Trademark laws protect phrases, logos, slogans, and symbols used by companies to distinguish services and products. When a company registers a trademark with USPTO, the trademark owner has the right to enforce the mark across the country. However, in some situations, a company permits others to use trademarked items without permission. So, the biggest question is- Can you legally sell a company’s trademark product?
Learn About Trademark Infringement
Almost every company uses a trademark license agreement template. Trademark infringement occurs when another unauthorized company or person has used the registered trademark.
For instance, you have thought of manufacturing electronic gadgets for consumers. But, you have stamped the unique apple logo to make consumers feel that it is Apple’s product. It can result in trademark infringement, and you will face legal complications.
The company owners may register their trademark with the federal or state governments. State-level registration is accomplished by the secretary of the office in the state. It enables the owner to use the trademark throughout the state.
The federally registered trademark owners can find better solutions when someone has violated the trademark. When they have filed a trademark infringement lawsuit, they have a chance of recovering the damages.
Trademark Usage Is Permissible for Informational Purposes
Informational uses of a company’s trademark do not need the owner’s permission. The major purposes should be to educate, inform, and show opinions.
For instance, you do not need permission to add a Chevrolet logo to an article related to Chevrolet trucks.
Can You Sell Someone Else’s Product?
You might have chosen to deal with a patented product. In this case, you can freely market your original product and the modified version.
After you have bought something from a retail store, you can do anything with it. Manufacturers have no control over that product. But, when you do it as a part of your business, there may be several issues.
For instance, you can face warranty issues with the product.
You have thought of running the business, not as a professional reseller. In this situation, the warranties will have no valid. As you sell the goods, your customers will find no warranties.
Another issue is directly related to the trademark. You might have thought of displaying manufacturers’ logos to market their products for resale. But, you should take permission from the manufacturer before doing it. Without permission, you will find yourself engaged in trademark infringement lawsuits.
The third problem is sales tax issues. As you buy retail products and resell them, you have to pay 2 types of sales tax. You need to make payments to buy the goods. Your customers will pay you while you sell these products. It is important to have a reseller’s permit and license to run your business.
You should register with the state tax department to get the license. By submitting the tax ID number, you can apply for the license. In case you have avoided sales tax, you will find penalties. Your business entity can never be hidden.
These are some complicated accounting and legal issues.
The Legality of Selling the Branded Products’ First Copy
It is obviously not a legal activity. The brand can file a lawsuit for counterfeiting its products. So, when you sell a similar product, it can easily be detected, and you will face trademark infringement complications. While the chosen product’s brand has a registered trademark, the original owner will take legal steps against you. Someone can report to the brand owner that you have made a copy of the products. There are criminal and civil laws to deal with these cases. Thus, it is better to avoid running this type of illegal business.
Is It Illegal to Relabel Products?
There is a process known as the reverse trademark passing offs. It is a way to out the logo of a different company and replace it with your own logo.
You can also decide on using a mark for a different reason without signing a trademark. You may use the product statement with some other relevant information.
Reselling Branded Products Online
Some of us think of legal selling IT equipment through a website. You are not obliged to gain authorization to sell branded products online. The major eCommerce platforms have not taken steps to prevent sellers from selling products online. Thus, you will be safe in this approach.
Though you have the right to put products on sale, some companies control how and what you should sell. The Government also shows its authority to manage trade and pricing rates with force. But, the law court has no power to apply these tactics.
Thus, you can resell legitimately purchased products. However, you have to put the brand logo on the product while reselling it. Similarly, you should not let others use the intellectual property of your business without your permission.
Can You Sell a Product With a Brand Name on It?
You must obtain permission to sell products labeled with a trademark. Trademark rights are always a valuable resource, and the owners of the intellectual property do everything to defend it.
Can I Repackage and Sell a Product?
Although you have no manufacturing facility, you can run a business by repackaging and selling the products. You will not find legal problems while selling the white label product.
You can create a brand on your own and promote the products. You will have better control of these products. Moreover, you can repossess an item purchased legitimately. There is nothing illegal with this activity. It is the owner’s responsibility to permit you to use his logo for advertising and reselling items.
Can I Resell a Customized Product?
You can resell a product in the market after buying it from the manufacturer. You can also recycle the item. However, some original manufacturers will ask you to mention the inventor of the product although you have customized it.
You may have several questions about the legality of selling other companies’ trademarked products. So, you can hire a lawyer to solve your queries.
As entrepreneurs, we are continuously looking for new avenues to increase our revenue streams. One of the most effective ways to do so is by selling another company’s products. The product might be popular, unique, or simply something that you think your customers will love. However, there’s a catch: the product has a trademark, and you need to know the legalities of selling it.
First and foremost, it’s important to understand what a trademark is. A trademark is a symbol, logo, word, phrase, or design that identifies and distinguishes a product or service from others in the market and signifies the source of the product or service. A product with a trademark ensures that the product is of the highest quality and retains a specific reputation in the market.
Selling a product with a trademark without permission can lead to significant legal repercussions, including hefty fines, damage to your reputation, and potentially losing your business altogether. Therefore, it’s essential to understand the legal procedures.
The first thing to do is to research the products you want to sell. Check whether they have a trademark, and if they do, research the trademark owner. Get in touch with the trademark owner and seek permission to sell their products. Many companies have reseller programs that allow authorized resellers to sell their products in exchange for a commission.
If the trademark owner doesn’t have a reseller program, you might have to negotiate with them to work out a deal that’s mutually beneficial. Attorneys specializing in intellectual property might come in handy in this situation as they can oversee the agreement to ensure that both parties are satisfied. The legal professional can also draft a contract that outlines the terms of the agreement.
It’s also important to ensure that you’re sourcing the products from authorized distributors. A trademark owner might have authorized distributors who sell products at wholesale prices. It’s crucial to confirm that the distributor you’ve chosen is authorized to sell the products and avoid shady resellers selling counterfeit goods.
When advertising and promoting the products, it’s important to comply with trademark laws. Advertise the product in a way that doesn’t mislead customers into thinking that you’re the manufacturer, and respect the trademark owner’s rights by not infringing on them.
In conclusion, selling products with trademarks is legal, but it’s essential to follow specific procedures to avoid legal consequences. The most important thing is to get permission from the trademark owner and ensure that you’re sourcing the products from authorized distributors. Seek legal assistance when necessary and comply with trademark laws when promoting the products. Remember that a trademark is a valuable asset for a company, and you must respect the owner’s rights.
