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No reason for brand wars   
Wednesday, February 06 2008 @ 06:17 PM CST
By David L. Farquhar

On one of the train forums I frequent, a legitimate question quickly degenerated into brand wars. And brand wars are one thing, but when people hold their preferred company to a different standard than the other company--in other words, one company is evil because it does something, but their preferred company does the same thing, it isn't productive.

Actually, I see very little reason for brand loyalty as it is. I drive a Honda and I use a Compaq computer. Do either of those companies have any loyalty to me? No. To them, I'm just a source of income from yesterday.

I don't like the categorization of companies as "good" and "evil." Companies don't exist to be good or evil. Companies exist for one reason: Make money. And one thing to remember is that companies will always do exactly what they think they can get away with.

In the case of the toy train wars, the two antagonists are Lionel and MTH. MTH is a scrappy underdog that got its start building trains as a subcontractor for Lionel. A business deal went bad--in short, Lionel left MTH high and dry on a multimillion dollar project, so MTH decided to go on its own and sell the product Lionel decided it didn't want, but Lionel didn't like the idea of one of its subcontractors competing with it while also making product for them, and understandably so.

MTH and Lionel have been mortal enemies ever since.

A few years ago, MTH accused Lionel of stealing trade secrets. The specifics are difficult to sort out, but someone with intimate knowledge of some of MTH's products started designing equivalent products for Lionel. MTH sued and won, to the tune of $40 million. The case is now in appeal.

There's no question that Lionel benefited from this contractor's knowledge of the competing product. The question is who knew this was going on, who authorized it, and what an appropriate punishment would be. The only people who are questioning guilt have blinders on. There is no innocence here--just possible degrees of guilt. The other question is appropriateness. Lionel doesn't have $40 million in the bank. Arguably the company isn't worth a lot more than $40 million. So that $40 million judgment is essentially the corporate death penalty.

MTH is anything but perfect and holy, however. The thing that bothers me most about MTH is its attempt to patent elements of DCC (Digital Command Control), a method for automating train layouts. It's an open industry standard, widely used by HO and N scale hobbyists. So MTH was seeking to collect royalties on something that's supposed to be free for everyone to use. That's a particular pet peeve of mine, and it's the reason I haven't bought any MTH products since 2003.

I came close to relenting this weekend though, when I saw some people bashing MTH while holding Lionel up as some kind of perfect, holy standard. It made me want to go buy a bunch of MTH gear, photograph myself with it, and post it on some forums so I could watch these guys have a stroke about it. Fortunately for them, I have better things to do with $200 right now. I also looked on my layout, and I don't know where I could put the things I would have considered buying.

I'm more familiar with the computer industry than I am with anything else, and if you mention any computer company, I can probably think of something they did that would fit most people's definition of evil. HP? Print cartridges that lie about being empty. Lexmark? Same thing, plus using the DMCA to keep you from refilling them. Dell? Nonstandard pinouts on power supplies that look standard, but blow up your motherboard if you try to use non-Dell equipment. IBM? Microchannel. Microsoft? Don't get me started. Apple? Lying in ads.

As far as I'm concerned though, the most evil company of all is Disney. Disney, of all people? Yes. Disney is the main reason for the many complicated rewrites of copyright law that we've had in recent decades. Whenever something Disney values might fall into the public domain, Disney buys enough congressmen to get the laws changed. Never mind that early in its history, Disney exploited the public domain for its gain as much as anyone (which was its legal right), even to the point of waiting for The Jungle Book to fall into the public domain before making the movie, in order to avoid paying royalties to Rudyard Kipling. The problem is that now that Disney is the biggest kid on the block, it's changing the rules it used to get there, so that nobody else can do it.

Unfortunately I've even seen not-for-profit corporations, companies that exist mostly to give away money, do dishonest things and essentially steal. If a charity can and will do these things, you can be certain that a for-profit corporation will.

So I don't see any reason for brand loyalty, aside from liking a product. If you buy a company's products and you like them, fine. Keep buying them. But that doesn't make the people who prefer a competitor's product evil. They didn't sign off on the decisions, and your favorite company has done its own share of underhanded things too, whether you know it or not.

And there's certainly no reason to go to war for your company of choice. It wouldn't do the same for you.

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