NSW Can I be sued for commercialising a product that utilises another company’s product in it

[striker1700]

I am developing an online brand that sells computer monitors with a customised frame/glass screen with the intention of setting it up as a crowdfunding project and commercializing it once funded. However, my product utilises the monitor LCD/drivers of a named brand's (AOC, LG etc) monitor product. Would I be sued for my product utilising another named product parts in it? Thanks

*note: the monitor drivers state the manufacturer as the original company*

 

[Tim W]

Unless you are thinking to sell this product as an aftermarket accessory?
Are you an existing dealer/ distributor of these screens?

 

[striker1700]

Unless you are thinking to sell this product as an aftermarket accessory?
Are you an existing dealer/ distributor of these screens?

I’m not a existing dealer/distributor. Do I need to state the drivers/screen is made by the original company in my products advertisement etc?

 

[Tim W]

1. If you modify their product, without their agreement,
and then sell it on, as though it is theirs not yours,
then they will crush you with a passing-off action.

2. Are you prepared to take on all the ACL responsibilities and liabilities relating to the product
(as distinct from your add-on)?

3. To what extent is your product not simply an accessory,
better sold on that basis?

 

[striker1700]

I am prepared to take acl responsibilities and liabilities in relation to my product and my product isn’t not an accessory however entirely new reskinned product with some pre-existing manufactured internals. In relation to your first point, “then sell it on, as though it is theirs not yours,” i am aware that un-consentually selling a product on the behalf of another company is illegal however what are the legal implications of selling the product I have described under my name?
Thanks for your time

 

[Tim W]

I am prepared to take acl responsibilities and liabilities in relation to my product....

No, you don't get to do that.
As a retail seller, you'll be taking on compete liability for the whole of the product.
That's why all those car makers had to replace all those faulty Takata brand airbags, at their expense,
and didn't get to leave their customers to chase Takata.

The way you currently propose it, if you sell this product, and, say, the screen doesn't work, then that will be on you too.
You don't get fob off a faulty, say, screen on the maker. Especially not after you have modified the product yourself.

...and my product isn’t not an accessory however entirely new reskinned product with some pre-existing manufactured internals.

Unless you're buying the screens wholesale, and you have a licence from the manufacturers,
your product not new in the hands of your customer.
You're selling used products, with unauthorised aftermarket mods.

In relation to your first point, “then sell it on, as though it is theirs not yours,” i am aware that un-consentually selling a product on the behalf of another company is illegal however what are the legal implications of selling the product I have described under my name?

Well for one thing, it isn't substantially your product.
So, as I said above, you're at risk of a merciless passing off action.

Some further legal implications are that you will be misleading your customer about the item being new, and
misleading them about about their ACL entitlements.

 

[Docupedia]

To add to what Tim has said, there’s a good chance you won’t be able to rely on the other product‘s consumer guarantees yourself (such as where a claim is made against you, and you try to get the manufacturer to cover their component product). All consumer guarantees I’ve seen specifically exclude coverage for products bought for commercial use - which is what you are doing, and exclusion on that basis I is allowed. So, unless you’re (a) capable of fixing yourself, or (b) willing to wear the cost of repair, you could find the exercise very expensive purely from a product failure point of view.

 

[Tim W]

By way of a real life example...
The Holden VL Commodore had an engine that was designed, built, and supplied to Holden by Nissan.
There was an extensive commercial agreement between Holden and Nissan to make this happen.
Among other things, it covered IP, all aspects of product liability,
and of course, how the revenue stream would work.

What you propose is the opposite.
What you propose is to buy Skylines, rip out the parts,
and put them in cars of your own making.
Nah.

 

[Rod]

Go to Alibaba and source your own parts.

 

[metholdakaarison]

By way of a real life example...
The Holden VL Commodore had an engine that was designed, built, and supplied to Holden by Nissan.
There was an extensive commercial agreement between Holden and Nissan to make this happen.
Among other things, it covered IP, all aspects of product liability,
and of course, how the revenue stream would work.

What you propose is the opposite.
What you propose is to buy Skylines, rip out the parts,
and put them in cars of your own making clothing tags with string.
Nah.

So, as I mentioned earlier, you’re at risk of facing a serious passing-off action.