Legal Question in Intellectual Property in California

Private Label Clothing Resale

A clothing company claims themselves to be a ''Private Label Brand'' and claims that their merchandise cannot be resold for profit . Furthermore, they reserve the right not to sell to a consumer who resells their merchandise to protect their ''intellectual property rights''. The same company is also publicly traded on the NYSE so shouldn't that mean its not a private label?

Is this resale policy legally sound? Can they really restrict consumers from buying their merchandise (even if not for the purpose of resale but as a personal purchase?)

Asked on 2/01/07, 1:36 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Private Label Clothing Resale

Yes, the policy is defensible, and the fact that the company's shares are publicly traded has nothing at all to do with it......the policy is in furtherance of their trademark rights. Think of it this way. General Motors is a public company and their shares are traded on the NYSE, but GM's general office in Detroit is private property and when they lock the door at night, the public can't come in.

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Answered on 2/01/07, 9:06 pm

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