by US Customs because a model kit had a decal representing the seal of the US Coast Guard (it was a Trumpeter container not a Minicraft container). That situation did not affect Minicraft  because we do not currently offer a kit with US Coast Guard markings, but the lesson was obvious – the US military branches are by way of US Customs starting to enforce “new” trademark laws. Minicraft will no longer consider marketing any subject that requires reference to the Coast Guard going forward.

“However, given the nature of the Minicraft line, I have a minimum of 2 military licenses I must contend with, the US Navy and the US Air Force. In the past we often offered optional markings in kits but that will no longer happen. If we were to include markings for a Navy and an Air Force airplane in the same box we would be subject to licensing both branches of the service. The US Army, US Marine Corp, US Navy, US Air Force, US Coast Guard all have a SEPARATE license all with separate procedures and royalty requirements. We cannot triple our licensing cost. 

“If modelers wonder why their selection has narrowed this might help explain it. The cost of licensing? Licensing costs are all pretty similar for Ford, Boeing, Lockheed-Martin, Northrup-Grumman, Cessna etc. It looks like the US military licensing fee will be the same and this will effectively double Minicraft licensing costs. EACH licensing authority will need to approve the product and each have their own special requirements all of which adds to the time it takes to develop new product. Many licensing groups are starting to require the use of an “OLP” hologram and we are expecting to have to reserve space on the box to line up the OLP holograms! Manufacturers will have no alternative but to increase the price to the consumer. 

“If model enthusiasts are unhappy about the state of the industry invite them to contact their Congressional representatives. Model kit manufacturers now need to wade through licensing agreements, pay royalties and follow accounting requirements and not only pay manufacturers for designs and license holders for ships tanks and airplanes the US military used decades ago, but now also pay each individual branch of the service depending on the decals included in the kit.

“Incidentally legal advisors have also recommended removing any reference to crews or pilots because doing so presents the risk of yet another licensing demand. Ever heard the story about the “estate” of Chuck Yeager? His heirs have successfully demanded licensing of any kit bearing his name on the airplane.

“Say goodbye to the hobby we once knew.”

Reprinted with permission of IPMS Canada