Using Logos on Merchandise

[Airway]

I frequently see clothing and other items for sale in world and on marketplace that have a sports team or company logo of some sort.  I'm curious about the legality of selling these items to make a profit.  If I come across these items, should I report them?

Also, if I make an item with a logo for my own personal use and don't put for sale is thie acceptable?  

[Amethyst Jetaime]

It is only legal if the company that owns the logo gave the creator permission to do that.  There is no way of knowing if they have or not.  Coca Cola gave such permission early on in SL and that is OK to use apparently.  Other companies, probably not, but again no way of telling.

If you see something that you thinks violates someone's IP rights, copyright or trademark the only thing you can do is report it to the owner.  LL will do nothing unless and until the owner files an official notice with LL.  Once you report it, it will be up to the owner what to do.  Some companies may  look on it as free promotion, while others will go after the creator both in SL and RL.

As for yourself, no you can't make anything with a RL logo on it even for personal use.  It is against the TOS as well as RL law, unless you obtain written permission to use it.  Its just not worth risking your SL account over or the hundreds or thousands of dollars you may end up having to pay the owner for infringement of their trademark if they elect to pursue the matter in RL.  You may get away with it, but then again someone may report you and you would then be in a boatload of legal trouble.

If you want logo merchandise, make your own logo or have someone make you one and use that.  In the long run it will do more to promote your brand than ripping someone else's off. 

Here is the official policy covering this topic.  You should read it.  It is incorporated into the TOS by reference in section 12.  Related documents:

secondlife.com/wiki/Linden_Lab_Official:Frequently_Asked_Questions_on_the_IP_Complaint_Process

http://wiki.secondlife.com/wiki/Linden_Lab_Official:Using_Linden_Lab%27s_trademarks_and_logos