Lionel, train rival MTH near suit settlement
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COLUMBIA, MD. — The nation’s two largest makers of toy trains are nearing a conclusion to a 7-year-old, multimillion-dollar lawsuit.
Columbia-based MTH Electric Trains had sued Lionel, a century-old brand, accusing it of stealing train designs through a Korean subcontractor.
The dispute has focused on patented computer technology that synchronizes a train set’s sound, smoke and speed, crucial technology in their small but competitive market.
“We’re happy that we’ve reached a settlement,” said Jerry Calabrese, chief executive of Lionel, based in Chesterfield, Mich. “It was a long, terrible case.”
However, MTH founder Mike Wolf said the settlement was contingent on resolving several outstanding issues.
“It’s not over until it’s over,” Wolf said. “We don’t like each other. It’s personal. It’s been very difficult.”
The accord includes a cash payment from Lionel to MTH and an agreement on future technology uses, but the companies agreed not to reveal details.
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