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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I want to sell a product that may infringe on existing design

Resolved Question:

I want to sell a product that may infringe on existing design rights/patents. If i sell the product successfully, for example let say 2 years, and then get taken to court, what is the likely penalty and could i just close the business to avoid it?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
The trademark holder could seek an order against the company to account for any profit made. But if it is a limited company there is nothing they could do personally.
As long as you are not selling counterfeit goods Trading Standards is unlikely to do anything against you personally. Breach of copyright is against the owner of the mark and the company.
So make sure it is a limited company. Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

Thanks. Your answer is in relation to trademarks. This is more to do with design and patent infringement. Does the same apply?

Expert:  Ash replied 2 years ago.
Yes it's still intellectual property.
Does that help?
Alex
Customer: replied 2 years ago.

So just to clarify..

Step 1 - Register product under different brand name and sell via limited company

Step 2 - Legal action taken by copyright/patent holder

Step 3 - Close limited company and retain profit

Step 4 - No further action can be taken against limited company or directors

Is this correct?

Expert:  Ash replied 2 years ago.
Correct. It's only if it's fraud can they go after you personally.
Alex
Customer: replied 2 years ago.

What could be deemed as fraud in this scenario?

Expert:  Ash replied 2 years ago.
Fraud is something dishonesty. I can't give exact examples.
Alex
Customer: replied 2 years ago.

In the eyes of the law is copying someone else's product and selling it under a different brand name classed as fraud or counterfeit?

Expert:  Ash replied 2 years ago.
Counterfeit maybe yes. You said it may infringe, not that you are copying. Outright copying is different.
Alex
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex