Xm Studios Selling Restrictions.

[-jay-]

Agreed. If nothing else, they can always go back to recasting SSC pieces and selling them on the black market.

That would be great. We might get a SSC statue with good paint then. Ooooh

 

[sarakawa]

That would be great. We might get a SSC statue with good paint then. Ooooh

ZING!

 

[Grumpy Bear]

Agreed. If nothing else, they can always go back to recasting SSC pieces and selling them on the black market.

Sounds great, i have so many pieces that i want in good quality.

 

[yodasan]

You guys obviously do not know Shai.

The Worm has returned?

 

[Darth Snoopy]

I know right

Agreed. If nothing else, they can always go back to recasting SSC pieces and selling them on the black market.

​

That would be great. We might get a SSC statue with good paint then. Ooooh

​

The Worm has returned?

Indeed he has!

 

[AC_808]

That would be great. We might get a SSC statue with good paint then. Ooooh

ZING!

Bazinga!!

 

[dino76m]

Dino...I am familiar with freight forwarding services. The question that I would have is this.... Would the use of Frieght Forwarding services allow XM to remain in compliance with the terms of the licensing agreement?

Many of these licensing agreements contain language that states the the end user or customer needs to have an address in one of the pre-defined sales territories. The Fright Forwarding company would not be considered the end user...they simply transport the goods. If there were a middle man receiving the shipment from the freight forwarding company whose address is within the pre-defined sales territory that would be okay. Assuming the middle man sold to customers within the aforementioned sales territories. But if that middle man, then turns around sells directly to customers in the US...then I believe you still have a problem. It becomes a huge problem for XM if Marvel believes they are using Frieght Forwarding services as a way to circumvent the terms of the licensing agreement. At the end of the day, there is no way Marvel will allow XM to circumvent the agreement. And there is no way Sideshow will accept XM being able to sell their products in the states for free when they have to pay a handsome fee for that privilege.

Perhaps I am misunderstanding your point...if that is the case I apologize in advance.

sideshow cant sell Hot toys or prime 1 products to Asia, but their prices for exclusives are much better than asian resellers that I wanted to buy some prime 1 products, so SS themselves suggested Freight forwarding to me, if they can do that why cant XM do it, thats what Im asking, unless XM doesnt want to do that

 

[traylorc]

sideshow cant sell Hot toys or prime 1 products to Asia, but their prices for exclusives are much better than asian resellers that I wanted to buy some prime 1 products, so SS themselves suggested Freight forwarding to me, if they can do that why cant XM do it, thats what Im asking, unless XM doesnt want to do that

Thanks for clarifying...I hope my comments did not offend you.

I must admit, it does make me wonder if the Sideshow representative who recommended the use Frieght Forwarding understands the potential consequences of their actions? I would be curious what a representative of Prime 1 or Hot Toys would say regarding the Sideshow representatives actions were appropriate. Maybe they are...maybe my personal experience with Freight Forwarding services is not applicable to this situation. Just thinking out loud...

This could also be a situation where behind closed doors Marvel representatives made it perfectly clear that XM was not to condone, or engage, or participate in any additional activities that violate their current agreement. If I am a member of XM Management team, I do not risk doing anything that would potential jeopardize my relationship with Marvel. Just as important, I do not risk jeopardizing any ongoing negotiations with other licencors.

 

[Grumpy Bear]

XM statement from Bryan:

Hey guys, sorry for the radio silence I usually try to reply quite regularly but have been away in London and Paris last 10 days or so on a backpack no mobile phones, no internet cleansing journey. I am doing a break because as some of you may know, I've kinda quit my day job and will be helping XM more - (2 days out of 5 per week not full time though). I have to say it was the toughest 10 days ever (have any of you tried 3 days without a phone??)

Anyways, let me try to share as much as I can on this whole distribution in approved countries thingee. I have to be careful of how I word things because I'm probably being monitored (like having red dots of light on my forehead! )

1. XM Studios has always stated from day one our selling and shipping restrictions. We wish it would change but it is unlikely to.
2. This restriction applies to our official distributors as well - otherwise it wouldn't be much of a restriction really.
3. Naturally, XM cannot encourage nor support such activities. Furthermore, the onus and accountability is on XM to prove we respect and play by the rules. If called upon, we may even need to conduct investigations down to every single invoice from all our distributors to provide a report how did a piece get sold out of the zones. (Hence freight forwarding as some have suggested, wouldn't work) Erm... Actually I'm not even supposed to comment on that. Please refrain from asking me if creative method XYZ works or if I know any unofficial individuals who can sell you stuff... It's not that I'm being rude or unsupportive but you know...
4. XM focuses on producing, designing and QC which is what we really set out to do - and frankly prefer to spend our time on. Make cool stuff, explore undiscovered talents, improve our crafts, hell, let's make this hobby exciting again. Legal stuff, Distribution, Flipping business, Middlemen aren't really things we have lots of time for and we try to avoid when we can as if they are stinky tofu. The boys take turns to fly to the factories every week. We check, inspect and throw stuff away that doesn't make the mark. We post stuff on Facebook to collect sentiments and opinions so we can improve our craft. So yeah, it was challenging to control and supervise distributors as well.
5. After overseas selling activities were brought to our attention, understandably we were reminded by our licensor that we have to be strict and vigilant with our distributors.
6. XM had to remind all official distributors to respect the distribution restrictions or we will be duty bound to terminate supplying them anymore products.
7. So yeah, it is true. Our official Distributors have to play by the rules too - if they have taken orders which they are not supposed to, they will have to resolve by transferring, refunding, cancelling etc depending on their policies but kindly understand why they have to do so.
8. If you feel you have been treated unfairly by any distributors, please get in touch with me and let me know. I will do my best to help within my capacity.

For those who may have missed out on why our products are pricier in EU, that because the costs (Tax and license) are also higher to clear in EU.

I'll be hanging around for awhile to help answer any questions - its about 3 am here but I have my coffee. (Or you can drop me a note at [email protected]) I'm quite swarmed with emails so please don't be upset if I take a lil while to respond.

 

[Darth Snoopy]

Thank you for posting that information, GB.

 

[Sweet Rabbit]

Gonna be really interesting if/when the invoices get pulled

 

[hockeyflow33]

As great as it is to be giving out information it seems somewhat disingenuous to say we make statues so what do we know about license agreements and distribution?
That's somewhat startling and to be honest, it seems untrue, I can't imagine you stumble in to a major license agreement with Marvel/Disney without having the proper people reviewing terms and conditions.


Sent from my iPhone using Tapatalk

 

[traylorc]

As great as it is to be giving out information it seems somewhat disingenuous to say we make statues so what do we know about license agreements and distribution?
That's somewhat startling and to be honest, it seems untrue, I can't imagine you stumble in to a major license agreement with Marvel/Disney without having the proper people reviewing terms and conditions.


Sent from my iPhone using Tapatalk

IMHO it's not disingenuous in the least...it's Bryan being very honest. Many business owners employee legal representation so that the attorneys can understand all the details. This happens frequently... Those owners have to understand...employing a legal team or representative to understand the legal language found in a licensing agreement is ok, but they need to have a basic understanding of the agreement themselves.

XM secures the contract with Marvel...they are not worried about suppliers or distributions not adhering to the terms of the agreement. They are caught up in the elation of scoring a major contract. They are caught up in determining their first Marvel 1/4 scale figure they are going to produce. They are caught up in determining what projects are going into the pipeline. They are caught up with the idea of developing a distribution chain or securing shipping discounts from Fedex or UPS.

Should they have a firm understanding of the agreement they just signed...hell yes. But most owner feel "they attorneys will tell us if we are doing anything to violate our agreement" and "the attorneys will handle all that legal stuff". For that to work, the attorneys need to know that suppliers and distributors are selling items directly to US customers. Unless XM management understands their own licensing agreement, they have nothing to tell the attorneys. And if XM management does not inform the attorneys of the violations...how are the attorneys suppose to competently advise management?

Unfortunately, this type of situation is very, very common. This one of the many reasons is why most new businesses fail...owners make mistakes because of lack of real world business experience. Owners don't know, what they don't know...and what they don't know makes them dangerous.

 

[nemenforcer]

Hence why I was saying legal representation is in their best interest. Good or bad if your playing with the big boys you need to protect your business. If XM was in he wrong they could have easily sufffered much more damage than a slap on the wrist

 

[Kibishii]

You guys obviouslydo not know Shai.

The Worm has returned?

I remember when every thread would have **** sex comments & 1/2 naked pictures of women from him...

Hence why I was saying legal representation is in their best interest. Good or bad if your playing with the big boys you need to protect your business. If XM was in he wrong they could have easily sufffered much more damage than a slap on the wrist

How much sweating are you doing that our orders for Phoenix are going to be cancelled?

 

[Darth Snoopy]

I remember when every thread would have **** sex comments & 1/2 naked pictures of women from him...

Ah, the good old days.

 

[yodasan]

Simply Toys just emailed me to say that they are not allowed to ship XM products to Europe, so this just gets better and better.

 

[yodasan]

Ah, the good old days.

Shai (and Bodie) should be in the SSF Hall of Fame by now.

 

[hockeyflow33]

IMHO it's not disingenuous in the least...it's Bryan being very honest. Many business owners employee legal representation so that the attorneys can understand all the details. This happens frequently... Those owners have to understand...employing a legal team or representative to understand the legal language found in a licensing agreement is ok, but they need to have a basic understanding of the agreement themselves.

XM secures the contract with Marvel...they are not worried about suppliers or distributions not adhering to the terms of the agreement. They are caught up in the elation of scoring a major contract. They are caught up in determining their first Marvel 1/4 scale figure they are going to produce. They are caught up in determining what projects are going into the pipeline. They are caught up with the idea of developing a distribution chain or securing shipping discounts from Fedex or UPS.

Should they have a firm understanding of the agreement they just signed...hell yes. But most owner feel "they attorneys will tell us if we are doing anything to violate our agreement" and "the attorneys will handle all that legal stuff". For that to work, the attorneys need to know that suppliers and distributors are selling items directly to US customers. Unless XM management understands their own licensing agreement, they have nothing to tell the attorneys. And if XM management does not inform the attorneys of the violations...how are the attorneys suppose to competently advise management?

Unfortunately, this type of situation is very, very common. This one of the many reasons is why most new businesses fail...owners make mistakes because of lack of real world business experience. Owners don't know, what they don't know...and what they don't know makes them dangerous.

This isn't some mom & pop restaurant, each statue's run is grossing $700k to $800k for XM. I think we're on the same page here so forgive me if I'm being argumentative, I'm super frustrated my Thanos is in jeopardy.

For XM to be grossing millions of US dollars already should equate to a certain level of professionalism and to pull out the rug from hundreds of customers due to their own ignorance or negligence is just plain unacceptable. Making it worse is that they and ST, SC and other retailers are telling those who purchased, "oh too bad, you'll be losing paypal fees". Regardless of what they're allowed to do, they certainly should be able to come up with an idea in-house to satisfy customers. Maybe XM sends you a tshirt, an art book, who knows but as a business person, you need to at least make an effort when you screw up.

 

[traylorc]

This isn't some mom & pop restaurant, each statue's run is grossing $700k to $800k for XM. I think we're on the same page here so forgive me if I'm being argumentative, I'm super frustrated my Thanos is in jeopardy.

For XM to be grossing millions of US dollars already should equate to a certain level of professionalism and to pull out the rug from hundreds of customers due to their own ignorance or negligence is just plain unacceptable. Making it worse is that they and ST, SC and other retailers are telling those who purchased, "oh too bad, you'll be losing paypal fees". Regardless of what they're allowed to do, they certainly should be able to come up with an idea in-house to satisfy customers. Maybe XM sends you a tshirt, an art book, who knows but as a business person, you need to at least make an effort when you screw up.

You are not being argumentative...we are both frustrated. I have 4-5 XM products outside of my XM order with Simply Toys that have been cancelled...which include Thanos.

That being said...we need to understand who is calling the shots here...it is not XM. Marvel is calling the shots. Marvel is the licencor, Marvel owns the creative material that is being licensed, Marvel crafted the agreement, and Marvel likely reminded XM they cannot sell product overseas. It is highly, highly doubtful that XM is currently calling the shots on how this is being handled. XM is reacting to the situation, and more importantly, XM is doing everything possible to appease Marvel and hold on to the license. License agreements have language that state if the licensee violates the terms of the agreement....the licencor has the option to cancel the license.

In every licensing situation the Licencor is in complete control...period. It's easier for Marvel to find another XM than it is for XM to find a replacement for revenues associated with the Marvel license. As you mentioned yourself, XM has likely done very well with Marvel products. What does their income statement look like for the rest of 2015 and beyond if they lose the Marvel license? So when Marvel tells XM (and XM tells their respective suppliers & distributors) that they will immediately cease and desist from selling Marvel 1/4 scale products to US customers...what is XM suppose to do? Marvel is not going to be sympathetic, as far as they are concerned XM is a rogue licensee who felt they did not have adhere to the terms of the original agreement. XM is already generated revenues they were not suppose to have...is it realistic to expect that XM management can tell Marvel "I know we have not honored the terms of our agreement, and we pissed off other licensees who paid a fee to sell Marvel products in the US...but can we just honor these final existing orders? In other words, can we shamelessly continue to violate the agreement for just a few more months...then we will honor the agreement?"

At the end of the day...this is an extremely frustrating situation for many XM collectors.