How A Press Release Destroyed K-Line Trains

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How did K-Line rise from obscurity to a major power in the world of toy trains, and how did K-Line fall so quickly and so dramatically into oblivion? Here’s the story:
By the dawn of 2005, K-Line’s future looked bright indeed. Their product line spanned the gamut from scale models of classic steam and contemporary SD70 diesels, to innovative accessories like the Super Streets line, to budget products like the under $50 Husky line of Geeps and the well-built but budget-priced Train 19 line of rolling stock aimed at the starter market.
But it would soon come crashing down.
“Under the terms of the settlement, K-Line and the other defendants, Maury Klein and Robert Grubba, admitted that they paid Lionel’s chief engineer to develop advanced versions of Lionel’s operating systems and features that were used in a number of K-Line’s engines and electrical transformers. They further admitted that these products actually contain Lionel’s technology and are currently for sale in the marketplace.
“In late July, Lionel filed a complaint…against K-Line, its owner Maury Klein and Robert Grubba, a former Lionel employee now working for K-Line. The…train maker claimed that the defendants had enlisted Marty Pierson, then Lionel’s employee and chief engineer, to work surreptitiously with K-Line, and incorporate Lionel’s current sound, speed control and electrical transformers into some of the K-Line products.”
The statement pulled no punches in assigning blame squarely on the shoulders of K-Line and its owner. They had cheated and had been caught.
K-Line’s public statement announcing the settlement told a different story altogether. They wrote in part, “While K-LINE hired as an outside consultant a Lionel engineer…he was not hired to develop advances on Lionel technology, but to create superior alternatives. For example, K-LINE's Cruise Control is not related in any way to Lionel's Odyssey System.
The sound and speed control products were developed by Marty Pierson in collaboration with K-LINE engineers. However, certain agreements he signed as a Lionel employee gave Lionel a claim of ownership of this work.”
K-Line flatly denied all guilt in the matter and argued that Lionel was winning the case by a technicality only. This was a monumental mistake.
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Handy Links:
Complete Service Manual for Lionel Trains: amzn.to/3Lfd0zn
Williams by Bachmann E-Z Street System: amzn.to/3r65f84
O'Brien's Collecting Toy Trains: Identification And Value Guide: amzn.to/489N5mj
Toy Train Tips And Tricks is a channel devoted to the operation, repair, history, and collecting of classic 3-rail O and O27 gauge trains made by Lionel, Marx, K-Line, Menards, and other manufacturers.
Keep the trains running!
Music and Visual Effects Courtesy of Pixabay.com
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Twitter: / ttttmike
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#Promotion #Lioneltrains #Trainset #Trainrepair #Traincollecting #Ogauge #Oscale

Опубликовано:

8 сен 2023

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Комментарии : 292

@ToyTrainTipsAndTricks

Lionel Santa Fe Super Chief Set

@overlordofmars

The lack of options and affordability are killing the hobby. Every year there are fewer hobby or train stores out there. It has gotten to the point where buying new has become to expensive and something major retailers do not want to touch.

@rehabmax

All these companies were suing each other while sales were falling off a cliff.

@GP30RDMT

20+ years ago, Bob Grubba was a guest at a train club dinner I was at with my dad. On his way out the door, he gifted me his raffle ticket. At the end of the evening, they raffled off door prizes and the ticket he handed me won a Lionel ACL GP7 with TMCC. Nice video.

@jodysmith8048

To me it was all a way for the beginning of Lionel being the current monopoly they are today in the O gauge and O scale market just like how Lionel bought up the majority of the MTH tooling when ATLAS openly stated they wished they could have bought more of the MTH tooling

@johnblair8146

K-line stuff was better than LionCheap.

@OriginalBongoliath

Now Robert "Bob" Grubba runs Broadway Limited doing HO and N Scale trains. Funny how people move around the model train industry.

@huntercoleman460

Even though I’ve always viewed K Line as a dollar store version of Lionel, it’s still a shame what happened to them. Thanks for the history of K Line Mike.

@pianomikeoct

Lionel is not that great of train maker , they are over priced and shame on them for ruining K-Line! Lionel got rid of the 027 track, that was plain stupid!

@danshobbies13

I’d like to see American Flyer owned by another company. Lionel is not doing a good job with the S scale line. I’d rather have Athearn, Walthers, or Atlas own American Flyer.

@machetepanda966

I’ve always hated Lionel. They just seem careless as a company (out for only the money, not the hobby) and are a major reason I stayed out of 3-rail.

@lordofthestings

It's crazy that Lionel was being sued by another company at the same time for the same thing

@jackcurran1122

K-line had some very nice products, their diecast hoppers were among the best made

@markhedges2538

It really is crazy (and sad) what went down in the toy train market in the mid 2000’s. Would make a good documentary

@joeystrains.9316

Excellent video! Never knew the story but not surprised. Lionel is the tuff dude on the block. Hopefully, Menards will continue to make entry level trains successfully.

@MustangsTrainsMowers

I was building another layout in 2005 and started looking for 027 profile 42” switches. The powered Lionel versions commonly had problems so through Ebay I bought some K-Line versions and really liked them. I bought more, probably have close to 20 of them.

@wayneantoniazzi2706

A VERY interesting history of K-Line! Yes, it's a shame they're not around anymore but I guess in a way it proves the veracity of the statement "Sometimes the seeds of failure can be found in the fruits of success." It strikes me K-Line got just a little too ambitious to the point their reach exceeded their grasp. In my opinion the best thing to do is when you find a comfortable niche market is just stay there. What a loss to the hobby.

@MikeSmith-rh5gc

Always was a fan of the HO scale. Not too big, not to small. I miss my trains 😢

@warrenwilson4818

Thanks for the fascinating and well-produced upload. I'm almost 80. Back in the day I had some Lionel 027 items. We were very poor but for Christmas I was given new things like the beautiful rotating beacon light and a gorgeous large grain car. Mar. 22, 2024. St. Joseph, MO, USA.

@asteroidrules

My dad and I were big fans of K Line cars, track, and accessories, usually just as good as the Lionel stuff but a significantly lower price. It's a shame that they imploded so hard, although I still find new old stock of theirs at hobby shops and online.