Can I sell products without a licensing agreement from the brand/company?

[icespider]

What is the name of your state (only U.S. law)? California

I have an opportunity to purchase a batch of goods manufactured in China, but I do not have a contract, license, permission, etc. from the owner of the brand that commissioned the manufacture of the products. The factory desperately wants to sell the product direct to me because the owner of the brand has not come up with the money (and never will) to pay for the products, which have been sitting in a warehouse in China for 1.5 years. The only contract between the manufacturer and the brand owner is summarized by: "We will produce "x" number of products with your brand logo for "y" price and deliver upon payment." The brand owner has maintained his business license, website, and everything else to maintain ownership of the brand. The owner has offered to give me licensing rights, but at a price that will destroy any hope for profit.

If I decide to sell the products without a licensing agreement, what, if any, legal consequences might I face?

Any advice is greatly appreciated.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

I have an opportunity to purchase a batch of goods manufactured in China, but I do not have a contract, license, permission, etc. from the owner of the brand that commissioned the manufacture of the products. The factory desperately wants to sell the product direct to me because the owner of the brand has not come up with the money (and never will) to pay for the products, which have been sitting in a warehouse in China for 1.5 years. The only contract between the manufacturer and the brand owner is summarized by: "We will produce "x" number of products with your brand logo for "y" price and deliver upon payment." The brand owner has maintained his business license, website, and everything else to maintain ownership of the brand. The owner has offered to give me licensing rights, but at a price that will destroy any hope for profit.

If I decide to sell the products without a licensing agreement, what, if any, legal consequences might I face?

Any advice is greatly appreciated.

A lawsuit that would completely eat up all profits, plus cost you more.

 

[FlyingRon]

I also would highly suspect any story you got about why you should be buying branded items from a supplier in China rather than through the manufacturer's channels. You understand that your goods can very well be interdicted at the US border when you bring them in. Yes you can be criminally charged as well as sued by the owner.

 

[quincy]

I agree with FlyingRon.

It sounds very much like the goods sitting in the warehouse in China are counterfeit goods and, as such, they would be seized at the U.S. border. Any money you spent on the import of these goods would be lost and criminal charges against you could (probably would) result.

 

[icespider]

OK, thanks for the replies.
The goods are not counterfeit, the owner of the brand has confirmed this. He has used this supplier for previous runs of the same product. It is a relatively small brand (we're not talking about a common/well known brand), so I doubt the goods would be seized upon landing in the US.
However, the potential of being sued is enough reason for me to back out of the deal. I was just hoping that there would be some workaround that I didn't know about.

Thanks all.

 

[quincy]

OK, thanks for the replies.
The goods are not counterfeit, the owner of the brand has confirmed this. He has used this supplier for previous runs of the same product. It is a relatively small brand (we're not talking about a common/well known brand), so I doubt the goods would be seized upon landing in the US.
However, the potential of being sued is enough reason for me to back out of the deal. I was just hoping that there would be some workaround that I didn't know about.

Thanks all.

Perhaps you can negotiate costs with the owner of the brand.

Good luck.

 

[icespider]

Perhaps you can negotiate costs with the owner of the brand.

Good luck.

I'll definitely try that route. Thank you for the help.