Legal Question in Business Law in California

Re: Legal advertising

Generally, yes. Although a brand owner gives up a lot of his copyright and trademark protection when the product is sold to the end user, there is a lot of case law to the effect that the brand owner can exercise control over its brand, trademark, copyrights, etc. through the channels of commerce, so long as the practice is not in illegal restraint of trade (monopolistic or anti-competitive beyond what's reasonable to protect the brand from debasement, dilution, etc.).

You should try to find out what the brand's game plan is for moving its product through distribution channels. If you learn the rules and agree to play by them, e.g. by being an authorized distributor, you'll be given a license or whatever to display the trademark and advertise the product.

If the rules seem discriminatory or unduly in restraint of trade, perhaps consult with an intellectual property lawyer in your city.