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ARTICLE · 06 NOVEMBER 2020

The Intersection Between Drop-Shipping And Patent Infringement

McMillan LLP
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McMillan LLP

McMillan LLP

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"Drop-shipping" is a popular online retail business model where a business does not maintain its own inventory, but instead relies on a third-party supplier to directly ship goods...

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"Drop-shipping" is a popular online retail business model where a business does not maintain its own inventory, but instead relies on a third-party supplier to directly ship goods to the business's customer after the business's customer places an order for said goods with the business. In essence, once the customer places an order with the business and pays the business the retail price for the goods, the business forwards the order onto a third-party supplier and pays the third-party supplier the supplier's price for the goods. The supplier then directly ships the goods to the customer, and the business keeps the profit difference between its retail price and the supplier's price.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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