Legal Question in Business Law in California

E-commerce and licensing laws?

I have an online store. I have been approached by the licensing dept of Sanrio (one of the brands I resell) and have been told that I am operating illegally and threatened with legal action. I've never thought I was violating any laws. Here's the gist of why I can't see that I am doing anything wrong...

1. I freely admit I am not a licensed retailer for Sanrio (they will not sell wholesale to you unless you have a ''real'' storefront''). I never make any claims to be and actually have a disclaimer saying I am not affiliated with them and that I am not an authorized retailer.

2. I purchase their goods at full retail cost (plus local sales tax) like any other consumer at several of their retail locations here in San Diego. They are in no way obtained illegally, unethically or otherwise.

3. I am under these impression that once I have purchased something, it is my personal property and I can do whatever I want with it. Many many people resell Sanrio stuff on eBay - I simply made my own website instead. Is there some sort of law against reselling personal goods?


Asked on 7/20/04, 1:34 pm

6 Answers from Attorneys
Amy Ghosh Law Offices of Amy Ghosh

Re: E-commerce and licensing laws?

You need to retain an attorney to respond them back. Also...you may be infringing their trademark and other intellectual property rights.

please take a look at my website at www.lawyers.com/amyghosh

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Answered on 7/21/04, 12:00 pm
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: E-commerce and licensing laws?

I think your instincts are right on the money. You probably don't even have to go so far as to say you're not a licensed reseller. Depending on the content of your site, you might be infringing one or more of sanrio's trademarks. I'd like to see any correspondence you've received from Sanrio and I'd like to see your site. It's an interesting area of the law.

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Answered on 7/20/04, 3:10 pm
Terry A. Nelson Nelson & Lawless

Re: E-commerce and licensing laws?

You should be ok, they may be trying to intimidate you when they can't legally stop you. You should have counsel write them a 'get lost' letter. Having an attorney will force them to think twice before suing you. Contact me if interested.

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Answered on 7/20/04, 3:14 pm
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: E-commerce and licensing laws?

Assuming your facts to be true, then what you are doing appears to be legal. You should be sure, however, that you are not violating their trademark or copyright rights on your website.

You should have a

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Answered on 7/20/04, 4:07 pm
Joel Selik www.SelikLaw.com

Re: E-commerce and licensing laws?

I know of no law that prevents you for doing as you are doing.

I will be happy to do a letter to them for you at no charge.

Joel Selik

San Diego 760-479-1515

Las Vegas 702-243-1930

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Answered on 7/20/04, 6:42 pm
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: E-commerce and licensing laws?

I think you are getting some bad advice. A company has the right to develop and enforce a marketing plan of their own chosing and if they want to deal only with real live stores to sell their product, they can enforce that. They probably will sue you just to show their other real store dealers that they mean what they say. You may also be infringing their trade mark, another problem. Your probably better off finding another product that doesn't care how it sells, but just wants to sell. This one is not for you, unless you can negotiate something with them.

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Answered on 7/20/04, 10:14 pm


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