This is an excellent question! One threshold question is the original product protected by patents or copyrights. *COPYRIGHTS* For example - an IPhone or a smartphone using WORD. The copyright owner has rights to all derivative works. Accordingly, it will be problems with modifying these types of products and reselling them. You may be able to negotiate a license of the copyright with the copyright owner. *PATENTS* When you buy a product from an authorized distributor/dealer, the buyer has an implied license to use the product for the purpose for which it was made. So, for example, if you are building a pair of glasses with a radio built into the radio, you buy the pair of glasses from an authorized dealer and you buy the radio from an authorized dealer, and you modify the radio to combine it into the pair of glasses, neither the seller of the radio nor the seller of the pair of glasses can sue you for infringing their patents. You have bought their products from authorized distributors. They have been paid. However, there are several other issues that you will need to consider. Someone else may have patent rights for the combination of a radio and a pair of glasses and you may be infringing on this person?s patent. Also, you may be entitled to a patent for your new product. You must apply for the patent before you start selling your product. A patent search would be most useful here. I recommend that you seek the advice of counsel before moving forward. There may be some real opportunities here, and you need to proceed in the proper manner. I hope that this has been of some assistance.
Answered on Jun 18th, 2013 at 9:55 AM