Which part was illegal? Selling beer online? Or the trademark issue?
If its just the trademark issue, then just change the name and carry on.
If its just the trademark issue, then just change the name and carry on.
However, selling beer online in Vermont is never legal.
Interestingly, it is possible to sell a certain amount wine online in Vermont. Just not beer. Now I know.
It is always illegal to ship beer beer via USPS. It is not against policy to ship beer via Fedex of UPS if you take the necessary steps. I believe you have to show them proof of proper license and pay a fee. Of course, if you do not take these extra steps... I don't think there's a problem. Fedex has destroyed plenty of my orders, but always let me ship more. No refund to speak of though.
That being said, there is a major online beer seller:http://www.halftimebeverage.com/browse.cfm/long-trail-ale-12...
That does sell a Vermon-based beer online...
To be honest I'm pretty scared now of trying to sell any kind of beer online. It just seems so risky after having been threatened with legal action.
On the other hand, I do have Jen's direct email address and could easily inquire to her about selling Heady Topper in New York...
The 21st amendment lets each state set the rules for the transportation of and importation of intoxicating liquors into that state. So the problem is not so much that it's prima facie illegal, as that each state has its own set of rules/taxes/requirements that you must comply with. I suppose a state could make it illegal to sell alcohol online.
* There are states such as Texas that forbid the unlicensed shipping of alcohol from outside the state to residents.
* There are states (I think IL is one of them) for which large classes of alcoholic beverages are controlled by distributorships, which are licensed monopolies for shipping.
* Both UPS and FedEx require a special license to ship alcohol through them.
* It's illegal to ship alcohol using the USPS.
A lot of these issues are in flux (and are tending to be resolved the "right" way), but there is still a lot of prohibition baggage in our liquor laws.
The problem with startup breweries/wineries is that they have to make thier sales exclusively to distributors, then market to retailers (get demand for the distros to carry). However, as a retailer, you're only allowed to purchase from the distributors. If the distro doesnt carry a product you want to sell, you legally cannot sell it.
It was an eye-opener. The code itself was a horrifying pile of special cases, largely because each state had its own form, which required its own set of information, and its own rules regarding shipments, and its own license fees ...
I wouldn't be surprised if 20% of the retail cost of alcoholic beverages is due to the headaches associated with moving them across state lines.
I helped build one of the first online wine sales sites and they imploded due to spending tons of money trying to establish a complicated system of warehouses in every state in order to comply with the regulations.