Regarding the assumption of "25 years of liability," and without offering
legal advice, one would assume that if a company wanted to buy the rights to
sell the plans to the KR series, and to build kits to these plans, the
company would not "buy" Rand-Robinson Engineering, but would instead buy
intellectual property (consisting of the plans) under the aegis of a new
company. This company--to my mind, and without researching the issue--would
not be assuming any liability for previously sold kits and plans, since
there would be no connection between RR and the new company except as vendor
and buyer of the IP rights. Of course, the new company would have liability
for its own negligence in selling the plans, but this cannot be avoided in
any case, regardless of their source.

Regarding the similarities between the "original" KR aircraft and any
aircraft sold by the new company, I would further assume that the new
company would do its own research and testing, and would draw from the 25
years of experience that KR builders now have. This would almost certainly
result in at least some changes to the original plans, an opinion reinforced
by the many successful modifications that builders have made to these plans.
The changes would probably be incremental rather than fundamental, but they
may well result in a craft different-enough from the original KR's that it
could be marketed under a new name, as has been noted in previous posts.

With all that said, and with the understanding that RR may still be
overvaluing its property, I believe that a viable aircraft project could be
undertaken with the KR as its basis. RR should remember that it would not
take much modification for the new company to be able successfully to defend
itself against an IP suit. If RR really did want to sell the rights to the
plans, it should negotiate accordingly.

Max Hardberger
Admitted in California Only

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