I'm starting a business where I will be reselling party supplies for
children's birthdays. I will be buying merchandise from party stores,
websites, etc and putting the stuff into themed kits. Kits include
generic themes like butterflies or pool parties and specific themes
like Dora the Explorer and Sesame Street. I know that I will need a
business license to sell merchandise from companies like Sesame
Workshop (PBS), Nickolodeon (Viacom) and Disney. I can't find
information on how to do this. I need to know who to contact, what
will make my company appealing and one in which they would provide a
license, how much license cost, etc. I've looked at all the websites
and can't find contact information or licensing information. Also, I
know I can go through a lawyer but would like to not have to if
possible. Since I can't start selling I'm currently not making any
money so please take that into consideration. My company is at a
stand-still until I can figure this out. Help!!!

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Request for Question Clarification by kriswrite-ga on 14 Jun 2004 09:06 PDT

Where will your business be located?

Thank you,
Kriswrite

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Clarification of Question by erast00-ga on 14 Jun 2004 11:30 PDT

I live in MA so the company is based out of my house but I'll be selling nationally.

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Request for Question Clarification by kriswrite-ga on 14 Jun 2004 11:52 PDT

Perhaps the confusion is this: To buy such items wholesale, you'll
need a business license from your area. If you'd like information on
how to obtain such a license, please let me know what country you
reside in.

Regards,
Kriswrite

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Clarification of Question by erast00-ga on 14 Jun 2004 18:18 PDT

Okay---thanks for your questions of clarification, but I think the
error might be my saying "business licenses" Perhaps that's not the
correct term. I live in MA and can legally sell there and all over the
US. I've obtained licenses in my town, my state, and with the IRS. I'm
trying to figure out how to sell products that are trademarked. For
instance, one of my parties is Sesame Street. I'll be going to local
stores and buying Sesame Street merchandise, putting it in a box, and
selling it to people. It is my understanding that it is not legal to
do that without Sesame Workshop's written permission. I  need to know
if that is true and if it is how do I become a viable candidate for
such a license since I'm sure they are selective about who they give
them out to. Also, I need (and can't find) appropriate address and
contact people at Sesame  Workshop, Nickolodeon and Disney. Please let
me know if there's any other info I can provide to clarify this
matter.

Hi,

Why is it you believe you need a business license to sell this themed
merchandise?  I ask only because it may help someone develop a more
complete answer if they knew form whence that belief originated.  I am
curious also because under US trademark law, you?re free to resell
products featuring third-party trademarks without a license from the
trademark owner. In other words, if you lawfully obtain authorized
Nickelodeon, etc., merchandise, you are free to package or bundle all
the items together and resell them using some or all of the marks
featured in the bundle.  The classic example is a used car
dealership--they are clearly not an authorized Ford dealer, but they
buy and sell Ford cars all the time, using the "Ford" trademark in
their advertising.

Hi again--one of the leading US cases, Sebastian International v.
Longs Drugs, is very helpful.  There's a good summary at
http://www.ladas.com/BULLETINS/1995/1195Bulletin/US_FirstsaleCollectMark.html.

Is this true? I was under the impression that the exact opposite is
the case. Believe me, if you are correct I will be the happiest person
in the world! First of all, why do you think this? Second, you said if
I lawfully obtain authorized merchandise: does it count just buying it
from a store or do I need the stores approval? I've asked so many
people, including a business lawyer, and I've been told by everyone
that I absolutely need a license to sell trademarked merchandise. It
even says on their websites "nothing on this site may be copied,
reproduced, republished, uploaded, posted, transmitted, or distributed
in any way without writeen consent." Curious where your information is
coming from and why you think that...

Well, it's a settled legal principle called the trademark first sale
doctrine.  There are analogous principles in both copyright and patent
law.  The doctrine holds that if you lawfully obtain a trademarked
article, you are free to resell it without a trademark license because
the trademark owner?s right to control sale of the marked items is cut
off at the first sale level, i.e., the person from whom you bought the
article.  So yes, if you buy them in a recognized store from reputable
sources (such that you would have no reasons to believe they are
pirated or counterfeit), the trademark owner?s rights to control the
sale of the marked items is cut off and you can resell them, using the
marks, without a license.

An exception occurs if you are using the marked items in such a way
that your buyers would think that there is an affiliation or
sponsorship between the trademark owner, e.g., Nickelodeon, and you. 
So you could not bundle the items and say on the packaging, "This fun
bundle is brought to you by Nickelodeon and erast00!"  But you can
say, "This fund bundle contains Nickelodeon (R) Slime."

The doctrine is also called "exhaustion."  See the discussion on
trademark exhaustion at
http://www.iusmentis.com/trademarks/crashcourse/limitations/.

<<It even says on their websites "nothing on this site may be copied,
reproduced, republished, uploaded, posted, transmitted, or distributed
in any way without written consent.">>

I am sure that ~is~ what it says on their web sites.  But downloading
an image or a jpeg or a logo from a website is very different from
buying an article from an authorized source and reselling it.  If you
were to download the Nickelodeon logo off their site and reproduce it
on t-shirts and sell them at a flea market, that would be obvious
trademark infringement.  But you're not doing that, so as long as you
stick to the facts as discussed in this thread, I am not sure I can
see why you'd need a license.  Why did the business lawyer say you did
need a license?   Perhaps you should ask the lawyer to review
Sebastian International v. Longs Drug Stores, 53 F.3d 1073 (9th Cir.
1995) (he or she will be able to retrieve it using that "citation"
after the case name.)

Dear erast00,

I am not a Researcher, so perhaps you are watiing for a final answer
from kriswrite or another Researcher.  But in reference to your 14 Jun
2004 18:18 PDT Clarification in which you say, "It is my understanding
that it is not legal to do that without Sesame Workshop's written
permission. I need to know
if that is true and if it is how do I become a viable candidate for
such a license," I am fairly confident my June 14 comments, all of
which were posted prior to your 4 Jun 2004 18:18 PDT clarification,
accurately recite current US law on the subject.  As you know, Google
Answers is not a forum for formal legal advice, and so I would
encourage you to now go and validate my comments with your trademark
attorney.

Best of luck with your project,
ipfan