Chinese version iPhone... Illegal?

Here is a link I found check it out apples copyrights: http://www.apple.com/legal/trademark/guidelinesfor3rdparties.html I think you can sell the item just state not apple brand. I am not a lawyer...

How do I get a reseller's license

if you live in the united states your can get more information from your local city every state is different some cost money and some don't

Chinese version iPhone... Illegal?

I Don't think its illegal in the U.S. But if you are going to sell them make sure you state they are not Iphones and are not a apple brand if you don't this can get you in to some mess I would suggest...