I looked into starting a bassinet rental business (in this case, it's a specialized bassinet approved by the FDA to prevent SIDS and to help babies sleep better and longer). It's called a "SNOO" and it's very expensive; a new one runs about $1800 and it's only recommended for use for the first 3 to 6 months of life.

However, in the Terms & Conditions of sale on their website, it clearly states that one may not purchase the item with the intent of profiting commercially by renting or leasing it so that ended my plan right there.

I have another idea for rentals but now I'm wondering if I can legally rent out any product for profit without getting permission from the creator or designer. I've seen companies that rent out Louis Vitton handbags, etc but some of them are collectives of people who own these items and post them as individual vendors that are members of the website, which leads me to believe that they are trying to blur the lines of legality in terms of being allowed to market under the LV name or profit directly from it. Then again, there's renttherunway.com which rents out all kinds of designer goods but perhaps they have agreements with these designers to be allowed to rent out their items.

So, are there some cut-and-dry rules on this that I should know about before investing in a website, inventory, etc? Or is it a case-by-case basis depending on trademarks, copyrights, etc?

Can anyone recommend a local attorney who could advise on this type of business law? TIA

My wife said one of her colleagues rented a SNOO. So looks like the idea exists.

Pretty interesting idea. We just had our second a few days ago so I am immersed in this stuff right now.

AnyOtherName said:

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My wife said one of her colleagues rented a SNOO. So looks like the idea exists.

Pretty interesting idea. We just had our second a few days ago so I am immersed in this stuff right now.

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Yes, I've seen a couple of rental companies exist but they may have agreements with the creator/manufacturer. I contacted the legal dept for Happiest Baby (SNOO) and they responded that they have agreements in place with some parties but you can also rent directly from Happiest Baby as well. However, they reinforced their condition that one may not just buy a SNOO and rent it out as a business venture without any agreement in place with them.

I did consider the liability side as well which is why I feel like I should pursue this new idea I have instead of SNOO. I just need to know how to present it.

Thank you all for your input so far! Again, if you have an attorney recommendation in this area, let me know.

Not sure about legality but liability could be an issue. Since you would be intentionally operating outside the manufacturer's guidelines, they would likely be absolved of any liability exposure as the manufacturer. This means you would take on that risk solely. Depending on any other agreements with a manufacturer for purchase, you may actually be required to indemnify them. Items involving use by infants (clothing/furniture...etc.) carry a huge liability risk because regardless if injury or death is caused by the item, the chance of lawsuit is pretty high when an incident occurs. Proper liability insurance will pay or more than just the indemnification but your defense costs as well.

Also, delivery, directions for use. waiver...etc., are all on you now, which could add a liability wrinkle if a manufacture will not stand behind the product for you.

I'm not trying to talk you out of it, but as stated by someone above, "don't skimp on the liability". It will not be cheap because there is a reasonable expectation of a lawsuit at some point. Also, it will be easy for a unqualified/new agent to get this policy wrong for you so chose your agent wisely.

I should clarify...I am *not* pursuing the SNOO idea. It just led me to wonder if the same idea of taking something someone else created and renting it to others for profit WITHOUT the permission of the creator/manufacturer was legal. For the example I cited, let's say I wanted to rent luxury handbags. Can I buy a Louis Vuitton and advertise on my website that I can rent you a LV for a fraction of the price of buying one? In other words, can I use their name (not their logo) on my website for the purposes of profiting on their creation? Is that infringing?

We have a SNOO and have lent it to 4 people now. It may be in place to specifically stop this, but one dumb thing about it that we've noticed is new users cannot reset or log in to the SNOO if it's registered to someone else. The existing account has to log in and remove the SNOO for the new user to add it and be able to control it. We've encountered this for all but one person we've lent it to even though we specifically told them/asked them if they removed it when we got it back....

Obviously not a deal breaker for what you're trying to do, but another wrinkle.

htxag09 said:

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We have a SNOO and have lent it to 4 people now. It may be in place to specifically stop this, but one dumb thing about it that we've noticed is new users cannot reset or log in to the SNOO if it's registered to someone else. The existing account has to log in and remove the SNOO for the new user to add it and be able to control it. We've encountered this for all but one person we've lent it to even though we specifically told them/asked them if they removed it when we got it back....

Obviously not a deal breaker for what you're trying to do, but another wrinkle.

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Yeah. I feel like I dodged a bullet because there are a lot of ancillary issues to worry about with it.

But it sure made me more careful about starting another rental concept and how I can present it without infringing on a designer's property...

We've rented out Snoos for years. No issues.

Fwiw it's not just about sids. Everyone who's borrowed it has their kids sleep through the night within 2 months. This is the main reason we got it, not sids

Could be they would have anyway. But worth every penny for not having to wake in the middle of the night. Also, we bought it used.

If you are serious about doing this, I would engage a lawyer to make sure you answer all your questions. Just a few quick observations:

1. Set up an LLC to do this
2. Adequately insure your business
3. Probably not a restriction unless there is special IP or confidential information they are giving you
4. That language is probably more an effort to shield their liability than restricting you. They want reasons to argue they are not liable if your renter has a problem. Also likely voids your warranty, etc
5. If they find out, they could have a breach of contract claim. Not sure it holds up and they likely don't come after you unless it's materially affecting their bottom line
6. Don't hold yourself out as a distributor or partner of theirs.
7. Make sure you have good renter agreements in place with your customers.

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From exhausted and desperate parents. So do I believe SNOO has helped parents avoid unsafe sleep environments and therefore prevented at least one death? Abso-freaking-lutely

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There's no doubt about that. It drives me crazy when people co-sleep with little babies. It's such an unnecessary risk. They can always start co-sleeping when they're a little older.

rent them a webcam and with that rental they get free use of a SNOO