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How to Sell Licensed Merchandise From Your Cart

August 7, 2007 at 2:46 pm | In Business Ideas | 68 Comments | Get this via email

This morning I received an email from a cart retailer asking me the following questions about licensed products.

How do you get started selling licensed products from a cart?
Can you manufacture your own licensed products?
How do you know if the company you're buying from is legitimate?

Most cart retailers that I've talked to generally start by buying licensed products from a reputable wholesale company (a good start, because the wholesale company has not only already negotiated the rights to use the team logo, they've also mass produced the item). There are many companies in the pages of our magazine who offer great licensed sports products.

To his second question (can you manufacture your own)… In order to do this you need to get permission from the league (football, baseball, hockey) to use their logo. It's my understanding that once this is granted, you pay an upfront royalty fee to them and an ongoing percentage of sales.

I know it's quite difficult to get permission. Your product must be unique (i.e., not a baseball cap, or product that they have already given the rights to someone else to produce).

That's why so many cart retailers do not produce or manufacture their own licensed products. They turn to wholesalers who have already done all of the work.

And make sure you're buying from an authorized distributor. Look them up, do your research… you don't want to find yourself in any legal trouble.




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  1. Great blog! I am RSS'ng everything as we speak!

    And, thanks for answer us so quickly….

    As for Hatworld/Lids…….hatworld in Indy was opened by 2 guys from foot locker WITHOUT financial backing…..That was my question, not how to manufacture the goods w/o the licenses….

    My 2nd question was supposed to be, "How did Hatworld buy licensed hats for sale on their first/kosk?" But, you answered it perfectly in your first answer!!!

    Thanks again for your help!!

    Tim

    comment by Tim — August 8, 2007 #

  2. I met the guys from Lids when they were getting started and they had a private investor–that's what I meant by financial backing.

    One of the three most important things in starting a business is making sure you have working capital to buy what you need to get going (i.e., inventory, staffing, rent). If you need additional money, you should meet with some of your local banks and explore and SBA backed line of credit. The paperwork has become much easier and it's a relatively fast process. Or, you can look for investors and give up a percentage of your business.

    Good luck with everything! Hoping you'll keep me posted on your progress.

    comment by Patricia — August 8, 2007 #

  3. Specialty Retailing Tip…

    The Specialty Retail Expert has a post up detailing tips for selling licensed merchandise from a cart.
    This morning I received an email from a cart retailer asking me the following questions about licensed products.
    How do you get started selling li…

    trackback by Retail Traffic Court Blog on Retailtrafficmagazine — August 8, 2007 #

  4. If i want to sell NHL merchandise and NHL team merchandise, how do i go about doing that? Do I need a license and how do i obtain one? Is it different for selling online and in stores?

    comment by Mark — February 23, 2009 #

  5. As a retailer, you don't need a license to sell licensed sports products. It's the manufacturers who need to negotiate the rights. Here's how it works for manufacturers : The manufacturer contacts the sports team and finds out if they can create a particular product with their team logo. The sports team is VERY specific about the kinds of products that they'll give the manufacturer the rights to produce. Once they agree on the type of product to be produced, the manufacturer then pays a hefty fee to secure the rights, then usually continues to pay royalties every time a product is sold with their logo.

    As a retailer, when you pay the wholesale price for merchandise, the licensing and royalty fees are built into cost of the goods.

    comment by Patricia Norins — February 23, 2009 #

  6. where do I find an "official" list of authorized wholesalers for the NFL? I've tried their website, emailed their business site, but no response….how do you know a wholesaler is the first in line, or just another wholesaler in the channel?
    thanks,
    Jay

    comment by Jay H — October 8, 2009 #

  7. Patricia – This is a very informative post! Thanks for all of the information, but I was wondering if you could help with my related question as well. Can you take licensed NCAA material from a fabric store and decorate pre-made apparel (put a patch on a skirt) without obtaining a license or permission? I see other small businesses around town selling these products. Thanks! Liz

    comment by Liz D — December 5, 2009 #

  8. Liz, that's an interesting legal question! While the fabric company already purchased the rights to use the team logo, you're then taking the fabric and putting in on another product for sale.
    I'll touch base with our attorney and let you know you–stay tuned.

    comment by Patricia Norins — December 8, 2009 #

  9. do i need a license to sell other licensed goods such as didney, dora or other characters

    comment by chinquita — February 7, 2010 #

  10. i mean disney porducts sorry for the era

    comment by chinquita — February 7, 2010 #

  11. We currently have a party pack website where we sell party supplies and are looking at branching into some licensed products (ie. batman and spiderman plates and cups etc.) do we need to negotiate with the company (DC comics/marvel) if we buy wholesale and then resell on our website? Thanks

    comment by holly berry — March 13, 2010 #

  12. i want to resell different gps products like shoes ,spy devices and medical bracelets from different companies do i need to be licensed or what step do i needto take

    comment by vam — April 30, 2010 #

  13. Got a GREAT idea for an NHL product, who do I have to pay off first? It is team specific to begin with. Where do I start? THANK YOU!!

    comment by DetroitFloyd — May 12, 2010 #

  14. DetroitFloyd,

    If you're buying the product wholesale you won't have to pay to license the merchandise. Yes, wholesalers sell merchandise that is team specific. I would suggest subscribing to our magazine Specialty Retail Report–it's loaded with really great licensed products.

    comment by Patricia Norins — June 1, 2010 #

  15. I am interested in selling a product i created for the NFL, MLB & NHL using their logo's. Who would I contact for permission to do this?

    comment by Deb Wik — June 27, 2010 #

  16. Hi Patricia,
    While browsing your blog on licensed merchandise, I found a posting on which I am looking for the reply. You responded to Liz on Dec 8, 2009 on her post as to whether you need permission to sell licensed materials if you incorporated them into your own product; "you're then taking the fabric and putting in on another product for sale.
    I'll touch base with our attorney and let you know you–stay tuned."
    I have a similar situation and am wondering what the outcome was.
    Thank you!

    comment by Terri — August 9, 2010 #

  17. I am making game boards and i was wondering that if i make the boards and buy team decals with the logos on them is there any kind of legal procedures that need to followed. Can i get in any kind of legal trouble for selling the product that i make with these team decals on them. P.S. decals will be college and nfl if this matters.

    Thank you,

    comment by Curtis — September 10, 2010 #

  18. I have the same question that has been asked by several people. Is it legal to buy a licensed decal (national or collegiate)from Win Craft or similar store, apply that decal to a product I made and then sell it to the general public?

    comment by Kathie — October 11, 2010 #

  19. Is there a response yet to this question that has been asked previously?
    "Do you need a license or permission to sell items that you make from Licensed NFL fabric that you purchased from a fabric store and then make a clothing item out of it and sell it.

    Thanks

    comment by Jami — January 16, 2011 #

  20. Hi Patricia-
    I just found your blog and was wondering if you found an answer to Liz and Terri's questions. I'm in a similar situation and would like to buy licensed fabric and make apparel to sell at craft fairs.

    comment by Marcie — January 18, 2011 #

  21. Marcie,

    Actually we're in the process of researching this with a copyright attorney. Stay tuned for the answer…

    comment by Patricia Norins — January 20, 2011 #

  22. I was thinking of making an NHL themed product using various team logos. Where would I be able to get permission to use these logos and approximately how much would it cost?

    comment by OilersKing — July 5, 2011 #

  23. If I have a product manufactured then get an agreement with a retailer or wholesaler that sells licensed goods, who pays for and supplies the license?

    comment by Tracey — September 15, 2011 #

  24. I have a similiar question to the one outstanding with a twist. Can I heat press licensed images onto T-shirts without a special license or specific permission? For e.g Bud Light logo

    comment by Richelle — September 28, 2011 #

  25. I'm curious where the limit is for products that obviously refer to a team, but don't use the logo. Example: Packers fans welcome in green and yellow sign. Is that permissible according to the NFL? Reason I ask. I'm aware of a manufacturer right now that is producing and selling these without license for all NFL, and many collegiate teams. What exactly is the boundary? Remember when there was an enormous legal battle over the marketing rights to "Who Dat" when the Saints went marching to the Superbowl? The NFL claimed they owned it, but lost in court. I'm curious, and would like to warn this company before they end up in a legal battle they can't possibly win.

    comment by evelyn — November 11, 2011 #

  26. How can I find manufacturers that already have NFL, MLB and NCAA licenses? Do these manufactures only produce products they have developed or will they/can they produce for others and apply the logos? Thank you.

    comment by Susan Zelasko — January 20, 2012 #

  27. I would like to know… If I make my own bracelets and put team logos on them, can I sell them like this… Example. All bracelets are $29.95 and come with a FREE TEAM LOGO of your choice? Thanks.

    comment by Sean44107 — March 28, 2012 #

  28. Hello,
    I been unable to find wholesalers that sale licensed college and professional sports apparel. I also been unsuccessful in finding drop ship companies for licensed sports team apparel.

    Marcus Momon

    comment by marcusmmomon — March 28, 2012 #

  29. Everyone,

    This conversation is going around and around. There are three, well defined options:

    The product channel is defined as such:

    Manufacturer to Wholesaler/Distributor to Retailer/Etailer to Consumer. If you are any of the above EXCEPT the manufacturer, you are buying licensed product and can sell it anywhere.

    If you are the manufacturer, you MUST obtain licenses from the various teams/leagues. There are also companies that do this for you. Just Google it.

    Oh, and if you try creative ways around it by sewing licensed fabric or placing licensed stickers, etc, you will end up in court. These images are very, very, important to the respective teams and leagues.

    comment by David — April 13, 2012 #

  30. Hello,

    Maybe someone can help. I have a product that I invented that goes on the rear of a Camaro. I have the utility & design patents on such. I want to print the word CAMARO & SS on my product. I dont sell thousands of these but do you think that Chevy would come after me and if so how do I avoid it?

    comment by Scott — February 26, 2013 #

  31. Hi, so if I am a retailer who sell stuff online and I buy products from a licensed manufacture, I don't need a license , but they do. How do I know that they are Licensed? Do I ask them for their license number?. and do I put their licensed number on the product I am selling?. If a buyer get at me, I can just give them the manufacture number? how does it work?

    comment by TinaD — March 14, 2013 #

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