A trademark gives the holder rights to the word, phrase, shape or colour of the trademarked product for commercial prospects. Granted on the basis of registration, trademarks are meant to prevent unfair competition especially with regard to brand names. For instance, one example of trademark infringement is a watch that is not made by Rolex, but has the Rolex trademark insignia on it. The person selling this watch can be accused of an illegal act. The best way to avoid trademark infringement is to trust your supplier source and never try to mislead your customer regarding a brand's authenticity.
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Perform due diligence on your suppliers. If your suppliers sell you products that have an illegal trademark and you sell these goods to your client, you are also responsible for the sale. Ask your suppliers where they get their products from and always ask for references before starting a business relationship with a new vendor.
Buy directly from the owner of the trademark. This usually involves registering with the owner and paying a fee to become a dealer, especially with high-priced merchandise. The fee and registration entitle you to sell the trademarked items legally.
Create a store name that is not similar to the name of the trademark owner. That is, if you are selling Rolex watches, and you do not have a license to sell Rolex watches it is illegal to open a store which is named Rolex or even Rolax that sells watches. The name cannot be confusing to the buyer. However, if you open a store that sells potatoes called Rolex, it is not considered trademark infringement.
Verify the label on the product you are selling is legitimate by comparing it to the trademarked label. If it is not the same in any way you may be selling counterfeit goods.
Only sell items that do not mislead the buyer. If you sell one trademarked item, and then sell another item that looks like the trademarked item but is not in fact a legitimately trademarked item, you may be misleading the customer, especially if the price is the same. To prevent this, make a clear distinction between the trademarked item and the similarly marked item.
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