zombie84 said:

Ralph McQuarrie has always been legit when he sells his stuff.

This guy on the other hand--what IS he claiming exactly? That he DESIGNED them? McQuarrie designed them, and John Mollo translated the designs into a physical costume. This guy just worked at the factory they were manufactured in. So, putting aside the issue of licencing, he doesn't even have a claim to anything in the first place.

If I read it right, what he's claiming is that he does have a right to sell them and make a profit since the only agreement that was in place was a verbal one. He's not saying that LFL doesn't also have a right to sell them, he's just saying that there was no contract in place transferring all the rights to Lucas. Considering that the agreement was entered into before Star Wars made it big and before Lucas even expected Star Wars to be a huge success, I wonder if that's what really happened.

Here's how I see it possibly taking place:

Lucas: Hey, can you guys make me some suits of armor with helmets that look like this?
Armor guys: Yeah, we can do that. How many do you need?
Lucas: I need this many and I need them by this date.
Armor guys: No problem.

Armor guys then go to work on making armor with nothing more than a "Yeah, we can do that" agreement in place. They later invoice LFL for the cost of the armor and each party goes their separate ways, at least until the next movie (which nobody knows will happen at that point).

Seeing as how Lucas wasn't able to shut down Parks Sabers, this guy may have a case. Worst case scenario is that he gets shut down. Best case scenario is that he can't use the term "stormtrooper" so instead he starts using "spacetrooper". Just like how Parks Sabers are not lightsabers, even though they look just like them.