Q: If I buy a trademarked item from a licensed seller can I use that item in the product I create and sell it?
I am buying the insignia for a military branch then affixing it to a wooden flag, then selling the flag. The company I am buying the insignia from is licensed to sell them.
A: Sounds like you mistook trademark with patent. Trademark is brand and patent is ownership of a certain design or method. A product is trademarked does not mean you cannot use it unless you obtain license. On the contrary, If a product is patented, you must obtain a license.
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