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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Who owns "a manufactured second" still in the possession of

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Who owns "a manufactured second" still in the possession of the seller after the order has been filled?


My name is XXXXX XXXXX I will be assisting you with your legal question.

Can you explain more about the context of your question?

What is being manufactured?

Is there intellectual property involved with the item being manufactured?
Customer: replied 3 years ago.

Microfiber clothes with advertising are being manufactured. Sometimes the print will blur/ink will run. We don't ship them to the buyer but we have an opportunity to resell them "as is". The buyer is satisfied with the delivery but we maintain possession of the "2nds".

Does the advertising belong to the buyer? (i.e., is it the buyer's artwork or the buyer's trademark)?

When you say that the ink has blurred or run, is the advertising still recognizable in any form?
Customer: replied 3 years ago.

We create the artwork, it is approved by the buyer and sometimes there may be a trademark on the finished product.

There are instances when the advertising is not recognizable and at other times it is but the product is not acceptable to the buyer for any number of reasons.


This is an interesting situation. Interesting because it falls into a bit of a grey area. The trademark is obviously owned by the buyer. Whether the artwork belongs to you depends on the exact language of your contract with the buyer. You were hired to produce the artwork on behalf of the buyer, but if there is no specific language in the contract regarding the ownership of the artwork, i.e., something which says that the artwork is a "work for hire", the artwork belongs to you.

The manufacturer owns the clothing, but it may not be able to sell the shirts for profit without some sort of release from the original buyer because the shirts have trademarks on them. If the trademark is completely unrecognizable, then the manufacturer has the right to do whatever it wants with the clothing after it has been rejected by the buyer.
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