Startups Stack Exchange Archive

Aerosol Product Labeling and Description

Is it illegal to basically copy another company’s product label but simply changing the name of the product a little? Basically the new label would look identical to the other established company’s product label.

In the product description in the new catalog, can you use the same description word for word (except for the product name which would have the new name used in the product description) as the other established product?

There would be multiple products and labels used which are basically copying the older company’s products. The older company is well established and is a large company that might not notice these products being used by a smaller company. But if they do discover it, are there potential or actual liability issues to the new company for using basically the same labeling, almost the same product name, and exact same wording in describing it’s product, as would be found on the larger company’s corporate website for each of their products that they are currently selling?

Thank you.

Answer 11139

What you describe is breaching copyright in the label design, marketing collateral, and catalogue copy.

You also breach consumer protection laws around passing off your goods as another’s.

Then you get into the breach of trademarks both registered and unregistered.

In copyright and trademark disputes you’re up for actual damages plus legal costs. If copyright is registered in USA they can claim punitive damages. I think that a registered trademark in the USA is also required for punitive damages for trademark infringement. Note that neither trademark nor copyright must be registered for it to apply.

For the consumer protection laws you could also face criminal proceedings depending on your jurisdiction.

The lawyers fees alone would be crippling.

A judge could also order all your counterfeit products seized and destroyed at your expense.

Lastly as this is Startups and not Law SE your potential business valuation would be below your asset base as the contingent liabilities would require discounting.

If the original manufacturer is a large multinational with a US two things will happen

  1. They will find you. They have merchandisers in the marketplace looking at competing products.

  2. They will start to lobby the government to criminalise your behaviour just like counterfeiting and piracy are.

Any country that has signed a free trade agreement with the US will be bound by those same laws.

So expect the original company to push to have you and your employees treated as a criminal enterprise and them to come after you with RICO


All content is licensed under CC BY-SA 3.0.