There's nothing more exciting than to find the perfect artwork or finished design for a particular job or project and wow! It's even free! Or is it? Since embroidery has blossomed due to computerized technology and now that it's beginning to depend on the internet like most of today's industries, copyrights are becoming a very confusing subject with too many grey areas and unknown consequences. A newbie to computerized embroidery is having a hard enough time trying to figure out why the threads keep breaking and where to find supplies, so it's not surprising that when they first hear about this copyright stuff they seem honestly bewildered. The following information are basics to remember and not necessarily complete legalities. I am a digitizer, not a lawyer. This article is meant to help the new embroiderer, though the "old embroidery dogs" are certainly welcome to read on.

The possible problems that copyright infringement cause are not a pretty picture. Horror stories exist and they aren't fairy tales. In the January, 1992 issue of Stitches Magazine, an article entitled "Infringement By Accident?" reported that a midsized embroidery shop completed a fair sized order for a brewery distributor. The distributor took the beautifully done job to show the national headquarters, who in turn, "slapped a cease and desist order, with instructions to destroy all tapes and all merchandise with the logo thereon. Failure to do so would bring the full forces of this national corporation thundering down upon the little shop..."

The shop owner was quoted in the article, "We learned ... Not only can all the garments and the program used to sew them be confiscated, but you are also open to the confiscation of the equipment you used to create the program and to sew the garments."

In another occurance, a franchise owner of a well-known ice cream chain ordered a few shirts with the food chain's logo, paid for the digitizing, and had the shirts made for his employees. The national headquarters got wind of this and demanded all files be destroyed. Apparently, headquarters had their own licensed embroiderers and even if a person owns the franchise, it doesn't give them any right to use the franchise logo in any unauthorized way.

These are both situations that embroiderers are confronted with more often than they realize. It's often difficult to know when you're stepping on someones toes, so it pays to receive from your customer -- in writing -- authorized permission to use a logo. It's easy to get the written statement if you are dealing with a connection to the rightful owner. It's usually presented before asked for, along with camera ready art and their strict specifications. If your customer isn't sure, ask him to look into it before you start the job. He may bauk and whine that he doesn't have time, but you have too much to risk.

There are times when a copyrighted logo isn't so obvious. In this case, it's helpful to post a disclaimer in clear view to customers stating that if they know artwork is copyrighted or if they're not sure if it is, don't submit it. Also add that if later complications result from the work you've done, this responsibility lies on their shoulders.

The law allows the victim to sue for damages and for seizure of merchandise, along with machines, computer programs and whatever it takes to produce the merchandise. So don't be afraid you will lose a customer over insisting on receiving the proper permission. You might risk losing that particular job, but it's better than losing your entire business!

And then there's the "design sharing" situation that can lead to probably the most devastating predicament. The same Stitches article says, "Embroiderers should be cautious when purchasing and using pre-punched or stock designs. Here, the puncher's rights, in addition to the rights of the trademark or copyright holder are subject to violation.... Copyright usage rights extend only to the purchaser of the design and are not transferrable."

Unless a diskette is one the shop owner has made for their back-up alone, the diskette that the file is received on will reveal the copyright owner. If it does not, the diskette is not a legal copy. There have even been cases of conterfeit diskette labels, so it's always best to double check with the main company who supposedly created the design when buying used files.

When it comes to a legal copy of a design file, the only person who has the legal right to use this diskette is the one who paid the copyright holder for it. Only this particular diskette can be resold and any other back-ups must be destroyed or released with the original. Copies of the design file should never be given away unless the first owner relinquishes all sewing rights. It's quite similar to the use of any software and if you're reading this, you should already understand this policy. It's difficult sometimes to turn down friends, especially if it's a matter of needing the design immediately or "I'll lose my customer." But the consequences of a well-meant "loan" can be a nightmare.

One shop owner reported, "I owned a successful embroidery business...purchased an illegal copy of Dakota Collectibles designs...made copies for my friends...started charging for my expenses and shipping...one-half of the Dakota catalog price.... I did not believe that Dakota would ever find out."

It seems so easy and harmless sometimes, but beware! This particular infringer was discovered by Dakota Collectibles and brought suit against not only her, but others involved as well. The U.S. marshals raided her shop, served a summons, complaint and temporary restraining order on her and confiscated the copies of designs. She said she felt lucky because they didn't take her equipment and could have, but ultimately had to close up shop because of this situation.

Copyright infringement can result in criminal and civil penalties. The civil penalties refer to copyright owner's lost profits or up to $100,000 for each work infringed, plus the copyright owner's legal costs. The embroiderer is also subject to forfeiture to the U.S. government of all equipment used with the infringing software. It's just not worth it -- especially when a legal copy of the design can be easily purchased at a low price, in comparison to what can be lost.

Copyrights in the embroidery industry don't stop with the design stitch file. Just as in the case of the ice cream franchise situation, be very alert when accepting any job that involves artwork that is the slightest bit familiar. Many people are mistaken when they think that particular logos, and especially cartoon characters, belong in public domain. Not so! Just because it's something you grew up with, it does not mean that you have the legal right to reproduce it.

This is a common misconception by many of the small home hobby machine owners who have software that allows them to scan in a 'toon or two for their grandchildren's birthday gift. In most of these home hobby cases, permission is silently received from the copyright owner or basically forgiven. However, sometimes these hobby machine owners decide to sell a few of their sewn garments designed with copyrighted arwork to pay for their hobby and that's when the trouble can start. Just becuase you digitize it, does not give you the copyright to the art you have used. And copyrights don't exclude the smallest of businesses.

The internet has become an excellent source for free designs of all forms, but it's wise to read the disclaimers and copyright notices carefully. These notices are usually made obvious, but too many surf on by, download and even forget where they got it from. If the design is used in violation of the copyright it doesn't make any difference if you are Grandma Pfaffie or the King of the Multiheads. Both are putting their finances at risk if the rules are ignored.

The internet's free downloads have an intended purpose and this is usually made clear. The following is a notice from one graphic art web site:

"Note: None of these pages are in any way commercial in nature. The images have been placed here for the sole purpose of entertainment. To my knowledge, Disney neither acknowledges nor even has knowledge of these pages. All images contained are the property of Disney or their designer, and I have simply placed them here for entertainment value. "

This is telling you that if you download this art in any form other than for mere personal entertainment, you are at risk.

Embroidery designs are often offered by companies with the sole purpose of showing a possible customer the quality of their work and usually state clearly it's not for a profitable use by redistribution of the design. Starbird Inc., a professional digitizing company, has placed on their web site ( http://www.starbirdinc.com/ ) explicit explainations of the use of their free downloads:

"Disclaimer: Whereas these designs are free to the public, Starbird Inc. holds all copyrights to the designs presented here. Use of these designs is limited to the individual downloading the files, and are not to be used for resale, and are not to be transferred. Parties wishing to modify these designs must first receive explicit consent from Starbird Inc. before changes are made. Starbird Inc. warrants that all designs presented here are digitized wholly by Starbird, and are of the highest
quality possible. "

The company also offers more information on their excellent FAQ page that explains even further for those who don't quite get it:

"Basically, what the disclaimer says is whomever downloads the designs can do nearly whatever they want with the file.

What you can do:

Sew out samples of the designs to appraise the quality of our work.

Run production with the designs - run them on shirts, caps, or
whatever they were designed for.

Sell the finished goods and make a ton of money! Or, use the finished
goods as gifts which is just as satisfying.

But, there are a few things that we ask that you please do not do with the free designs.

What you can't do:

Give the file away to your friends. Instead, please direct them to our
website where they can then download their own copies of our
designs.

Sell the design files. We are offering these designs for free.

Modify the designs without our consent. If you wish to edit these files
(resizing, changing formats, etc.) we ask that you contact us before
making any changes."

It can't be made any clearer. Basically, they are saying, "Don't share the design. Share the location where you retrieved it." Is that too much to ask? This is only one company's policy, however, and many aren't as gracious. Some refuse to allow any commercial production of the free downloads and only allow an examination of the design, so it's important that all disclaimers and notices are read. It's rare, if ever, you will find a company who states you have a right to copy and sell the design to anyone -- not even to Grandma Pfaffie.

There are a few home hobby machine clubs on the net who exchange information regarding their sewing gripes and grins and often where to find a free copyrighted design. It's all well and good, though now and then, someone will request a certain file be e-mailed to them. When this occurs it's surprising how many members will straighten out the unsuspecting newbie with tons of postings in defense of the design's creator and directions to the site where it can be downloaded. They have a high respect for the sharing of designs and most often play by the rules. They are wise enough to see that if the rules are broken, new free designs will not be offered as often. A lesson should be taken from this non-professional world by some who make a living at it.

Unfortunately, there are those who dispense with any integrity that they ever had and, instead, see a quick buck as the best alternative. It's sad that so many don't know the meaning of the word, integrity. Designers work terribly long hours to achieve these little masterpieces and it's a horrible violation to their efforts. Every time a design is illegally transfered from one party to the next, it is stealing the food from somebody's table.

All in all, copyrights are there for a reason. Look for them. Pay attention to what they say. Watch for those who may unwittingly break the rules and help them understand the rules. If you don't know the rules, it's your responsibility to find out what they are and follow them! The embroidery industry has long thrived on word of mouth and it's actually your reputation at stake when you step over the fine line, so for your own sake, respect the work of others. In the many years I've been a commercial digitizer, I've seen nothing that spreads faster in the business than reports of dishonesty. So, stitch on, friends, but do so with integrity.