US MINT NOT HAPPY WITH SILVER SURFER QUARTERS

[MattBrady]

So – remember the promotion where The Franklin Mint and Fox were teaming up to put 40,000 quarters emblazoned with the Silver Surfer on one side, into circulation, claiming that the quarters would still be usable as legal tender.

Yeah – well, the US Mint doesn’t agree.

Last Friday, the Mint issued a release in which it said it had learned of the quarter, and the planned promotion, and advised the studio and The Franklin Mint that they were, in fact, breaking the law. As many Newsarama posters had pondered and posited, it’s illegal to turn US currency into an advertising vehicle. Violators can face a fine.

From the release:

"The promotion is in no way approved, authorized, endorsed, or sponsored by the United States Mint, nor is it in any way associated or affiliated with the United States Mint."

The US Mint did not say whether the studio or The Franklin Mint would face a penalty.

From the AP report:

The altered coins are quarters honoring the state of California that entered circulation in 2005. They feature George Washington on the front, as usual, but a colorized version of the character on the back. All 40,000 are slated to be in circulation throughout the country by the end of Memorial Day weekend, and about 800 were released in each state.

Fans who find the customized quarters can enter a contest online to win prizes and a private screening of the movie.

The Franklin Mint mainly produces collectibles or commemorative medallions. Unlike its other commemorative coins, these aren't being sold, said Franklin Chairman Moshe Malamud. He emphasized that putting the character on the coin didn't alter the integrity of the coin.

"We are very, very protective of the currency of this country. Our goal was to enhance the coin," Malamud said.

Fox spokesman Chris Petrikin said that neither the studio nor the Franklin Mint intended to violate any laws or "suggest that there was any approval from the U.S. Mint or the U.S. Government" for the Silver Surfer coins.

"These are commemorative coins like many the Franklin Mint creates on a regular basis for various properties," he said. "We were confident this coin followed the same procedures and guidelines but will certainly take any necessary steps if advised otherwise."

According to the original release and contest information, the coins were to be placed into the currency streams across the United States, allowing them to fall into the hands of individuals who would visit the website and enter the contest. Clearly, with one side of the coin obscured, questions about the status of the quarter as legal tender could be raised by either party involved in an exchange of the coin (buyer or seller of merchandise, for example). In the original release, The Franklin Mint states: "This legal tender coin is a 2005 California statehood commemorative quarter minted by the United States Mint and specially color-enhanced by The Franklin Mint for Twentieth Century Fox," strongly suggesting and implying that the coin, as modified by the company to carry the advertisement, is still legal tender, rather than strictly a collectible with no monetary value.

And yes - these things are now burning up on eBay, with roughly 72 of coins up for auction, including a handful from a seller advertising that they received them from a Fox representative. As the seller, "skazzi" explains it in his posting, Fox representatives were told to spend the quarters as if they were legal tender.

"skazzi" wrote:

I have 10 of the special gold tinted Rise of the Silver Surfer Quarters and this auction is for one of those 10. 40,00 were made in total and circulated nationwide and the Silver Surfer decals were placed on California State quarters here where I live in Colorado at the Denver mint. They are fully legal and tendered.

On the day of their release I had one of the Fox reps come into my work with a bucket full of these quarters that they told him to go out and spend to get them in circulation. I saved several of the ones he spent in my store for myself of course P. Since these coins were given to me at the point of purchase from a Fox Rep himself I can say with 100% certainty that they are uncirculated and in mint condition, straight from the mint!

The seller then added this revision:

Contrary to what the Fox Rep told me, the official website states that this promotion is not affiliated with nor endorsed by the U.S. Governement or its mints. The quarters were California State quarters and were probably purchased at the mint and then decaled and tinted elsewhere.

[Carlos Javier]

Yeah...not a big surprise. Good idea, though.

[s*p rules]

These things will be worth a mint on eBay someday.

Wow, just clicked on the link in the article - who the hell would pay $100+ for a worthless coin?

[VinnyMac666]

Thank God. When I heard about these quarters WITH ADVERTISEMENTS ON THEM, I thought, "That's it. The line between the corporate world and government is completely disappearing." That would of course be a bad thing. I'm really glad that this is still illegal.

[H-7]

now its sure to be a collectors item. i have 1 on the way but i bought it on the 2nd day they were out. i ended up paying 40.00 for something about triple the value not that bad a deal. then i found someone with 4 for 175.00 sunday night and bought that set. i figure 1 at about 45.00 vs 1 at 150+. i have seen as high as 200+ for just 1. people are crazy on ebay for things.

[Doctor_Chronos]

They are still legal tender though right? Basically all they did was take a quarter and put a Silver Surfer sticker on them. I've had quarters that someone has colored with a magic marker so isn't this the same sort of thing. It is illegal to deface money but aren't these really just defaced quarters and once they make it to the bank will be taken out of circulation and whatever happens to "damaged" coins will happen to these.

And yeah, they should get a fine. I'm not buying that the Franklin Mint didn't know that it was illegal to deface legal tender. They and Fox just thought they could get away with it and play stupid if they didn't.

[Ben543250]

Originally Posted by s*p rules

These things will be worth a mint on eBay someday.

Wow, just clicked on the link in the article - who the hell would pay $100+ for a worthless coin?

Same reason people pay over cover price for a comic.

[Doctor_Chronos]

Originally Posted by s*p rules

These things will be worth a mint on eBay someday.

Wow, just clicked on the link in the article - who the hell would pay $100+ for a worthless coin?

It's not worthless. They are worth exactly $0.25

[Spider-Bob]

Seems like a brilliant device as a promotion. Honestly I don't see how the lawyers of either FOX or Franklin would approve this promotion without knowing the legal perils - a fine (assuming it's petty enough) that could be factored into the promotion budget.

From the image I saw online the quarter only seems to be altered with a thin plastic sticker affixed to the reverse side - not a re-minting of the coin. The only reason I could think to pay more than 25 cents for one of these coins is to have a chance to travel to London for the premiere - otherwise no one is going to be clamoring for this coin five, ten or a hundred years from now.

[O.J. Flow]

Oops.
Another two? Not surprised.

[deworde]

Originally Posted by s*p rules

These things will be worth a mint on eBay someday.

Wow, just clicked on the link in the article - who the hell would pay $100+ for a worthless coin?

Are you kidding? This is probably a landmark moment in both Advertising and Currency. In 2015, when the laws are relaxed, and they start advertising on coins, this'll be the moment they look back to.

[Doctor_Chronos]

Found this on google.

http://answers.google.com/answers/threadview?id=426715

I'm not a legal head but it looks like they may be in the clear as it wasn't done with fraudulent intent?

By fraudulent, I took to mean that if someone took a quarter and tried to alter it so that they could pass it off as a dollar coin or something.

[c_andrew_s]

That is sad to me that people are spending big money for them

[DeTroyes]

I said this when it was announced last week, and I'll say it again.

The Treasury Department (of which the US Mint is a part) has always taken a dim view to US Currency being used for advertising purposes like this. Anytime anyone tries to alter US Currency with an advertisement, with the intent of putting them back into circulation, has found themselves facing stiff fines.

Many people have pointed out that, in the past, dollars or other coins have been altered and put up for sale without any comment by the US Mint. But there's been one big difference here: No one expects that those $1.00 bills with Darth Vader's picture on them, or half-dollars with 9/11 Commorative etchings on them, to actually be put back into circulation and used as currency. In this case, Fox was planning on doing just that. Once they crossed that line, it was inevitable that the Mint was going to step in and interfere.

That still doesn't mean the coins won't be made available in some way. But it does mean that they won't be entered into the money stream and wind up in our change. At least, not legally.

[Livewire2nd]

Originally Posted by H-7

now its sure to be a collectors item. i have 1 on the way but i bought it on the 2nd day they were out. i ended up paying 40.00 for something about triple the value not that bad a deal. then i found someone with 4 for 175.00 sunday night and bought that set. i figure 1 at about 45.00 vs 1 at 150+. i have seen as high as 200+ for just 1. people are crazy on ebay for things.

Except for the Fact that Now that The Promotion is all Screwed up I can see the Franklin Mint Selling this Things on the Coin Chan for 10 bucks a pop. I got a 2 rolls of these from my Bnk for 10 bucks and sold them in stacks of 8 and a Stack of 4 and Already made almost 3 grand.

[0bsessions]

Originally Posted by Doctor_Chronos

It's not worthless. They are worth exactly $0.25

Not legitimately anymore, they aren't. They are not legal tender.

Then again, from there you move into the realm of anything is worth only what one is willing to pay for it. That being the case, these things are worth over a hundred bucks a pop.

[Doctor_Chronos]

Originally Posted by 0bsessions

Not legitimately anymore, they aren't. They are not legal tender.

Then again, from there you move into the realm of anything is worth only what one is willing to pay for it. That being the case, these things are worth over a hundred bucks a pop.

Why aren't they legal tender? They just put a sticker on a quarter. It's still a quarter.

[Simon DelMonte]

So the question is, how does a place like Franklin Mint make a mistake of this sort? You'd think they would know the law, given how much they rely on the coin trade and on the goodwill of the US Mint.

[USAgent]

Originally Posted by Doctor_Chronos

Why aren't they legal tender? They just put a sticker on a quarter. It's still a quarter.

Yeah, if it's just a sticker, just peel it off and use the quarter. Or just stick it in the vending machine and it might work. Or, if I give it to some minimum-wage cashier at some convenience store, they'll take without batting an eye.

I don't get why anyone would pay $100 for a coin with a lousy sticker on it. I think it is all hype, and once the movie comes out and sucks, these won't be worth anything but the $0.25.

[USAgent]

Originally Posted by Simon DelMonte

So the question is, how does a place like Franklin Mint make a mistake of this sort? You'd think they would know the law, given how much they rely on the coin trade and on the goodwill of the US Mint.

If the real problem is that they put them back into circulation after putting the sticker on, maybe Franklin Mint had nothing to do with that. Maybe they just delivered the product and then it was out of their hands? Who knows. I can't imagine the fines will be that substantial, or make the the studio worry.

[bcondray]

All I gotta say is...

Well..DUH!!!

[CitC]

Yeah, if it's just a sticker, just peel it off and use the quarter. Or just stick it in the vending machine and it might work. Or, if I give it to some minimum-wage cashier at some convenience store, they'll take without batting an eye.

I don't get why anyone would pay $100 for a coin with a lousy sticker on it. I think it is all hype, and once the movie comes out and sucks, these won't be worth anything but the $0.25.

But this isn't really a sticker at all, is it. You can't just peel it off - The coins must have gone through a process to make the image a permanent thing (or very hard to get off).

[Grendel Prime]

The U.S. government needs to aggressively defend the integrity of its currency, much like any publisher would aggressively defend the integrity of its trademarks and/or copyrights.

But still... HELLLLOOOO collectibility!

[vbartilucci]

Going back to my original theory, this news has created more talk about the quarters than the actual release of the quarters has.

There's no such thing as bad press.

[CKdoubleU]

A year from now these coins won't be worth more than $10.