So, the RNLI should have got MM, who have a license, to manufacture their pin badges for them, and they wouldn't have had to pay their £250?
MM's agreement is undoubtedly wrapped up in "commercial sensitivity", but essentially it sounds as if they're paying for close to a merchandising monopoly, which is fair enough, and rightly, as Rob has positioned several times, their contract payments go to the TT 'greater good'.
Going back to the £250 paid by the RNLI though, by my reading those monies should have actually gone to MM, whose production / sales of pins may be undercut by allowing another producer, not to the DED's lawyers.
Rob has said several times it's complicated (maybe my paraphrasing), hasn't done a great job at ever explaining it, and it does seem a dog's dinner that may get fixed. One thing I'd like to see though is that the onus is shifted from DED officers trying to monitor shops etc, and shift an emphasis to actual licence holders to monitor, complain and take legal action to protect their purchased rights.