Is it legal to sell another company's products if the product is already available on the market?

ByNina Kaufman

Opinions expressed by Entrepreneur contributors are their own.

I would like to start a cafe in the California area, but I want to use packaged mixes from a cafe in another state to prepare my coffee and pastries. Do I need a license or approval from the cafe to profit from its mixes?
You do not need a license to use the other company's mixes unless you intend to advertise your products using the other company’s name. For example, if you were to use Quaker Oats' oatmeal mix in your oatmeal raisin cookies and you wanted to tout the cookies as being extra special because you used the mix among the ingredients, then yes, you should obtain a license from Quaker Oats.

The reason is that you would be trading off the name and good will of Quaker Oats in trying to entice people to buy your product. However, if all you wanted to do was use the ingredient (without the advertising component), you could walk into your local supermarket, buy the stuff and use it.

However, if you contacted Quaker Oats directly to work out an arrangement, you might get a better wholesale price.
Wavy Line

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under herAsk The Business Lawyerbrand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes theMaking It Legalblog.

Editor's Pick

Business News

Kristen Bell and Dax Shepard's Family 'Stranded' at Boston Airport During 9-Hour Delay: 'We Made Quite a Home Here'

The actors spent $600 on pillows and blankets while waiting for their flight.

Science & Technology

This Is the New ChatGPT Trend That Will Enhance Your Business

ChatGPT plugins are becoming the new cool trend among entrepreneurs to enhance their businesses and engage more customers. Here are some insights into how they're impacting business enterprises, along with some potential risks that may accompany the benefits.

Business News

Netflix is Hiring an AI-Focused Role—and the Starting Salary is up to $900,000

The streaming giant is looking for a leader in its machine learning department.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.