Legal Question in Business Law in Utah
Say I sell box of music CD's to my friends that I created, and he goes and sells them door to door claiming the money goes to charity, then gets caught. Can I get in trouble?" PS i'm getting a $5 cut out of each CD
1 Answer from Attorneys
First, we look at copyright. If you did not write the music and perform the music yourself, you need to have licenses from the copyright holders to put the music onto CDs and sell them. Without the appropriate licensing in place, you're easily looking at $100,000 or more in civil fines and attorneys' fees.
Second, by telling a buyer that the money s/he spends on the CD is going to charity and then pocketing the funds, your friend would be selling under false pretenses and giving you a piece of the action. That's fraud: potential jail time. Because the money leads straight to you (you produced the CDs and are getting a "cut"), the fraud leads straight to you.
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