First Sale Doctrine: can sellers resell your product?

First Sale Doctrine provides protection for Amazon sellers accused of trademark and copyright infringement. In other words, after a product is legally purchased the "First sale Doctrine" gives the owner the right to sell it to anyone.

Anyone who bought branded goods has the right to resell them in unchanged condition.

That said, Amazon sellers, who are engaged in the storage, display and resale of goods with a genuine brand only are usually protected from claims of infringement of intellectual property rights.

However, there is an exception to the "First Sale Doctrine":

Material Differences, which often cause Consumer Confusion.

If there is a noticeable difference between the product sold and the same product from the manufacturer and this difference causes confusion among consumers, then the Amazon seller may be liable for intellectual property infringement. Thus, products which are genuine but different from the manufacturer's conditions (not original packaging, no warranty, etc.) will not be considered authentic, in accordance with the law.

It can be assumed that "Material Differences" only determine the external features of the product. However, Amazon sellers must consider quality control standards and money-back guarantees to ensure that the product remains authentic.

Some brands or manufacturers set their own quality control standards, which their suppliers and distributors must comply with if they want to continue distributing the manufacturer's products.

It is well-known in the US that if the goods have "Material Differences" and do not comply with the copyright holder's quality control standards, they are not unique and may even be considered to be fake.

How to avoid situations when wholesale resellers "stick" to the listing and sell the same product?

If you provide an invoice for wholesalers it makes sense to indicate that the goods cannot be sold on Amazon. Specify that the warranty is provided by the seller and manufacturer. Also, based on the arguments given in this article, send complaints through the Brand Registry, if necessary. Thus, you will be able to protect yourself from those who want to resell your product, with a registered trademark, on Amazon.

Taking this opportunity, we would like to remind you, that TaxFreeCorp not only opens companies in the USA, but also professionally registers trademarks and brands 📋