Re-selling bicycles in USA

[Jason27]

I am looking for legal advice regarding reselling bicycles that have been modified to electric.

Basically I take old used bikes that I buy from a non profit organization. I clean them up, put on new tires, and retrofit them to electric. I then resell the bikes for a profit. I have re-sold old schwinns and huffys that would have otherwise been in the dumpster or landfill.

I have been reading about first sale and material difference but i need other opinions. Clearly a electric schwinn bike i build is far different than anything they have right now.

None of my customers have been confused about where the product came from. They know i retrofit them at my store.

Should I take off the schwinn/huffy logos off the bikes? Would that make a difference? I just want to make sure im legal.

 

[divgradcurl]

I am looking for legal advice regarding reselling bicycles that have been modified to electric.

Basically I take old used bikes that I buy from a non profit organization. I clean them up, put on new tires, and retrofit them to electric. I then resell the bikes for a profit. I have re-sold old schwinns and huffys that would have otherwise been in the dumpster or landfill.

I have been reading about first sale and material difference but i need other opinions. Clearly a electric schwinn bike i build is far different than anything they have right now.

None of my customers have been confused about where the product came from. They know i retrofit them at my store.

Should I take off the schwinn/huffy logos off the bikes? Would that make a difference? I just want to make sure im legal.

Just don't use the manufacturer's names (Schwinn, Huffy, etc.) in your advertising, and you should be fine.

 

[Jason27]

so the modifying and reselling of the bikes is ok as long as i remove the company name?

 

[FlyingRon]

so the modifying and reselling of the bikes is ok as long as i remove the company name?

That's not what they said. You can remove the name if you like, but the key is using their trademark in infringing way which means using it to market your bikes or in otherwise in a way that confuses whether you are or are working with the Schwinn folks.

 

[JETX]

And now for a legally ACCURATE answer.....

Not even discussing the modifications you are making, as long as you legally OWN the item, you can use the name or anything else you want.

First Sale Doctrine:
Copyright Act of 1976, 17 U.S.C. § 109.
The doctrine allows the purchaser to transfer (i.e., sell or give away) a particular lawfully made copy of the copyrighted work without permission once it has been obtained. This means that the copyright holder's rights to control the change of ownership of a particular copy end once that copy is sold, as long as no additional copies are made. This doctrine is also referred to as the "first sale rule" or "exhaustion rule."

Based solely on the information in your post, there is NO copyright issue.

 

[Mass_Shyster]

And now for a legally ACCURATE answer.....

Not even discussing the modifications you are making, as long as you legally OWN the item, you can use the name or anything else you want.

First Sale Doctrine:
Copyright Act of 1976, 17 U.S.C. § 109.
The doctrine allows the purchaser to transfer (i.e., sell or give away) a particular lawfully made copy of the copyrighted work without permission once it has been obtained. This means that the copyright holder's rights to control the change of ownership of a particular copy end once that copy is sold, as long as no additional copies are made. This doctrine is also referred to as the "first sale rule" or "exhaustion rule."

Based solely on the information in your post, there is NO copyright issue.

The first sale doctrine does not apply to altered goods:

The doctrine does not protect alleged infringers who sell trademarked goods that are “materially” different from those sold by the trademark owner. Mary Kay, Inc. v. Weber, 601 F.Supp.2d 839, 852 (N.D.Tex.,2009)[/u]

 

[JETX]

The first sale doctrine does not apply to altered goods:

Completely modifying the bike (adding electric motor, etc.) is NOT 'altering the goods'.... it is completely remaking a product that the 'original manufacturer' doesn't even offer.

In fact, your cite doesn't even include the term 'altered goods'.

If you knew how to read a court opinion, you would have realized that the issue in the case you cite... has absolutely NOTHING to do with this case. They were simply reselling Mary Kay products on ebay (and subsequently under a 'separate' name).

Here is a link to the REAL full opinion (not a legal subscription site so that even YOU can access)... so that you can see your mistake.
- Google Scholar

 

[Jason27]

Thanks for the advice, it looks like I will have to take off the logos if i want to modify and resell them.

If the bike is now plain, can i add my own logo to the bikes i retrofit?

 

[FlyingRon]

Thanks for the advice, it looks like I will have to take off the logos if i want to modify and resell them.

Nope, nobody said that.

If the bike is now plain, can i add my own logo to the bikes i retrofit?

You can logo them even if the original schwinn badges are present.

 

[Mass_Shyster]

Thanks for the advice, it looks like I will have to take off the logos if i want to modify and resell them.

Nope, nobody said that.

Nevertheless, it's still a good idea. There are enough suits filed alleging violations of the Lanham act, that the simple act of removing the logos may save thousands in legal fees.

 

[Jason27]

Im a small business with barely any capital. I just want to take old bikes and make them electric. I do not have any desire to profit from the company's logo, design, or violate any patent or copyright law.

Just to be clear, as long as the bike is plain, or has only my logo, then I am not violating anything by reselling the bikes?