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  1. #1
    Join Date
    Dec 2009
    Posts
    12

    Default Am I Infringing Patents

    Hello,

    I am only asking this question because I am thinking of adding a product to my website and I want to get out in front of a potential problem before it has the chance to happen. I own a computer repair company and I have been repairing a very popular game console that has a tendency to suffer from what some call a design flaw rendering them useless. I can easily repair the consoles and put them back into production, I have been doing this for quite some time with no (real) issues. I had lent one of my home made visually modified consoles (with a clear case and LED lights) to a kid while I fixed his console. I did this because it was Christmas and he had received several gifts related to the console. Now he wants to buy the "wicked cool' console that I lent him. To make it worth my while I would need 200.00 for the console, but if he is willing to trade his broken consoles (now fixed) I will give him a 50.00 credit. I warranty my work on the consoles when I repair them anyway so I am not taking a risk by selling him one that I intended to keep for myself, instead of giving him his which I refurbished. I never realized it before but my hobby could be a lucrative product for my business which is 100% above the table.

    To repair and/or modify the consoles I must cut a warranty seal voiding the manufacturer's warranty, I make all of my customers who hire me to repair their console (which is almost always out of warranty or the customer is in too much of a hurry to wait for the manufacturer to repair it) sign a statement stating that they understand this and they have no recourse if the manufacturer extends the warranty in the future of changes the terms of the warranty in the future.

    The problem is I am wondering if I am infringing on the manufacturer by modifying the consoles (visually only i.e. cases, lights, artwork etc. I do not modify them so they can play illegal copies of games or cheat or anything like that) and reselling them. The only reason that i worry is because they are serial numbered and they are registered with the manufacturer by the people who bought them originally. I can prove that i paid for every console that I have purchased in non working condition (and subsequently fixed), so I doubt that the original owners can make a claim on them, but the manufacturer does not allow their system to be updated with a new owner, they do not take calls on the matter, and the only thing that I can find from the manufacturer on the matter of reselling consoles is that the terms of the warranty specifically state that their warranty does not follow the sale to a second owner.

    I have 2 questions here:
    AM I INFRINGING ON THE MANUFACTURER BY MODIFYING AND RESELLING THEIR CONSOLES?

    DOES THE PERSON WHO SOLD ME THE CONSOLE HAVE ANY LEGAL CLAIM TO OWNERSHIP?

    I also want to add that if the masses approve of this I will find an attorney to formalize it before actually going forward, I am posting here to make sure I am not wasting my time.

    Thanks for your help.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Am I Infringing Patents

    AM I INFRINGING ON THE MANUFACTURER BY MODIFYING AND RESELLING THEIR CONSOLES?
    in the manner you have stated; no. You must not ever claim the modification is a product of the OEM. You also need to be concerned about altering any programming but you have said this is not the case here.

    DOES THE PERSON WHO SOLD ME THE CONSOLE HAVE ANY LEGAL CLAIM TO OWNERSHIP?
    Huh? If they sold the console to you, it is yours. End of story. Maybe I am missing the intent of your question but as I read your question, no claim.

    I also want to add that if the masses approve of this I will find an attorney to formalize it before actually going forward, I am posting here to make sure I am not wasting my time.
    great idea
    One thing you have not said anything about. If you are a retailer for the OEM sale, what you are doing could be illegal. From what you have written, you are doing this with units that have already been purchased elsewhere. Is this correct?

  3. #3
    Join Date
    Dec 2009
    Posts
    12

    Default Re: Am I Infringing Patents

    Yes, I only buy broken consoles that people sell on ebay and craigs list for 40 - 60 dollars, and fix them it is very rare that I buy a working one because it is not worth it. The reason why I wonder about the claim to ownership would hypothetically play out something like this: someone buys a visually modified console from me and something crazy like the dvd drive stops working, but it happened only a few days after the sale, I tell them "I can fix it under your warranty no problem" and they say "no i want mine back", I say "well you can't because I used it for parts or sold it to someone else". Do they have any legal recourse?

    (you know about my other situtation so i am being cautious)

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Am I Infringing Patents

    You should have written terms to help avoid such a situation.

    Something to the effect that there are no returns allowed or systems purchased by you, whether they be an outright purchase or as an exchange become your property and are not subject to return to the original owner.

    the purchasers only claim under warranty is to have the defective unit repaired by you.

    You might also consider not cannibalizing or repairing an exchange unit for some period of time so as to be able to deal with this in a different method as well where you could return the unit, if that is possible.

    None of that would protect you 100% due to the fact you can never control what a court might do but it would help reduce the occurrences to a minimal situation.

    You need to have your return policy (no returns, ever) in writing. You need to have your purchase agreement clearly state the same thing. It might help you to separate the purchase of the old unit from the sale of the new modified unit as well. That helps clear up what happens if you might on occasion refund them the purchase of the new unit.

    as always; a face to face conversation with an attorney that deals with your type of situation specifically would be a good idea.

  5. #5
    Join Date
    Dec 2009
    Posts
    12

    Default Re: Am I Infringing Patents

    Thank You,

    I am going to talk to a business lawyer, I am enjoying this website and exposure to people who know what they are doing, but I understand it is no substitute. I am great at fixing computers and not so great at contracts and purchase agreements..

    Your help is appreciated!

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