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I’m wondering whether or not the enterprise is sustainable.
From a slightly different perspective (irrespective of karma, ethics, legalities etc.) licensing can usually be a rather large component to company revenue and by undermining this revenue stream, I dare say it would only be a matter of time before the ‘mother’ company (and or licensing agents) took measures to ensure this income continues. If all of a sudden distributors throughtout the world ceased to pay for licensing because they and their retailers could not compete (with Snow and co.) at retail level, I’m tipping the mother company wouldn’t be too impressed and would cut sources outside licensed agents.
In the meantime, you’ve put money into a business, built a solid clientele and for what if your source was to be stopped?

I can’t help but think distributors pay licensing fees for a reason. Exclusivity?

If it were my product, to ensure these fees rolled in each year I would fight tooth and nail my fee paying distributors had exclusivity in the region they are licensed.

I guess at the end of the day it’s a bit of punt and if you can make some quick cash whilst it lasts go for it.