If I buy a product that is protected by a patent and modify it, rebrand it and sell it for profit, am I liable for infringing IP?
Assuming I payed full price of the product.
6 Answers
I think the question asks if you can buy a patented product, modify, and resell with a new brand.
Generally, once you buy a product covered by a patent, you can resell it without infringing. This is the first sale doctrine - the patent rights are exhausted by an authorized sale. The modification could be a problem if it's so extensive that you essentially make a new product. In that case, you would apply a standard infringement analysis.
But there's a another potential IP problem here. If you're literally modifying another company's product and rebranding, you are likely violating trademark and/or trade dress, because you're passing off another company's product as if you made it in the first place.
Generally, once you buy a product covered by a patent, you can resell it without infringing. This is the first sale doctrine - the patent rights are exhausted by an authorized sale. The modification could be a problem if it's so extensive that you essentially make a new product. In that case, you would apply a standard infringement analysis.
But there's a another potential IP problem here. If you're literally modifying another company's product and rebranding, you are likely violating trademark and/or trade dress, because you're passing off another company's product as if you made it in the first place.
Yes. But if your operation is small scale, it is likely not worth it for the patent holder to sue you.
Keep in mind: patents are legal proof of ownership. There are no patent police out there looking for patent violations. It is the responsibility of the patent holder to find people who are infringing, and sue them (or develop licensing agreements with them in the first place.)
I studied US and international patent law for my senior economics thesis on bicycle innovation. In short: patents provide good tactical leverage for large firms to use when negotiating with each other, but are mostly irrelevant/ineffective for individual inventors.
Also if you're afraid of the imaginary patent police, keep in mind:
Patents: legal ownership of a technique/design/tool
Copyrights: legal ownership of creative material (video, writing, music, etc.)
Trademarks: legal ownership of a brand: a legitimate claim that a product was produced by a certain company.
At the moment, at least in the US, it's the copyright police which are scary--not the patent police.
Keep in mind: patents are legal proof of ownership. There are no patent police out there looking for patent violations. It is the responsibility of the patent holder to find people who are infringing, and sue them (or develop licensing agreements with them in the first place.)
I studied US and international patent law for my senior economics thesis on bicycle innovation. In short: patents provide good tactical leverage for large firms to use when negotiating with each other, but are mostly irrelevant/ineffective for individual inventors.
Also if you're afraid of the imaginary patent police, keep in mind:
Patents: legal ownership of a technique/design/tool
Copyrights: legal ownership of creative material (video, writing, music, etc.)
Trademarks: legal ownership of a brand: a legitimate claim that a product was produced by a certain company.
At the moment, at least in the US, it's the copyright police which are scary--not the patent police.
It depends on what you mean by "modify."
Say, the patent covers doing A, B, and C.
If by modifying, you add step "D", you still infringe; however, if by modifying you can eliminate one step, say, B, then you don't infringe.
Example. Say you buy a bike that has a patent to move the back wheel via a chain.
If you add a headlight to the bike you still infringe. But if you replace the chain with something else, say a motor or a wire, then you don't infringe.
By the way, there are multiple companies that modify and rebrand existing products (e.g., it is extremely common in TVs); however, they typically sign a licensing agreement with the original manufacturer. In most cases, the original manufacturer may be willing to add the specific modifications as well and manufacture specific SKUs for specific customers.
Say, the patent covers doing A, B, and C.
If by modifying, you add step "D", you still infringe; however, if by modifying you can eliminate one step, say, B, then you don't infringe.
Example. Say you buy a bike that has a patent to move the back wheel via a chain.
If you add a headlight to the bike you still infringe. But if you replace the chain with something else, say a motor or a wire, then you don't infringe.
By the way, there are multiple companies that modify and rebrand existing products (e.g., it is extremely common in TVs); however, they typically sign a licensing agreement with the original manufacturer. In most cases, the original manufacturer may be willing to add the specific modifications as well and manufacture specific SKUs for specific customers.
Ajoy Prabhu, I cook, I travel, I photograph, I eat... (more) I cook, I travel, I photograph, I eat. Google me. :)Yes. Assuming it is a design patent that the product has, buying only gives you the right to use the product and not to redesign and sell it. You can of course take a sub-license from the original manufacturer if you believe that your product is dependent on the product you bought.
This question brings up many issues. For example:
1) Does the modification leave the products within the scope covered? - The answer will depend mainly on what is claimed in the patent.
2) Have the patent rights been exhausted by the reselling in the modified form? -
This generally depends on whether the first sale has been an unrestricted one.
3) Have you bought the product or just a license to use it?
1) Does the modification leave the products within the scope covered? - The answer will depend mainly on what is claimed in the patent.
2) Have the patent rights been exhausted by the reselling in the modified form? -
This generally depends on whether the first sale has been an unrestricted one.
3) Have you bought the product or just a license to use it?
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