Informal Entry and license on copy right

Re: [spiers] Informal Entry and license on copy right


In a message dated 5/22/03 1:52:57 AM, fhgu@netzero.net writes:

Hi John, a few months ago there had been some discussion on informal entry.
My understanding is that if the shipment is under $2000 and shipped directly
to my home then I would not have to use a custom broker. Does it have to be
via air freight? Or it could be via surface as long as the shipment is coming to
my home.

***$2K per conveyance, so it can be trucked or boat or plane, what ever you
like...***

I am dealing with candy here, one of the product lines this SE Asia
manufacture has is candy wrapped or shaped in a well-done Japanese cartoon
character.
The sales director told me that they are authorized and licensee by the
Japanese media production company. And that every candy I buy from them, royalty
is
calculated into the total price. The Japanese media production company has also
trade marked the character here in the US. Now, will I have trouble importing
and selling these candy in the US? If I apply the idea of "importer as
manufacture" then I think I will need to obtain license from the Japanese
company,
but I don't really make them and I am paying royalty already when buying from
the manufacture. Any idea?


***Aha, this is where the customsbroker you seek t avoid comes in... they can
tell you what documentation you need, and as for all that, better safe than
sorry. What is your goal? To import these... then get all your info from the
customs broker, but for initial samples just have them sent to your house, why
waste the brokers talent on an informal entry?

There is another problem that concerns me though... you describe a classic
"off-the-shelf" item. Say it is popular, and you do well with it, it is only a
matter of time that somebody prefers what appears to be your profits rather
than what they know to be their own.

Say someone is struggling in the biz eeking out $25,000 per year, and
believes you are making $50,000 per year. He will come after you, and you will
have
to cut your prices to survive. This is just one scenario when dealing in
off-the-shelf items.

Now here is the problem: to get where people notice you, you have to
reinvest your profits, meaning WHEN they steal your idea, you no longer have a
means
to recoup your investment, and don't. I suspect this is a source for many
peoples idea that importing is a matter of finding something cool overseas and
making a killing. Outsiders assume that since someone has an office and space
at a trade show, and travels, they must be doing very well indeed. Perhaps,
but whatever they are making is going into the company the first few years... it
is the longevity where these biz pay off.

With 30 years experience, I've seen countless examples of this... people who
were on the cover of Inc. magazine for the wonderful biz they had, only to be
gone within a year or so.

Competing with existiing products is like having a restaurant where your most
used tool is the can opener... people will catch on and lose interest. But
you still have the expense of the restaurant itself.

If you are into candy action figures, shouldn't develop your own?

John

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