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Reselling Items


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I live in California and am starting an oscommerce site selling my videos and artworks well as other peoples videos and artworks. My question is that if I buy a video from Ebay or I go into an art gallery and buy a work of art do I automatically have the right to resell it on my web site or do I need to work out a distribution agreement with the maker of the video or artfwork. Any advice appreciated.

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Buying a video doesn't generally give you distribution rights (copyright) - to copy and sell such works is generally known a 'pirating' and has severe penalties - this also includes reselling originals unless you are licensed to.

 

A similar situation generally applies to artwork - it is copyright to the artist - you do not have the right to make reproductions or prints - you may usually resell the individual original work - the artist still has a right to control how they themselves are represented by you. I have myself been in a situation where, as an artist, I have found it necessary to intervene on legal grounds (with success).

 

I am not a lawyer, just trying to use common sense :P

 

Matti

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I think he meant to just purchase one piece of art or video then sell it, not make copies of anything. In the case of buying individual items you can buy all you want and sell all you want if you paid sales tax. In this case you would be selling off your own items. If you happen to turn a profit, so be it. You just can't buy one piece of art and have it reproduced, or buy a DVD and burn copies.

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Thanks for all your replies.

 

I am totally new to business lawso I wanted to understand the legal issues of buying then reselling legal nonpirated products. I have since learned that to buy wholesale I will need a resellers permit. I am planning to sell my own videos on an oscommerce website and decided to fill it out with others people's videos to give buyers a greater choice.

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  • 1 year later...

First post; hope to get some good input, thanks ahead of time. Canon recently (10/15) announced their Fall Rebate Offer and I decided to take advantage of it and purchased about 30 products from their list of eligible items (cameras, lenses). I have been purchasing these Canon products from authorized Canon dealers. Most are in NY, but all of them out of my state (California), so I have not paid any sales tax as they don't charge any to me. Anyway, I've been re-selling them on eBay and just trying to make a little profit from it all. I have not been charging any tax to anyone (I think I sold 1 or 2 items in my state so far). I have no reseller's license (don't even really know what it is) and only doing this "on the side." Can anyone give me some input or advice on laws or anything I should be more aware of? Is all this "okay"? Thanks again to anyone and everyone who responds. Jo

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As far as "I" was told by the IRS -- "IF" you purchase items for the intent of resale you are then in business and your intent is to make a profit and therefore need a business license / collect sales tax / file tax collection forms / file schedule C etc

 

If you are just selling things around your home (as a garage sale ) that are no longer used or needed you are not really in "business"

 

IRS in my undestanding looks at "intent" - It sounds to me that you indeed are operating a business and plan to continue.

 

Of course the flip side to all of this is claiming vehicle expense, possably home office, all shipping expenses, computer (percent used for business) , ink, paper, etc etc

 

of course I do NOT claim to be a tax advisor and seems to me many people read and understand this differently.

 

I started out on eBay selling unwanted items untill one day, I "discovered" buying to resale was no longer a "hobby" or "amusement" anymore -- so went "legal"

 

hope this helps a little

 

John

 

 

 

 

 

First post; hope to get some good input, thanks ahead of time. Canon recently (10/15) announced their Fall Rebate Offer and I decided to take advantage of it and purchased about 30 products from their list of eligible items (cameras, lenses). I have been purchasing these Canon products from authorized Canon dealers. Most are in NY, but all of them out of my state (California), so I have not paid any sales tax as they don't charge any to me. Anyway, I've been re-selling them on eBay and just trying to make a little profit from it all. I have not been charging any tax to anyone (I think I sold 1 or 2 items in my state so far). I have no reseller's license (don't even really know what it is) and only doing this "on the side." Can anyone give me some input or advice on laws or anything I should be more aware of? Is all this "okay"? Thanks again to anyone and everyone who responds. Jo
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....IRS in my undestanding looks at "intent" - It sounds to me that you indeed are operating a business and plan to continue...

 

... of course I do NOT claim to be a tax advisor and seems to me many people read and understand this differently.

 

I concur with these observations. In my opinion, the best thing for you to do at this point is make an appointment with a local accountant. They can rapidly educate you on all of the tax related issues for your location. It might cost you some money now to do that, but it could potentially save you thousands later, not to mention the time and stress if you get into a tangle later with any tax jurisdiction.

Rule #1: Without exception, backup your database and files before making any changes to your files or database.

Rule #2: Make sure there are no exceptions to Rule #1.

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I concur with these observations. In my opinion, the best thing for you to do at this point is make an appointment with a local accountant. They can rapidly educate you on all of the tax related issues for your location. It might cost you some money now to do that, but it could potentially save you thousands later, not to mention the time and stress if you get into a tangle later with any tax jurisdiction.

 

 

As an accountant, I know a bit about this stuff and am glad I can help out on this site, finally LOL

 

Each states' laws are different. But, if you are going to sell anything to anyone within your own state you need to collect and remit sales tax. It does not cost anything to register for sales tax in your state. If you are selling out of state, you do not need to collect or remit sales tax. It is up to the buyer to remit use tax. With the exception of a few states such as Nevada and South Carolina. You are essentially drop shipping product to your customers and since you do not have Nexus (a presence in their state) you are not obligated to register for a sales tax license in that state.

 

Make sense?

 

As for it being legal to resell, I agree that as long as you are not pirating and reselling then you are free to resell. However, if you do let them know that you are planning to resell and distribute, you may be able to get a better price as a distributor and buy from them wholsale...

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