Repackaging a manufactures products for resale, what problems will that create??

Capt. Quirk · 2012-07-10 13:10

I have 2 different products that I want to pursue, but I suspect their may be legal ramifications.
Either way, I simply don't know if I can do what I want to do. So I am looking for advice.

1) I want to repackage some 12oz bottles of "Snake Oil" into 1oz and 1/2oz bottles to resell to model airplane,
car, and boat owners that use glow and gasoline engines.

This company is out of business, and some other overseas company bought up the remaining inventory. However,
I don't know if they bought the formula to produce it, or if there is still a patent holder for the product formula?

2) The second product requires modifications to the original product, in order to fit a Basic Stamp or Propeller to control it.
Unfortunately a kit, for the buyer to install isn't a good idea. I think that would be to complicated for the intended buyers.
The company that manufactures the product is European, and private labels it for an USA toy company. But the US distributor
can also sell the product.

I know the US distributor, despite this, I am still not sure how to proceed.

Any suggestions would be appreciated.

Thanks

Bill M.

Microcontrolled · 2012-07-10 13:17

When I read that you wanted to repackage and sell "Snake Oil" I thought for sure you were joking.

(Google "Snake oil salesman" if you don't know the term)

Phil Pilgrim (PhiPi) · 2012-07-10 13:17

Just to be sure I understand your intent, you're asking legal questions in a technical forum, correct? There has got to be a more informed audience elsewhere for that kind of stuff than we are. 'Just sayin'.

But I guess stick around anyway for the flood of uninformed opinions you're likely to receive here.

-Phil

W9GFO · 2012-07-10 13:41

Uninformed legal advice from someone that is not qualified to dispense legal advice;

Just add a drop of something or other to the snake oil so it is your own unique formula. Then it is your own recipe, problem solved!

NWCCTV · 2012-07-10 13:59

OK, So let's see if I can be of assistance here. I am a Computer/CCTV Reseller. I purchase products from suppliers and "Resell" them. Most computer items I build, but the cameras that I sell I do not modify in any way. This is 100% legal and just IMO, if you are a licensed reseller you should not have to modify anything. If, however you are actually creating the "Snake Oil" from someone elses patented recipe and selling it as your own brand, then that would be illegal. Once again, IMO.

Capt. Quirk · 2012-07-10 15:07

I am in no way legal opinions, just opinions.

The Snake oil is a Teflon oil treatment similar to Slick 50 engine treatment and like I said
that company went out of business, and all that remains is the unsold product in someones warehouse.

markaeric · 2012-07-10 15:45

My poorly researched opinion:

So many formulations are trade secrets, and therefore never patented. Example: Coca-Cola. Now you could legally make a soft drink that tastes exactly the same, but of course, you wouldn't be able to use Coke's trademarked name. If the additive you're talking about is patented (probably not), then your formulation would need to be slightly different (not sure how much), unless the patent is expired. Of course, you could keep your version a trade secret, and probably not have to worry about it. Though one has to wonder, is there even a worthwhile market for the product? They company may have gone out of business for just that reason.

Ken Gracey · 2012-07-10 17:17

Lawyers, patents and related issues aside, if you have bad intent or you've stolen something then you would probably encounter a legal problem.

But you haven't done that. And you're not alone. Sounds like you're rescuing some material from an environmental disposal process and repurposing it for its intended use.

Almost reminds me of the feeling I've had helping my kids with their firewood business. They're too young to work, they don't pay taxes, they have no contractor's license and they don't have any insurance. But they love to sell firewood and they learned about the value of a dollar. At times, these issues seemed larger in my head than they are in life. Following the law it's not legal to have kids engage in such a business. If we don't allow kids to work in some way they're just going to learn how to work when it's too late...maybe in a big, boring corporation where you fall asleep at your desk each afternoon but you have to stay there anyway.

Capt. Quirk, I ain't your lawyer. And if you have one they'd tell you not to do anything and any profit would be spent before you put the idea into action. Sounds like putting this "material" to work as intended is probably better than disposing of it legally.

Seems like we're all concerned about doing business for one reason or another. Let's manufacture, create, sell, invent and trade like we used to!

GordonMcComb · 2012-07-10 19:37

The legalities of reselling X product aside, if this stuff is at all toxic you need to provide an MSDS sheet, and if it has Teflon like Slick50, meet a bunch of testing standards. The original manufacturer went through these steps, and if you repackage and rename you'll need to as well. Sounds like a hassle to me.

Seems to me you'd want something in writing limiting your business risk if the company that now owns the remaining inventory does not actually have the right to sell it in its original form. Did they only buy recycling rights, but are now trying to palm it off unrefined for a higher profit? Are you sure this is Grade A stuff, or is it reject that'll ruin engines? Stuff you need to know. Like Phil sez, 'just sayin'.

-- Gordon

Capt. Quirk · 2012-07-11 01:14

Thanks Guys, Good Advice.

I was so disappointed when this company went out of business. My Dad sold it at his Napa auto parts store,
I thought it was just snake oil at first. Mainly because Slick 50 sold 2 ounce bottles, and I never saw a benefit.
But we used this companies product in our cars because it was a cheap gamble. But when I started using it
in Zenoah model airplane engines, I saw instant results. Now our cars have 250 to 300k miles and still run
great. At least I know for certain it works in RC engines.

GordonMcComb:
The MSDS issue is most likely the reason why it wasn't bought by another U.S. company in the first place.
And you're right, I need to know the other details too.

Bill M.

erco · 2012-07-11 10:36

Ten years back, someone local was selling gag "pills" which were simply a roll of Lifesavers candy with a custom label on it, like "Dr. Fozwanger's Anti-Nose Picking Pills" and such. I thought it was clever, since they sold for $4 at the mini marts. Pure profit, hardly any work involved. Now had someone gotten sick or died from product tampering (anyone recall the Tylenol murders?) there could have been serious liability issues for such a simple concept. http://en.wikipedia.org/wiki/Chicago_Tylenol_murders

GordonMcComb · 2012-07-11 11:11

erco wrote: »

Now had someone gotten sick or died from product tampering (anyone recall the Tylenol murders?) there could have been serious liability issues for such a simple concept.

I think this dovetails back to what Ken was saying. Many legal hurdles these days. Your kids can't even set up a lemonade stand on the street corner for fear of the parents getting sued if someone gets a little tummy ache afterward.

Note this isn't simply because of trial lawyers or government regulation. The general public has become greedy. They're looking for an easy payout. You tap someone's bumper in the McDonald's line, and they scream they'll sue for whiplash.

-- Gordon

Repackaging a manufactures products for resale, what problems will that create??

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