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MDLaw
MDLaw, Attorney
Category: Business Law
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Experience:  Experience in business law, contract law and related matters.
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I understand that normal clothing retailers can buy trademarked

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I understand that normal clothing retailers can buy trademarked clothing from brands wholesale and then mark up the price and resell the clothing as long as they have a sales tax id and reseller certificate/license. I am looking to start a business where I buy trademarked clothing from top brands (eg. Marc Jacobs, Kenneth Cole) and rent out this clothing to others for a fee. Am I even legally permitted to rent out and continue to profit from trademarked clothing? If so, would my rental business require any different licensure or permits than a normal clothing retailer and if so, what would that be? I am just trying to understand if this rental model is legally feasible and, if so, what legal measures are necessary to start this business.
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.
Hello and thank you for using the Pearl website. Please keep in mind that we can only provide you with legal information and not legal advice per the disclaimers shown to you on this website.
To clarify, are you asking if there are any laws prohibiting you from renting clothing? In what state are you located? Will this be a brick and mortar business? From where would you be getting the clothing?
Customer: replied 1 year ago.

Hello, I would like to know if there are any laws prohibiting me from renting out trademarked clothing that I would buy wholesale from a big brand (eg. Kenneth Cole) and what licenses/permits I would need to do so? It will be an online business located in xx state but servicing all states in the US. Thanks, xx

Expert:  MDLaw replied 1 year ago.
Thank you for the additional information.
When you buy wholesale from a company, many companies will require you to sign certain agreements. Therefore, you would need to ensure that the agreement between you and the seller does not prohibit you from renting out their clothing. With regards ***** ***** and permits, you would not need anything special other than the general licenses you would need to start a business. Every county is different in every state but you would generally need to be registered with the state for tax purposes and have a reseller certificate if you want to buy wholesale.
Please let me know if this has answered your question or whether you need any additional information.
Customer: replied 1 year ago.
Ok, I think that makes sense. Basically it is up to each brand/company and the agreements I sign with them? Assuming I operate within the bounds of the respective agreements, there aren't any state or federal laws I am breaking by renting out trademarked clothing, correct?The only follow up I have is, how does this change if I were to buy the trademarked clothing at retail? Am I legally signing any agreements with a company when I buy their clothing at a retail store that might prevent me from either renting it out or even reselling it?
Expert:  MDLaw replied 1 year ago.
I'm not sure why you are focusing on the intellectual property issues. You would only have an issue if you were not allowed to rent out that brand's clothing or if you were not stating what brand you were renting/selling and changing it or taking it as your own. There are no laws against renting out clothing if that is what you are asking.
When you purchase something at retail, you generally do not sign anything. There might be limits put upon you as to how much you can buy but so long as you are not selling anything fake, not committing fraud, following all tax and business law, not violating any written contract and agreements, etc. then there would be nothing illegal about reselling or renting out clothing. There are hundreds of businesses that currently do this, if not thousands.
MDLaw, Attorney
Category: Business Law
Satisfied Customers: 5828
Experience: Experience in business law, contract law and related matters.
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