Online Purchase and Resale
 

I noticed people purchased online from overseas and resales in singapore. Ok to do it??? Will get sue by local distributor??

Re: Online Purchase and Resale
 

It's called parallel import.

For licensed products, you may be sued. However, there were few cases (I read on newspaper) 2-3 years ago that the defendant won the case.

Re: Online Purchase and Resale
 

I heard about the news too. Ok. Last time I did the same thing. I bought products from Japan and sold in Singapore. I got apporval from the company itself. So it is ok.

Under law, if you buy products. It is counted as your property. You can do anything with it.

BUT if you buy hello kitty, you sell hello kitty. You might get sued. But come on! Flea market, pasar malam, bazaar and etc. Who cares about it. =D

But beta be safe than sorri.

Regards,
Takeshi

Re: Online Purchase and Resale
 

but what if i buy from wholesale then after i rec'd the product i sell it online or pushcart or maybe one day open a shop? is it ok?If not how to buy and sell things/

Re: Online Purchase and Resale
 

Hi Takeshi,

By getting approval, do you mean you have a contract the company?

Re: Online Purchase and Resale
 

Hi,

I also get japan/korean brand names to resell..haha...if those brands do not open any shops in singapore, it shld be ok?

Re: Online Purchase and Resale
 

Haha Takeshi are you talking about me?
But I am selling original ones too bad!

Re: Online Purchase and Resale
 

Just don't re-sell branded items like prada handbags but then again, if your customers find out that you are buying-reselling to them, then they might not buy from you again.

Re: Online Purchase and Resale
 

Alot depends on the appointment of distributor and actions by the brand ower actually. As lawyers we only take on cases that are initiated by the brand owners or the appointed Distributors.

A lawer friend told me that they are in the process of collecting information and evidence to prosecute several 'self-named' official distributor for Tenga.
the Tenga company in Japan only recognised one seller in the Singapore and Malaysia markets, but there are some online sellers and shop retailers doing the selling without the said rights.

so your question as to whether they will get sued depends alot on WHEN the offence is committed and the courts' actions (depending on how severe is the violation: mild = confiscation and a fine. severe = jail and defamation suits.

Another example, Hello Kitty. Yes you can resell the soft toy you had used and you label it as secondhand and it will be ok. But if you state that you are a distributor, then you are in trouble because you are misleading the public to believe that you are THE distributor. it will be worst if you have a website to state this as a fact as it will become evidence.

Remember tat the REAL distributor paid alot of money to get the licence, and invested money to bring the products in and had already spent money on advertising. If you are just bringing a product or a brand to sell - after the original distributor had brought it in BEFORE you - then you will definitely get sued.

the entire process can take some time because the suing company may originate from overseas and they require a local lawyer / company to act for them. so it does not mean that if you are not in trouble within 3 months you are ok forever. the lapse in time is also to allow the 'offender' a chance to stop their activities. A local distributor may deliberately withhold legal proceedings (under the pretext of evidence collection) so that the offense will seem more severe, and thus attract a more heavy punishment.

Sometimes it is better to do the right thing, not the profitable thing, you may end up loosing even more just to make a little money.


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DISCLAIMER: information above used for discussion only and should not be taken as represented legal information for any person or organization.
please consult your legal representatives for full legal advice.

Re: Online Purchase and Resale
 

Thanks Symphony for the detail explaination. I have one queries though. You mention that it is illegal for a person to purchase products from overseas and even claim that he is the authorise distributor.

May I know if I were to purchase branded bags from overseas (like USA), like Gucci, Prade & Coach and decide to sell them in a bazaar or event place in Singapore, is it allowed? If I do not claim that I am the authorised reseller or distributor, does that mean that it is legal to sell the bags here in Singapore?

I notice lately that there are a few vendors that are selling genuine branded bags in bazaar and my sister is considering to follow suit but I want to know whether this is consider legal or illegal. Thanks so much!

Re: Online Purchase and Resale
 

As long as you do not misrepresent your products, ie saying its straight from distributer, new item, etc, its fine. you can say its never been used, but its not new as you bought it from the store. Or as Symphony had said, misrepresent yourself as a distributor or reseller as the company did not authorise you to do that.

Re: Online Purchase and Resale
 

In my opinion, it is legal for anyone to sell branded bags in bazaar and event space. The only problem is whether the organiser would allow you to sell there as a vendor. Sometimes, especially for event space inside shopping mall, there might be some tenants there who might be selling the same type of branded bags and it will not be fair to let you join the event space because the rental for the event space is much much cheaper than the outlet itself.

If it is indeed illegal to sell 1st hand branded bags in Singapore, there would not be so many shops selling genuine 1st hand branded bags in Singapore inside shopping mall. It's a matter whether it's fair to them if you were to sell at an event space. Most organiser are very careful not to offend the retail outlets owner. Just my opinion.

Re: Online Purchase and Resale
 

This probably explain why so many people continue to sell illegally because it is simply not possible for the brand owners or the authorised distributors to capture all the illegal sellers. I have heard of shops being raided for selling fake branded goods but why do other shops "escaped"?

Question 1 - You said lawyers only take on cases initiated by the brand owners or the authorised distributors. If take the example of branded wears which many shops are selling, if LV decides to sue seller A for selling fake LV apparels, then will A be penalised for selling other branded items even though these other brand owners may not have taken legal actions may be because they didnt know.

Question 2 - Is there an organization or authority that is actually responsible for monitoring and curbing all these illegal activities? The police? :confused2: :o

Re: Online Purchase and Resale
 

what is said here is meant for discussion only so if in doubt, you should always check with your lawyer.

Now my understanding is this: if you bought one or two to resell, you may get away with it. In other words, you are just a individual seller. That small volume of sale will probably not attract the attention of the main seller (or the Distributor) in Singapore.

And imagine a scenario where you import 25 bags, set up an online ecommerce shop, sign up for Google PPC, have a PayPal account and the works. what do you think will happen?

As mentioned, the legal actions may already be initiated - ie, they start to collect information and at appropriate time (when they think you have earned enough money or placed a large consignment into Singapore, they will take action - the result: a stiff fine, confiscation, and maybe a jail sentence.

At that point, for your defence you have to answer questions like: "why did you choose to re-sell this brand, etc"
of course the only logical answer is, you "can make a lot of money with it cos you selling cheaper,..." You just dug your own grave!

In other words, you just take advantage of someone else's efforts (marketing, publicity, promotions) to make some money and you did not spend a cent on those. by that argument, shouldnt you now pay for some of that expenses since it is proven you sold and earn so much money already?

there are many products out there so for your sake and peace of mind, create your own label, or talk to the main manufacturer and ask them to let you carry their product properly.

if you just want some pocket money then just sell an assortment of branded stuffs and not focus on one brand that is most popular.

hope that helps.

Re: Online Purchase and Resale
 

Check the company website and "manuals" that come along with it. If they did state that it is not meant for sale/resale in other states/countries then you cannot do it.

If there isn't such a sign/tag, there is no "exclusive retailer" or "licensed retailer" in the region..I believe that it should be fine.

You must also be careful to state only facts or you can be sued.
Just my two cents worth, no legal training here.

Re: Online Purchase and Resale
 

Hi, I bought beauty device via online from china and they send me the product without any brand name/logo, just plain. Is it ok to use my own log disign on the product for resales in Singapore?