Legal Question in Intellectual Property in New York
If I buy bulk name brand goods from a factory (in this case, a Chinese factory), can I legally re-sell them for a profit? Do I need the brand name's permission / Do I need to pay a royalty?
Thanks
2 Answers from Attorneys
It's hard to understand what you mean by "bulk name brand goods." If you're buying unauthorized production it's still a violation of the brand names' trademark rights and importation of the material would be a separate violation of the law.
There may also be copyright issues involved depending on what type of product is at issue. Importation of video games, books and other items have been specifically addressed recently by US Courts. Section 109 of the Copyright Act provides that a copyright owner of a product has the sole initial right to distribute it and that subsequent buyers also have the right to "to sell or otherwise dispose of the possession of that copy" by selling it again to someone else under the "First Sale Doctrine." But the First Sale Doctrine may not necessarily apply to items in which a company's copyrighted logo was inscribed on a product made abroad.