Resell Product - Trademark Infringement?

[wicked233]

State: New York
Wondering if anyone could provide advice on whether it would be illegal in any way for me to following:

Buy product from a company at their price, break the product up into smaller peices by repackaging it into smaller quantities, and then resell the product using the actual product name and company which produced it?

Would I be breaking any FTC, Trademark, Copyright, consumer protection, or any other law by doing so?

 

[divgradcurl]

Would I be breaking any FTC, Trademark, Copyright, consumer protection, or any other law by doing so?

What exactly is the "product" you are talking about?

 

[wicked233]

The product would be hair gel. Would one product differ from the other?

 

[divgradcurl]

Well, actually I guess I was asking to try and figure out how you might break the product up -- how do you purchase the hair gel, and how do you intend to "break it up" and sell it?

 

[wicked233]

I'd rather not discuss the details about it unless there's a specific reason for getting the information I'm seeking. Basically wondering if I can take some of the hair gel out for example put it in a different container and sell it. No mark of the logo on the new container of the product name or about the company, i'm just letting the person who I'm selling it to know that the specific product is the product of that original company.

 

[divgradcurl]

If you are talking about buying something in bulk, and then transferring it to smaller containers for resale, the answer is most likely that this would be infringing on the manufacturer's trademark -- you'll either need permission from the manufacturer, or face a trademark infringement suit.

I guess if you buy the stuff in bulk, then sell it in smaller quanities as "hair gel" without identifying the manufacturer of the gel in any way, then that would probably be okay -- although I guess it would defeat the purpose of your operation.

If the manufacturer only sells the gel in bulk, and doesn't sell smaller containers, maybe you could work something out with the manufacturer to become an authorized repackager and reseller.

If the manufacturer does make smaller containers, and your idea is to buy in bulk and then compete directly with the manufacturer, then I doubt they will grant you permission to compete with them, and you'll be looking at a lawsuit if you go ahead with your plan.

 

[wicked233]

Thanks. The package is a non-bulk package, just for example regular hair gel in a container you would buy from the store or just from the company web site. I would then like to repackage in a very small quantity almost as a sample quantity and advertise as that company's product. Like you mentioned I would like to use the company name in my advertisement since otherwise it would defeat the purpose, but would not put it on the container itself.

I guess I'm just confused on what grounds this would be illegal since I would be paying in full for the product and providing a service of repackaging to the buyer so that they could try it prior to actually purchasing it on their own in a larger container. Is there a quantity threshold that should perhaps not be crossed?

Do you know specifically the law that protects the company against such operation?
Also, do you (or anyone out there) know about how to get in contact w/ larger companies and which department to write to in order to ask for resale permissions? What specifically would I need ask for in this case and how likely is it that companies provide such rights?

 

[divgradcurl]

I guess I'm just confused on what grounds this would be illegal since I would be paying in full for the product and providing a service of repackaging to the buyer so that they could try it prior to actually purchasing it on their own in a larger container. Is there a quantity threshold that should perhaps not be crossed?

You could resell the product if you sold it as you purchased it. By repackaging the product, you are, in a sense, creating a new product, and one that is not authorized by the trademark holder.

Do you know specifically the law that protects the company against such operation?

Trademark law, the Lanham Act (as codified in 15 U.S.C. 1051 et seq.), specifically section 1125 -- you can see the statutes here: http://www.bitlaw.com/source/15usc/

Also, do you (or anyone out there) know about how to get in contact w/ larger companies and which department to write to in order to ask for resale permissions? What specifically would I need ask for in this case and how likely is it that companies provide such rights?

I'm sure if you contacted their corporate headquarters and told them what you wanted to do, they could steer you in the right direction.

 

[wicked233]

Once again thanks for the info. Just another question. What if I were to use their product to make my own product by adding something to it and claiming it is just like it, but not quite it and using their name in my promotion. That would be legal, no? But, do I then run into taking full responsibility if someone happens to start losing hair from my new and improved hair gel?

 

[divgradcurl]

What if I were to use their product to make my own product by adding something to it and claiming it is just like it, but not quite it and using their name in my promotion.

Probably not legal. You would likely still find that this would be "false designation of origin." You can't pass off someone else's product as your own. I guess if you added something new you could potentially make a new product, but if you used enough "new stuff" to make a new product, then it would likely be flase advertising to say it was "just like it" unless you had some test info to prove it. And if you barely used any "new stuff," then you are back to the "false designation" problem. I say "probably not" because there could potentially be a way that this could be done legally, but I don't know how.

In addition, the parameters under which you can use another's trademark is quite limited, and if you used the other's mark in such a way to engender any "confusion" into either the origin of your product or whether your product was authorized by the mark holder, that would be infringement.

But, do I then run into taking full responsibility if someone happens to start losing hair from my new and improved hair gel?

That's a more difficult question. The answer is probably, but the full answer would depend on all of the facts of the situation, and is very fact-dependent -- there is no simple yes or no answer.

It might be worth your time to sit down with a local attorney who can review ALL of the relevant facts and let you know more precisely what you can and can't do.