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| TALKING POINTS ON THE "MILITARY TOY REPLICA ACT" |
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| Congressman Andrews' Bill would require the Department of Defense to include a provision in their contracts with all defense contractors prohibiting them from requiring licenses and fees from businesses that manufacture, distribute or sell models and model kits. These contractors have approached manufacturers and distributors within the hobby industry, pressuring them to sign licensing agreements and pay fees for the use of military designations and likenesses. The designations for military vehicles (such as "F-16") are determined via a system established by the Department of Defense and the designs are implemented through the use of taxpayer funds. In previous agreements, the contractors have sought 2-8% of the costs of each unit from manufacturers. On a typical $8 model kit, this amounts to about 40 cents, which, when multiplied over 15,000 units, equals $6000. This increased cost, which is necessarily passed on to the consumer, is negligible to these multi-billion dollar corporations, but it is enough, when marked up to a retail price, to drive down demand and put small "mom & pop" hobby and toy shops in jeopardy. My customers are veterans, people proud of their country, and young people who are interested in military subjects. For example, when the Blue Angels perform at local air shows, interest in the military increases, and sales of the performing aircraft increase along with it. This is a recruitment tool and should not be burdened by royalties and fees. Model kits are an inexpensive hobby and free advertising for the Department of Defense. This Bill does not amend trademark law, rather it adds a new requirement to Department of Defense contracts to ensure that the model industry is not eliminated. |
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