Colt's Royalties on AR-15 Sales: Debunking the Myth

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Introduction:

The myth that Colt continues to pay royalties to Armalite for AR-15 sales is a pervasive one. However, the truth reveals a different picture. Let's delve into the history and facts to understand the current state of affairs.

The Origin of the AR-15 Design

Armalite developed the AR-15 design in the 1950s. They patented the weapon, including the direct impingement action that is so iconic to the AR-15. In 1959, Armalite sold the rights to this design to Colt. This move marked the beginning of a long-term licensing agreement between the two entities.

Purchase and Patent Expiration

Colt did not purchase the rights to the AR-15 design outright in 1959. Instead, they secured a license from Armalite to manufacture and sell the AR-15. Since then, numerous other companies have joined the fray, each seeking to produce their own versions of the AR-15, commonly known as AR-15 variants or clones.

The direct impingement action patent expired in 1977, long before the widespread popularity of the AR-15. This expiration meant that other manufacturers could use the same design principles without infringing on Armalite's patent.

Current Landscape

Today, the AR-15 platform is owned and controlled by a consortium of companies, with Colt playing a significant role through its heritage and brand recognition. However, there is no current agreement for royalties from AR-15 sales to Armalite or any other entity.

Colt has the rights to the AR-15 platform but operates under a licensing agreement, not a royalty arrangement. This means that while terrorists and criminals sometimes use variants of the AR-15, legitimate manufacturers like Colt have moved on from the early licensing terms. Many 3rd party manufacturers now produce their own AR-15 variants without any royalties to Armalite.

Realities and Myths

Here are some points to consider regarding the AR-15 and the false claims of royalties:

Ownership: Colt did not purchase patent rights or obtain full ownership of the AR-15 design. Instead, they had a license agreement with Armalite. Patent Expiration: The direct impingement action patent expired in 1977, allowing other manufacturers to produce similar designs without legal repercussions. Legal Clarity: No current agreements exist for royalties from AR-15 sales to Armalite, though licenses may still exist for some manufacturing processes.

Conclusion

The myth that Colt continues to pay royalties to Armalite for AR-15 sales is unfounded. While the original licensing agreement may have included some form of compensation to Armalite, any current arrangement has long since expired. The current landscape is characterized by various manufacturers producing AR-15 variants, each on their own terms, without any need for royalties to Armalite.

The continued sales of AR-15 variants are drive by strong demand, innovative designs, and competitive pricing, not by any royalties paid out by manufacturers.