Lionel Files Bankruptcy...

Discussion in 'Getting Started' started by tuta, Nov 17, 2004.

  1. tuta

    tuta New Member

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    so who exactly did they steal designs from?

    And why would only a $41M judgment force them to file -- surely they have done better than that over time?

    [​IMG]
  2. 60103

    60103 Pooh Bah

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    The offended party was MTH or Mike's Train House. Lionel had some locomotives produced by the same company in the far east that was producing them for MTH.
    Myself, I can't imagine that any train company, even Lionel, does that much business.
  3. tuta

    tuta New Member

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  4. spitfire

    spitfire Active Member

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    Just came from the online chat with Lionel CEO Jerry Calabrese. Lionel is filing for bankruptcy protection, to allow them to raise money and mount an appeal. The question was asked "what if you lose the appeal?" and his answer was that it would make things difficult but that they were not about to be taken over by any other train company.
    So I guess they have pretty deep pockets!

    Val
  5. Russ Bellinis

    Russ Bellinis Active Member

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    Lionel copied some of MTH's electronics in violation of MTH's patents. The amount of business one does really doesn't have a lot to do with penalties for patent infringement. A friend at my local hobby shop noticed that MTH had lionel beat by a long shot, and suddenly Lionel has the same electronics as MTH.