As a NZ business owner, you may be concerned about the reselling of your existing products. It can be difficult to prevent such an act, especially if a customer has legitimately purchased your product from your business. Additionally, your business cannot lessen the competition in the market, making it harder to prevent such actions. Otherwise, you and your business may potentially be in violation of the Fair Trading Act. This article will outline whether you can prevent people from reselling your products and measures you can take. <\/p>\n\n\n\n
Currently, the market has many reselling businesses and online marketplaces for reselling with TradeMe and Facebook Marketplace. Resale rights are an essential component of commerce, as they determine whether a person can sell or distribute a product that they have legally acquired. In New Zealand, the concept of “exhaustion of rights” applies to the resale of products. According to this principle, once a product has been sold legally, the purchaser generally has the right to resell or distribute it without the consent of the original manufacturer or seller.<\/p>\n\n\n\n
This means that, in most cases, you cannot prevent individuals or businesses from reselling your products in New Zealand once you have legally sold them. However, there are some exceptions and strategies to protect your brand and products.<\/p>\n\n\n\n
Usually, the reselling of products that include copyright material does not infringe your copyright if the material is legitimately acquired. However, you can control the sale of your copyrighted material through distribution agreements. A distribution agreement outlines how specific parties can distribute or resell your products. This agreement can restrict your reseller from selling your products to unauthorised third parties, thereby controlling the resale of your products. Key terms can include:<\/p>\n\n\n\n