If I outsource logo design, am I liable if I unintentionally sell my client a plagiarized design?

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If I outsource logo design, am I liable if I unintentionally sell my client a plagiarized design?

I would like to establish a logo design business and plan on outsourcing the work
to offer competitive pricing. Assuming one of those foreign designers provides me
with a plagiarized design, which I unknowingly sell to a client, could that
client successfully sue me?

Asked on January 29, 2017 under Business Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, the client could potentially sue you on at least two different grounds:
1) breach of contract--not providing an original logo (or one they could legally use), and so not honoring your obligations; and/or 
2) to recover any losses they suffered due to your either negligent (i.e. careless) or deliberate passing off of a logo belonging to someone else to them, making them liable for trademark or copyright infringement.


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