Xm Studios Selling Restrictions.

[Josh-A-Tron]

I would be absolutely shocked if XM signed this licensing agreement with Marvel and did not have attorneys review the documents.

IMHO...it would not surprise me if there was always language in that original agreement that basically stated XM products cannot be sold outside of these pre-defined territories. Secondly I would not be shocked if XM's owners felt they were adhering to the terms of the agreement by making sure any customer who placed an order on their website have an address within the aforementioned pre-determined sales territories. However, it would not surprise me if there was specific language in the agreement which stated XM will not allow their retailers or distributors to sell their product outside the pre-determined sales territories. That last part is what many new business owners either fail to realize or simply forget. Your partners have to essentially adhere to the same restrictions...or at the very least, XM cannot sell their product to partners who they know are willingly violating the terms of their licensing agreement.

From a collector's perspective, I respect the fact this whole situation has soured you on Sideshow. But I have to be perfectly honest, from a business perspective I feel differently. If I were a member of Sideshow management, and I knew XM was violating their licensing agreement, I would have contacted Marvel personally. One of the standard rules of thumb in business is to protect your revenue stream. Sideshow is paying for the rights to distribute all Marvel 1/4 scale product in the US...there is no way I am going to allow XM to play in the US arena for free.

This^ SSC paid licensing fees to have an exclusive territory to sell their products, North America, if I pay extra to legally make sure something doesn't happen and it does not only do I have the right have it stopped but I could go after the company that broke the agreement for losses.

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[bicoid18]

The only way I can see XM Marvel products being available globally is if they get the licence for something like 1:3 scale statues and 1:6 scale dioramas. Sideshow could then theoretically be a worldwide distributor. SS gets a piece of the pie and XM can continue to grow and branch out without really canabalizing SS 1:4 market.

 

[CallMeTheDoctor]

It did strike me odd that XM was pulled on X-Men and SS is still cranking em out.

 

[traylorc]

It did strike me odd that XM was pulled on X-Men and SS is still cranking em out.

This could be a simple timing issue...SS could have had discussions with Marvel months ago regarding all X-men projects in their pipeline. Obviously SS received approval to continue with their projects. We cannot forget that these projects are planned months, even years, in advance.

Before anyone complains that Marvel is treating XM unfairly....I seem to remember a few months ago the folks from XM posted comments about having discussion with Marvel in order for their Wolverine and Phoenix projects to proceed. Marvel has evidently allowed XM to release both projects.

 

[Shai]

Never liked their product anyway. They are just a pale copy of Sidehow's.

 

[Silverine]

Never liked their product anyway. They are just a pale copy of Sidehow's.

Hope your joking

 

[hockeyflow33]

Never liked their product anyway. They are just a pale copy of Sidehow's.

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[comicbookguy]

They probably did have an attorney look at the contract, but dude, this is Disney and XM is probably terrified of having the entire Marvel licence pulled from them period. If XM only paid for distribution rights in Asia, but is shipping worldwide underhandedly, Disney is going to crush that.
I definitely think that Sideshow helped make this happen. Sideshow is paying a massive license fee for worldwide distribution, XM isnt. Sideshow's product, particularly Marvel, has been on steady decline while their prices & ES have gone up. Sideshow was also very comfortable having a virtual Marvel monopoly on 1/4th. I am pretty sure Sideshow contacted Disney to point out XM products on US webpages and then complain about this worldwide distribution. The only thing that seems unfair to me is the restriction on 2nd party stores in Asia being forbidden as well.

Color me selfish, but once I have Phoenix in my hand I think I am done with 1/4 scale (unless a Byrne Cyclops comes out).

Wow, just saw this thread. XM was becoming a beast. Looks like someone wants them gone. How about the XM SW line? Can the usa buyers get them? SW is own by disney as well.

 

[mistermark]

Wow, just saw this thread. XM was becoming a beast. Looks like someone wants them gone. How about the XM SW line? Can the usa buyers get them?

This only makes me want to support XM more. I hate when big companies bully smaller up and coming companies and try to stop them from growing. Clearly, if XM wasn't a threat to Sideshow no one would care where they're selling. Sadly, this is not the case. I hope someone starts a forwarding company in Singapore so that we can order and still get these awsome statues. I have faith that someone will do it sooner than later.

 

[hockeyflow33]

This only makes me want to support XM more. I hate when big companies bully smaller up and coming companies and try to stop them from growing. Clearly, if XM wasn't a threat to Sideshow no one would care where they're selling. Sadly, this is not the case. I hope someone starts a forwarding company in Singapore so that we can order and still get these awsome statues. I have faith that someone will do it sooner than later.

Enforcing carefully negotiated contract provisions isn't bullying. This has nothing to do with being mean to someone, it's business and every company dealing with these goods has restrictions on where they can sell and what they're selling.


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[-jay-]

Hope your joking

NO he's not joking. I see him post the same **** on FB.

 

[Tbolt]

This only makes me want to support XM more. I hate when big companies bully smaller up and coming companies and try to stop them from growing. Clearly, if XM wasn't a threat to Sideshow no one would care where they're selling. Sadly, this is not the case. I hope someone starts a forwarding company in Singapore so that we can order and still get these awsome statues. I have faith that someone will do it sooner than later.

Geez you sound like a whiny little girl. XM did not pay for, nor do they have the rights to sell in areas outside what they did pay for/negotiate. They have been doing it while everyone turned a blind eye. That is not how this works, and all you need to do is go look at the SYCO thread on SF to see why. But being partial to them, you seem to want them to have this blanket exception that gives them a competitive edge over everyone else for free. Sorry, that is not how the world works.

 

[c11098]

Enforcing carefully negotiated contract provisions isn't bullying. This has nothing to do with being mean to someone, it's business and every company dealing with these goods has restrictions on where they can sell and what they're selling.


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I agree XM needs to learn this the hard way. Fans will be disappointed and XM should learn that being a company, there are many things other than providing good products. I just wish XM can concentrate more on their work and less on this kind of fuss; but this happens, only when fans are being cooperative and understanding. Yes it is hard, because we are customers, but I believe in relationship rather than just instrumental values.

 

[Silverine]

NO he's not joking. I see him post the same **** on FB.

Dear god thats bad

 

[Grumpy Bear]

 

[El Mule]

Geez you sound like a whiny little girl. XM did not pay for, nor do they have the rights to sell in areas outside what they did pay for/negotiate. They have been doing it while everyone turned a blind eye. That is not how this works, and all you need to do is go look at the SYCO thread on SF to see why. But being partial to them, you seem to want them to have this blanket exception that gives them a competitive edge over everyone else for free. Sorry, that is not how the world works.

Oh please. This is nowhere near Syco's level.
Syco produced a Marvel statue without having the Marvel license, and based it on a sculpt they literally stole from an artist.
And while we are at it, Marvel shut down Syco even before that statue went into production. XM pieces have been shipped around for a year now, that's what is striking as odd. You're implying that XM's retailers have been violating licensing clausoles all this time, but that's not something we know for sure. For what we know, Disney might have added that restriction only now, either because Sideshow suggested it or as a clausole for the renewal fo XM's current license, for example.

Then again, you're right. XM must do what they are allowed to do and nothing more. They're in the business to make statues so they should focus on that and not on what people outside of the licensed areas might want - so those who want XM pieces in the US, now can either shell out 2000$ on Ebay or stick to Sideshow.

 

[sarakawa]

Yea it sucks but I have no ill will towards SSC. And XM will be FINE. This isn't going to affect their bottom line. It's just collectors outside of their region that have to pay more and try harder to get XM stuff.

 

[El Mule]

Yup. A lot of people out there liked to play the fox and grape game, wishing for XM to fail because they think everything is about USA and american market. And since they had no easy way to get them, they wanted to see XM fail.
XM is selling out all of their statues, in their areas. They don't need the US market. Black Bolt sold out in what, 2 minutes, on their website? "Worst case scenario" they'll have 100 or 200 more pieces to be sold directly on their site (ergo, more money to them) and they'll sell out in 10 minutes instead of 2.
Sure, an open door on the US market goes a long way, but Marvel is not the only license around either. Many untapped spots in this market and many licenses that don't imply companies kicking the s--t out of each other for territorial clausoles.

 

[PeepsChicken]

Yup. A lot of people out there liked to play the fox and grape game, wishing for XM to fail because they think everything is about USA and american market. And since they had no easy way to get them, they wanted to see XM fail.
XM is selling out all of their statues, in their areas. They don't need the US market. Black Bolt sold out in what, 2 minutes, on their website? "Worst case scenario" they'll have 100 or 200 more pieces to be sold directly on their site (ergo, more money to them) and they'll sell out in 10 minutes instead of 2.
Sure, an open door on the US market goes a long way, but Marvel is not the only license around either. Many untapped spots in this market and many licenses that don't imply companies kicking the s--t out of each other for territorial clausoles.

Not that I disagree (I do think XM will likely be fine), but it's worth pointing out that all the fast sell outs like Black Bolt have occured with the demand induced by the North American market, not in the absence of it. A goodly chunk of those pieces that sold out were bought from XM with the intent for resale in NA, whether through official channels like ST, middle men (or channels that utilized middle men like BBTS or Secret Compass), or direct flippers.

It simply has yet to be seen how the absence of the NA market will affect sales. Even now with the new restrictions, NA market demand will still drive some of the sales via proxy (eg. Scalpers). There's a reason SS is being so vigilant about protecting its monopoly on the NA market... it's a cash cow.

 

[El Mule]

Not that I disagree (I do think XM will likely be fine), but it's worth pointing out that all the fast sell outs like Black Bolt have occured with the demand induced by the North American market, not in the absence of it. A goodly chunk of those pieces that sold out were bought from XM with the intent for resale in NA, whether through official channels like ST, middle men (or channels that utilized middle men like BBTS or Secret Compass), or direct flippers.

It simply has yet to be seen how the absence of the NA market will affect sales. Even now with the new restrictions, NA market demand will still drive some of the sales via proxy (eg. Scalpers). There's a reason SS is being so vigilant about protecting its monopoly on the NA market... it's a cash cow.

I partially agree with you. Americans have deep pockets, and this new restriction only implies that the richest ones will prevail over the others. Nothing else will change for XM. I think that at this point the US market is not *that* relevant to them, because their quality is, so to say, certified. They have a good number of releases and the hype went through the roof. Other than those 4 asian countries, they have the european distributor and I think they're trying to strike a deal for China and Hong Kong. It may not be a market like the US one, but that's a pretty big market anyway - and they only need up to 999 sales to sell out, let's keep this in mind. I recall that back when they were still starting, they said they needed at least 400 pieces sold to start having a profit.
With this hobby being bigger than ever and superheroes more popular than ever, I can see the US market being less and less relevant to them, at least for the Marvel license. Now, for other licenses where they might want to increase the ES, it may be different.