Is the manufacturers consent required to sell (electronics) products?

[nym9]

New York

Regarding being "authorized" to sell a manufacturers electronics products by said manufacturer, is it legally required?

May any entity or individual re-sell any product without the manufacturers authorization or consent?

I am asking as a potential seller, but as a buyer, I have dealt many times with "unauthorized" sellers, who offer lower prices (on ebay, websites) with the knowledge that the manufacturer may not honor any warranties.

Is this an illegal activity?

 

[nym9]

bump for this q

 

[divgradcurl]

Regarding being "authorized" to sell a manufacturers electronics products by said manufacturer, is it legally required?

May any entity or individual re-sell any product without the manufacturers authorization or consent?

It depends. There is a concept known as the "first sale doctrine" which says that once your purchase something, you are free to resell it (or otherwise dispose of it) without having to get the manufacturer's permission.

However, this is limited -- it really only applies to retail sales, so buying wholesale, or buying from a wholesaler that is not authorized, will not bring you under "first sale doctrine" protection.

Further, the manufacturer can limit the use of his or her name and logo during the resale of the products, even if the products are protected under the "first sale" doctrine.

I am asking as a potential seller, but as a buyer, I have dealt many times with "unauthorized" sellers, who offer lower prices (on ebay, websites) with the knowledge that the manufacturer may not honor any warranties.

Is this an illegal activity?

If you are the buyer, then this is not illegal in the sense that you will get into any trouble if you buy something from a non-authorized dealer. The manufacturer, as you know, may refuse to honor any warranties, and you could face problems if YOU then decided to resell the product. But buying a product from a nonauthorized source isn't illegal, it's just risky.

 

[nym9]

buying wholesale, or buying from a wholesaler that is not authorized, will not bring you under "first sale doctrine" protection..

Thanks for the info. What about all the ebay sellers, websites, and even stores who are not authorized by the manufacturer but which buy wholesale in order to resell?

Further, the manufacturer can limit the use of his or her name and logo during the resale of the products, even if the products are protected under the "first sale" doctrine.

If the name or logo is trademarked, wouldn't adding a (tm) and a disclaimer allow you to use them in the resale?