Putting known parts together as a single product legal?

Thread Starter

boonxiong

Joined Oct 17, 2011
52
Say a company ABC wants to build a custom off-road vehicle. Can they get into legal trouble if they buy a motor from a known company, say Honda, and sell their vehicle on the market? Company ABC does not claim the motor is theirs', but just rather part of their vehicle.
 

wayneh

Joined Sep 9, 2010
18,096
Do you think there is a difference between paying ABC as a service to build it and buying a ready to go product?
The only issue is intellectual property. You're free (and maybe even encouraged) to buy off-the-shelf components to incorporate into larger assemblies. That's how much of the auto industry works.

But if you bought Honda engines and scraped off their logo, and then claimed you had all sorts of innovations in "your" engine, there would be problems.

If you have ABC build something exclusively for you, that is different than buying off-the-shelf.
 

Thread Starter

boonxiong

Joined Oct 17, 2011
52
I'm aware of the effects of claiming something that doesn't belong to you, but I'm curious about creating a product with company ABC on the outside, but the heart of the product has another's engine on the inside.
 

MaxHeadRoom

Joined Jul 18, 2013
30,605
We have a company here in Canada that build a small 3 wheeled motorized vehicles such as used by city employees and police, in some cities.
They use a 3rd party motor, not sure if it is Honda but a similar automobile manufacturer.
They just call it by their name, there is no reference to the auto manuf of the motor.
Licensing such a product has to be passed by the local Province or state it is used in.
Max.
 

GopherT

Joined Nov 23, 2012
8,009
I'm aware of the effects of claiming something that doesn't belong to you, but I'm curious about creating a product with company ABC on the outside, but the heart of the product has another's engine on the inside.
Go to the hardware store and look at John Deere tractors. What brand is that motor - Briggs and Stratton, Kohler, Kawasaki HI. What brand is the transmission.

Look at the power washers - Honda motors all over the place.

MTD Yardmachine tractors - I think every piece is from another manufacturer.
 

Thread Starter

boonxiong

Joined Oct 17, 2011
52
I'm just thinking in the case in which say you took the motor from one of their car. Can you use this motor in your own product since the intention of this motor was to be used in their vehicles.
Or is everything fair games as long as you don't promote their property as your's?

I'm looking at the Ariel Atom as an example. They are company "ABC", but they use Honda's engine. In this case, i'm not sure whether or not they were required to talk with Honda first. If they were indeed required to talk with Honda, then I think it would be extremely difficult for any small company to get off the ground.
 

GopherT

Joined Nov 23, 2012
8,009
I'm just thinking in the case in which say you took the motor from one of their car. Can you use this motor in your own product since the intention of this motor was to be used in their vehicles.
Or is everything fair games as long as you don't promote their property as your's?

I'm looking at the Ariel Atom as an example. They are company "ABC", but they use Honda's engine. In this case, i'm not sure whether or not they were required to talk with Honda first. If they were indeed required to talk with Honda, then I think it would be extremely difficult for any small company to get off the ground.
Honestly, Honda would love to sell you a truckload of motors. Call your dealer, tell him what you want and they will give you a quote. If you want to travel, contact Honda HQ in your country and you will soon discover that everything has a price. Just ask. I'm sure Honda will offer you a better price than buying a whole car and the work to remove the engine and then dispose of the rest.
 
Say a company ABC wants to build a custom off-road vehicle. Can they get into legal trouble if they buy a motor from a known company, say Honda, and sell their vehicle on the market? Company ABC does not claim the motor is theirs', but just rather part of their vehicle.
IMO, based upon other industries, they (CIP Honda) might even grant ABC preference via promotional/TM licensure (à la 'Intel inside') -- Of course such 'consideration' would come at the cost of oversight/interference such that they maintained a 'string' upon the 'direction'/reputation or their product...

--- Merely a thought - this falls wayyyy outside my purview:oops::eek:---

Best regards
HP:)
 
Last edited:

MaxHeadRoom

Joined Jul 18, 2013
30,605
It has been a while since I visited the factory I mentioned earlier but I seem to recall now they Were using Honda engines, they buy them in bulk direct from Honda.
Max.
 

DickCappels

Joined Aug 21, 2008
10,661
The engine is just another component. Think about electronic products -all those components not listed on the product or product literature.
 

shortbus

Joined Sep 30, 2009
10,050
One thing that is missing in this, a vehicle sold as new(in the US, but imagine it's the same everywhere) will still need to be certified to meet all existing standards. One company I know of , Factory Five, found this to be too much. So they found away to get around it. They sell all of the unassembled parts, bumper to bumper, as a kit. The home builder can choose how little or how much of it they want. And since there cars are modeled after vehicles that were made before such things as emission controls, the home builder doesn't even need to worry about that. www.factoryfive.com/
 

joeyd999

Joined Jun 6, 2011
6,252
There is always an issue of liability.

ABC company will likely require you -- as part of a purchase agreement -- to indemnify them (via your own liability insurance policy) and to hold them harmless against any damages that occur from the sale/use of your machine that incorporates their engine.
 

#12

Joined Nov 30, 2010
18,224
This reminds of a time when The Paradyne Corporation got sued for something like using Cisco System routers in one of their products. So I opened up my Texas Instruments calculator and saw all the parts labeled, "Singapore" or, "Heche in Mexico".

I guess it depends on who wants to get out of their contract to buy from you.:rolleyes:
The cure is to take the advice you already got: Be honest from the start. Conceal nothing. Don't even try, "sneaky".
There is no law against proper disclosure of the relevant facts.
 
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