Q: I bought licensed scrapbook paper with college logos on it. I'm cutting out the logos to make keychains with.
I want to sell the keychains on the internet. Is this legal or do I need to obtain permission from the universities whose logos I'm using? I have done a little research on this and it really seems like a grey area. Some sites say you absolutely need permission - others state that once the licensed product is bought you can make whatever you want out of the product to sell - something about a "first sale doctrine" from 1908! In other words the licensed company who purchased the license and made the officially licensed product is the only person/entity bound by the copyright laws. Additionally I have read that you can sell products with the college logos as long as you post a disclaimer stating you are not affiliated or licensed with the university, but that you used officially licensed material (that you purchased legally) to make your product. I'm also wondering if changing the original form of the purchased product makes selling it acceptable because you altered it before sale?
A: You need to obtain permission from the trademark owners. The first sale doctrine would likely protect you if you resold exactly what you purchased, the scrapbook paper. If you use the paper to create a new branded product, you would not be protected by the first sale doctrine. Also, using a disclaimer will not protect you from trademark infringement if you are creating a new product with the trademark of another (even if you cut the logo out of another product). Many universities aggressively police their trademarks. Before selling any university branded products, it would be best to consult an attorney.
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