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Loosely translated:


Märklin and "Silvergate" (LGBoA) reached an unexpected agreement today whereby all marketing and licensing rights related to LGB in the United States are now owned by Märklin effective immediately.


This opens the North-American market for Märklin to allow unrestricted sales and distribution of the LGB product.



Published in Germany by "FERPRESS - Internationale Eisenbahn-Presse-Vereinigung"

Völlig überraschend haben sich die beiden bisherigen Kontrahenten Märklin, Göppingen, und die amerikanische Firma "Silvergate", früher besser bekannt unter "LGB of America", geeinigt. Ab sofort gehören alle Namensrechte, Lizenzen etc., die mit LGB in den USA zu tun haben, endgültig zu Märklin.

Damit ist der Weg nach langen vergeblichen Bemühungen für Märklin frei für einen unbeschränkten LGB-Vertrieb in Nordamerika. Dieser Überseemarkt ist für die internationale Gartenbahnszene sehr wichtig, da allein schon wegen der dortigen besseren klimatischen Verhältnisse mehr Möglichkeiten bestehen, das Modellbahnhobby auch im Freien zu betreiben.
 

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What a surprise! There is nothing posted yet on this on the Silvergate web site, http://silvergatedistributors.com . Has anyone found any more information on what happened? Did LGBoA get paid off finally or just give up?

There was a hint recently on the LGB Family Forum that something might be happening, but who would have thought?
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

Already a nice cozy little Firestorm going on at LSC
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

Not really too much of a surprise. Look what the U.S. economy is doing...they were probably wise to settle, cut their losses and put the money to work elsewhere.
 

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I don't have a membership at LSC. Is there any actual information posted there? Or is it just the usual complaining about LGB?
 

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Sorry, I was thinking of that other web site that charges. Thanks for the link. You are right about there not being much there. And they are not very friendly to each other. Now I remember why I never read their forums.
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

I just looked at the "site that charges"

Absolutely nothing there about the Märklin/Silvergate agreement that I could find.

The last posts in their workshop forum are about the record attempt to get into the Guinness Book of World Records for the World's longest train. Tried the second time this past weekend and also Monday and still failed. They will try again this coming weekend.
 

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A point of fact- If there was a deal (and I don't know) it was between the current owner of the LGB of America name and Marklin. Silvergate distributors has absolutely nothing to do with it and is not connected to the situation in any way.
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

I figured Silvergate had severed all its ties to LGB a while ago when the announcement to be Piko's distributor was announced. As I said elsewhere, thsi agreement just means Marklin got those US distribution and namesake rights that were so in contention not too long ago on this very forum. The fact that this annoucement didnt comeabout as the result of a protracted lawsuit says alot about where those rights must have been all along.

Now that said I'll repeat what I said on LSC, so Marklin has the US distribution rights? Given that they have such a "huge presence" here already, I await to see what trickles across the waters to the US, and just who will distribute it, Walthers has been mentioned as already distributing thier smaller scales, as it is, with the prices so far listed in Europe, that would effectively kill LGB for me and likely many others. Way back when all this started, I channeled the ghost of the Amazing Criswell who predicted LGB would become a high priced, hard to find beautique brand, like Brawa or Kiss, Criswell still predicts this to be true...

 

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Hi Jack-

I'm confused. I was under the impression that Stephan Jakob and Tony Castellano owned G45, which holds LGBoA, Silvergate Manufacturing, and Silvergate Distributors. LGBoA held the US distribution rights for LGB. LGBoA and Silvergate are separate companies, both sharing the same ownership.
Is this still correct? (I understand you may not be able to answer, but I would appreciate a clarification.)

Best regards,
Bob
 

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Bob,

I am not intimately involved in this but as far as I know Silvergate Distributors has no affiliation to G45 or LGB of America.
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

Hi Jack-

Thanks for the reply.

Best regards,
Bob
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

I am not intimately involved in this but as far as I know Silvergate Distributors has no affiliation to G45 or LGB of America.


As hard as I find that hard to believe, I do understand that that has to be the official line if Silvergate ever hopes to negotiate with Marklin on distribution of their products. When the whole LGBoA/Silvergate split happened, I had assumed that was done to open the door for negotiations with Marklin, just as it did with Peco. As usual, time will tell....
 

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Posted By Cougar Rock Rail on 10/15/2008 10:53 AM
.... if Silvergate ever hopes to negotiate with Marklin on distribution of their products. When the whole LGBoA/Silvergate split happened, I had assumed that was done to open the door for negotiations with Marklin, just as it did with Peco. As usual, time will tell....


It's possible to sit on one's thumbs and still open doors at Märklin. They are now on their third management team. So far, it seems to be possible to negotiate with new people every few months. Could be a good thing for N.A. distribution.
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

Cougar Rock Rail,

You think our system is in bad shape, you need to check out Europe.. Marklin is owned by Kingsbridge Capitol who is owned by Goldman Sachs.. We just bailed out Goldman Sachs, hope there is enough trickle down money for Marklin.. Plus as Vic says they have almost no presence in the states & with Walthers as there distributor, IMHO I think they are in for a very shakie ride.. But time will tell..

BulletBob
 

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BB, don't even get me started on Goldman Sachs and the rest of those greedy ba$%&@#d -they should all be thrown in jail as far as I'm concerned. You're right, though, for whoever takes over it's going to be a rocky ride.

As far as distribution, my preference would sure be to stick with LGBoA/Silvergate, since they have the support expertise, dealership network (with largescale experience that is) and better pricing than someone like Walthers would ever have.
In a perfect world for me, it would be:

LGB/Marklin- producing 1:22.5 RhB & other Euro narrow gauge trains only
Piko - producing standard gauge European trains only
LGBoA - producing modern N/A standard gauge prototypes like the Genesis/Amtrak cars
Silvergate - distributing all of above plus others such as Kiss

Keith
 

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I disagree Walthers is great and has the money to keep stock onhand ......

we have been a dealer for them for 16 years with 2 orders a week and the whole system works like clockwork ......

problems are fixed right away and they are always nice to talk to .........
 

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RE: Märklin and Silvergate (LGBoA) reach agreement re US marketing rights of LGB

I think Walthers is used to having plenty of control, especially on keeping the prices up! There is no way (I guess 'never say never') that they could sustain the kinds of markups they're used to in this day and age of the internet. A big part of why LGBoA survived as long as they did with LGB was their reputation for exemplary service, repairs and support. I can't see Walthers putting out that kind of effort, not in the repair department. Largescale is a different animal than small "easy-to-ship-back-a-problem-loco-to-the-manufacturer-and-backcharge-them" trains. Now that being said, I wouldn't be surprised to see Marklin fall spell to their marketing bravado and have them fall flat on their face after a year or so when consumers get fed up with high prices and little support.
 
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