Let's just say for an example Mattel Trackmaster makes and sells an older version of Duck, Tomy own the design to this Duck and charge Mattel a fee of $2 per item to use the designs (not the actual number just a guessed amount as an example). Now with the Trackmaster train already losing a slice of profit just because of the design which Mattel do not own, They already tried cost cutting measures in the last couple of years (trying to standardize the flat drive unit for the whole range, less wheels, cheaper plastic, different battery terminals, cheaper rolling stock with no loads etc. And the price of the trains reflected this.
So... They redesign the entire range, cut TOMY out altogether, not having to pay a fee to use anyone elses designs because Mattel own HiT entertainment which owns the Thomas brand.
This scenario could also happen but is hypothetical, Mattel wants trackmaster to sell in Asia, Mattel takes the license away from Tomy to produce motorized Thomas toys. Plarail Thomas is now history
So... They redesign the entire range, cut TOMY out altogether, not having to pay a fee to use anyone elses designs because Mattel own HiT entertainment which owns the Thomas brand.
This scenario could also happen but is hypothetical, Mattel wants trackmaster to sell in Asia, Mattel takes the license away from Tomy to produce motorized Thomas toys. Plarail Thomas is now history