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BizIPEsq.
BizIPEsq., Attorney
Category: Intellectual Property Law
Satisfied Customers: 996
Experience:  I am a tech attorney and I represent clients with technology, internet and intellectual property matters
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This isnt quite intellectual property, but I hope you can

Resolved Question:

This isn't quite intellectual property, but I hope you can answer a couple of related fairly simple questions. I have a large collection of very good knitting yarns that I want to get rid of. I could sell them as is on any number of sites. I can give them away , but what is the tax value? What would be most fun and most time consuming, would be to repackage the yarn in interesting combinations so that it knits up as though you are changing yarns. If I choose to do that, do I label the yarns used by brand and name (which would make the repackaged yarn more valuable because buyer's could see excellent brands), or do I simply list the information that would come on what's called a "ball band," i.e. the paper around the skein or ball (that would be kind of yarn--wool, silk, etc, --yardage--and few bits of info interesting only to knitters). Also, If I did this, would I have to become a company or can an individual do it? It makes negative financial sense to do this... it is time consuming, I would have to pay taxes instead of getting a write-off, etc. Still the project intrigues me and I'm curious about the legalities of reselling the yarn---it is sold all the time in the original packaging on Ebay and similar sites. Thank you
Submitted: 1 year ago.
Category: Intellectual Property Law
Expert:  BizIPEsq. replied 1 year ago.

BizIPEsq. :

Hello, I will be assisting you

BizIPEsq. :

Here are the answers to your questions

BizIPEsq. :

* if you sell the yarn you would need to pay taxes on the profit you paid between the purchase price and the sale price. If you give it away to a 501c3 non-profit you can deduct the value of the yarn off your taxes as charitable giving (the value could be their retail price)

BizIPEsq. :

* generally speaking you can re-label a product so long as you do not trademarks of the brand name to suggest that the repackaging was done by the brand and not by you. So you could create a generic label saying 2 yellow yarn balls made by XYZ, 3 red yarn balls made by ABC etc. But I would not imitate the look of a 'real' label

BizIPEsq. :

* You don't have to become a company to do this. You can be a sole proprietor. But be mindful that as a sole proprietor you do not have limited liability protection and it would be difficult to deduct certain operational expenses off your taxes.

BizIPEsq. :

* under the 'first sale' doctrine it is permissible to re-sale all product that is genuine and that has been purchased legally.

BizIPEsq. :

In conclusion, you will pay taxes on the profits, you can create your own label and reference the original makers of the but do not create a label that may be confused with the manufacturer's label, and under the 1st sale doctrine you are permitted to resell.

BizIPEsq. :

Thank you for allowing me to assist you

BizIPEsq. :

Please rate my answer

BizIPEsq., Attorney
Satisfied Customers: 996
Experience: I am a tech attorney and I represent clients with technology, internet and intellectual property matters
BizIPEsq. and 2 other Intellectual Property Law Specialists are ready to help you
Expert:  BizIPEsq. replied 1 year ago.

there is a software bug in the chat so I have been asked to switch to Q&A mode

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