Does the First Sale doctrine allow business to resell licensed goods?

Business 4 views 6 answers
Specifically a business that makes handmade goods, would it be a violation of the First Sale doctrine to buy licensed product from a licensed legal distributor (B2B) and to then create other goods from that licensed raw material?

Attorney Answers

6
Gary Ilmanen ·
If you sell the other goods, they are not "first sale".
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Zebulon Chandler ·
You should make sure you create a different good for your own sales, and not merely a repackaging of the other good you purchased. Additionally you may need a license yourself. As is indicated on many items, (not for individual resale) you will run into problems if you buy in bulk items that a not intended for resale. However, you sound as if you are making a product from a raw material which means you likely would not need to rely on protection from the first sale doctrine, but if you were using a trademarked logo for instance (from the purchased good) in your product you might be running afoul of other laws beyond copyright. Best bet is to find a lawyer in your area who can consult you in high detail confidentially on your best way to protect yourself. Good Luck in your endeavor.
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David Brezina ·
Your facts are a bit unclear, and maybe the detailed facts should be discussed with an attorney, not posted on a public board. You can resell authentic goods, but if you make a material alteration, 'create other goods', you can lose first sale protection. You're not selling the same goods, you're selling different goods.
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Frank Natoli ·
First Sale gives you the right to resell any lawfully purchased product without threat of copyright infringement. It really matters not whether you buy it from a licensed distributor or not so long as it is legit. So for as the copyright law is concerned, making products from the raw material should be fine UNLESS they are affixed with trademarks. So for example, if I buy a bunch of material with really cool designs on them and decide to make backpacks from that material that should not pose a problem regards to copyright. But if the material even if licensed has say trademarks like NFL teams, etc. I could not then product my backpacks from that affixed with those names and logos and sell them without committing trademark infringement because my end product was not endorsed or sponsored by any of those brans owners. If you need further clarification, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with. Best regards, Frank Natoli-Lapin, LLC
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Alan Sack ·
The first sale doctrine allows you to resell licensed goods that you have purchased. Once you transform the products into another product, the first sale doctrine may not apply to your new products. I suggest that you consult an experienced trademark attorney in confidence to discuss your specific business plans. You can contact an experienced Trademark attorney and ask for an initial free conference. Many Trademark/IP firms, like our own, offer an initial free video or telephone conference (or in person if you are local) and would be happy to speak with you.
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Alonzo Alston ·
In NC, you may repackage another company's good(s) with your own packaging without violating state law. You seem to be transforming the goods, and in that event you are not violating the copyright law, because your use should be transformative enough that you created a new thing and the First Amendment will protect that. The question that you'll need answered is what the particular transformation does to ensure that you're creating a new thing so that you're not violating the copyrights of the originator of the good. You may have a strong fair use defense if copyright is at issue. I'm imagining, because I can't see what you're discussing, bottle caps twisted to make necklaces or table tops. It's not that you're profiting off of the copyright in that use or even the trademark, but that you've created a wholly new work and there should not be any confusion as to whether the owner of the trademark created the new product. This will ultimately turn on exactly how you're using the copyrights and/or trademarks in question, and you should hire an IP attorney to assist you. Best Wishes, AMA
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