Tobes1308

Getting Sued for trademark infringement with LLC

4 posts in this topic

I made a NFL sports sign for a friend of mine and now I'm interested in selling them on etsy ( where it seems like a lot of people rip of sports logos on their homemade goods and have been getting away with it for years)

 

I understand there is copyright laws/ trademark laws on these logos but my question is if i sold them under a LLC am i protected personally? Could they only sue the LLC for what its worth? 

 

Im confused because when I googled it this came up:

 

Generally a limited liability company (LLC) is different; the owner is not personally liable for the business' obligations and therefore cannot be sued for the business' actions. However, there are some situations where the owner of an LLC can be sued personally for the LLC's actions.

 

I cant seem to find out if this is one of those situations where I could be sued personally...

 

 

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You can be sued both personally and as a member of the LLC.  The LLC protects the members from suit brought by folks "dealing" or transacting business with the LLC provided the folks on the other side are aware they are dealing with a limited liability company.

 

You are not "dealing" or transacting business with the NFL if you violate their copyright and/or trademark.  In a sense you are stealing from the NFL and being a member of an LLC is not going to protect you.

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On 4/20/2017 at 9:01 AM, Tobes1308 said:

I understand there is copyright laws/ trademark laws on these logos but my question is if i sold them under a LLC am i protected personally? Could they only sue the LLC for what its worth?

 

Well...that depends.  In order to take advantage of the protection provided by the LLC business form, one of the things you need to do is capitalize the business to cover reasonably foreseeable risks.  Since you'd be knowingly engaging in illegal conduct that would mean you'd need to capitalize the LLC to account for all potential damages under the federal Lanham Act.  Do you intend to do that?

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