Trademark Infringement

To oversimplify, the problem with your proposed business is that the items you are selling are not, in fact, licensed by the trademark owner. Your proposal to combine a licensed product with something else leads to the likelihood that an appreciable number of ordinary consumers would be misled into believing that the entire product was authorized or sponsored by, or originated with, the trademark owner, which is not the case. That is the very definition of trademark infringement. The "seals" make the problem worse for you, since their very purpose is to indicate origin or sponsorship. Of course, it is perfectly lawful for you to resell the licensed items exactly as you purchased them without the addition of the chain. The key legal issue is whether the disclaimer is sufficient to negate the consumer confusion element. There are a number of conflicting cases that address this issue. In general, the effectiveness of a disclaimer may depend on the prominence of the disclaimer, how sophisticated the consumers are, how careful they are in making purchasing decisions, and other factors. A good starting point for this analysis is Prestonettes, Inc. v. Coty, 264 U.S. 359 (1924), and courts have generally found that properly prominent disclaimer on repackaged goods can mitigate a likelihood of confusion. Because of a lopsided upside/downside relationship in this kind of business for you, you will want to review your business plan, disclaimer and packaging in detail with an attorney before launching the business. If we can assist you in this review, please contact us.