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Thread: Selling baits?

  1. #1
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    Default Selling baits?


    Just wondering here, teacher retirement is still a long way off but.....Do you have to have a special permit or license to produce and sell artificial lures? I have been dabbling in jig and fly tying and now I'm starting to fool around with plastics and was wondering if I wanted to start selling them when I retire if I needed something like that. I don't really want to go big cause it would cut into my fishing time, but maybe make a little for boat gas and such. Any info would be appreciated.

    I was also wondering about bait names? Can they be copyrighted or are designs copyrighted or trademarked? I'd hate to step on anyones toes.
    "Insanity is inherited, you get it from your kids."

    Mike Epperson

  2. #2
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    best thing to do is contact your state tax dept. i just went an got my wv lic. It was free for the 1st 2 yrs. And as long as you keep your sales below 4000 there free. Sole proprieter is what you want.

  3. #3
    skeetbum's Avatar
    skeetbum is offline Crappie.com Legend - Moderator Jig Tying Forum * Crappie.com Supporter
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    My understanding is that you will just offset your costs if you don't go large. I've sold a few and can see this is about where I'll fit in. It's something that occupies my busy mind and keeps my hands busy. Good luck with it all.
    Creativity is just intelligence fooling around

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    Trademarks can be done on the design like Blakemore has on the Roadrunners, but enforcing that is a big pain and costly. I spoke with a guy that they got after though and he use to make the old Stump Jumpers for Bass Pro and he lost everything over that. So enforcing it can be done and very effectively if they want to pursue it as he would tell you since he lost his company over that.

    I do know that if or when Blakemore decides to jump on people there is a lot of them right now that are in harms way and could loose everything for selling Pony heads as they are the only one that has the right to sell them. You can buy a mold for who ever and make them for your self, but selling them is when you could have a big problem. Blakemore's Trademark spells out the design and that it is a 90 degree hook and where the eyes are placed, but I don't remember all of it. I change blades sometimes when people want a willow leaf blade, but if I use blades other than Blakemore's imprinted Roadrunner blades and I ho put a stick on the package that states their Trademark number and that this falls under that trademark.

    I have some pony heads I bought before I know the deal on them and they became for my use only and I finally got the real Roadrunners to tie and sell with Blakemore's blessing, but that took about 2 years, LOL!

    However if you are not going big then I would suspect it wouldn't be worth it to you, but that would be something you would have to check and decide on. I can't see how anyone going small could afford to not just get the trademark or patent, but to enforce it is a lot so selling small amounts couldn't pay for that and still put gas in your boat.

    Now as far as just the name, maybe so on a copyright, but I don't really know what kind of cost are involved, but it would be something to check with an attorney about and also ask them how much it would cost to enforce it because that is where the tires hit the road so to speak.

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    Let Me give You the straight the Gov. draws a thin line between hobbie and Business ? who know's where it is as a Manufacture and retailer I know if You sell a Fair amount? a 10% excise tax has to be collected and paid on a form 720 quaterly no if or ans here Any and All types of artifical baits from fly's to plastic's I keep a list on My desk when searching new or designing new products this even includes plastic skirts AKA sili legs they can by them selves attract fish? don't end up like many and not do this pay up front it's alot cheaper.
    STICK-A-FORK-IN-ME-IM-DUMBER !
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  6. #6
    Jiggin_Joe's Avatar
    Jiggin_Joe is offline Crappie Wall Hanger II * Crappie.com Supporter * Member Sponsor
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    Thanks to Flat Im legal I would of never known about the excise tax tell he told me about it awhile back and also you will need a state Id # for sales tax (if your state has one) And just make sure to keep very accurate records it will help your tax guy out.

    JJ
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    Thanks guys, it sounds like it could be a big headache. Thanks for all of the info.
    "Insanity is inherited, you get it from your kids."

    Mike Epperson

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    Default legals

    Well. Get a Million dollar insurance policy about $500 a year. Covers products and workplace. Then Incorporate so the person or company can only sue your company and not you. 720 form from the IRS. Free. 10% tax at the price you sell. On the 720 form if you make one fishing lure or anything along that line no matter what your sales are you have to pay 10%. State tax no. and tax info for you state. Should be free. Go to U.S. trademark and patent and do a search for names for products you wish to name. You can learn alot from reading their info. Lots of learning to do. Ha.

    P.S. Forgot if you sell in Ca. must be labeled with the lead warning unless 100% leadfree.

    TT
    Last edited by Timmy Tom; 02-14-2010 at 10:41 PM.

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    mepperson,
    Be very careful as to what designs you sell. Patent infringement can be quite costly. They can sue you for 3 times the amount they have made off of them from the time they started making the products. Plus attorney fees, and fees can go into the millions. The company really might not want to mess with you but the law says they have to enforce the patent or it could nullified. These guys are telling you straight, listen to them.
    To get any price breaks on hooks, 50,000 will start to get a very small break, but you really need to start at 100k for them to really work with you.
    Plastics: you can do it by the 5 gallon amount but your not going to make that much off of them by the time you add all your overhead into it. So now you are talking by the drum and the pvc companies want you buying 3 drums at a time.

  10. #10
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    Okay, you guys have just about scared me to death on trying to sell baits, but just in case I wanted to search patents to see if there is one what do I do? Do bait makers have to identify a patent if they have one on a bait?
    "Insanity is inherited, you get it from your kids."

    Mike Epperson

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