Embroidery Copyright FAQ
Copyrights & Trademarks
Issues regarding Copyrights and Trademarks frequently arise in the embroidery industry. Most embroiderers know that they cannot embroider a certain little mouse without licensing from a certain company, but others are not aware it is illegal to copy many stock designs to give to a customer as part of their “logo”.
Stock designs ownership is an important issue. Quoting Bonnie Landsberger, owner of Moonlight Designs, “speaking of stock design that your company has legally purchased and given YOU ownership of use. You are entitled to use this stock design according to the “use” that the stock design house has stipulated (read the copyright or ask the stock house sales person). Most will stipulate that it’s for the purposes of meeting the embroiderer’s customer’s need. You are charging them rightfully a setup fee which is due for your “studio time” – the time your shop must erect a complete design with the use of stock. Since you used a stock design for this purpose, you are correct in saying that it can’t be passed on to your customer to be sewn elsewhere without violating your agreement with the stock house who has given YOU ownership of use. On the other hand, if your customer walks in with a stock design on a diskette and asks for you to add lettering and you charge them for the setup it then belongs to the customer. You may not use the stock design that they brought in for anyone else’s job. Unless you first purchase the ownership of use of the design legally from either that customer who brought in the master copy of the design, who then relinquishes their right to it, or from the stock house who owns the copyright.”
Ownership of use is the key. He who purchases the master copy from the stock design company carries the ownership of use. It is essential to your embroidery business that you understand the licensing of your stock design supplier. Don’t make copies and distribute them, even for your own use at multiple shops, without making sure you understand the consequences. Don’t add lettering to one of your stock designs and make a copy of the “logo” for your customer to take with them. If you do you may very well be in violation of the licensing agreement.
What about the embroidery legend that says making a copyrighted design for your own use is ok? Melissa Thompson-Maher from the ETA shares this tid-bit from the ETA’s member benefits: “According to our research, copyright law generally allows the making of ONE self made copy of a copyrighted item for your personal use only. You may not make a profit on this reproduction.” ONE not for sale! In other words if you reproduce a copyrighted item and put it on your sweatshirt you may be ok. However Melissa goes on to say “This does not stop a copyright owner from questioning whether you have made only one copy for your use and possibly filing a cease and desist letter.” What if you make gifts for the holidays from a copyrighted item? No profits there right? Melissa says “Even if you make several items and give them as gifts, you may be liable for damages and penalties.”
Bonnie tells us “a copyright is obtained automatically by the creator the moment the work becomes tangible form. What cannot be copyrighted includes ideas, facts, titles, names, short phrases, and blank forms. A name can be trademarked. You cannot use somebody’s trademark in a way that would unfairly hurt the value of the mark, or in a way that might make people confuse you with the real owner of the mark, or which might allow you to profit from the mark’s good name.”
The ins and outs of copyrights and trademarks can be very confusing, but the most basic rule holds true. When in doubt don’t do it! Losing your machines, computers and inventory, facing fines and prosecution are real risks when violating these laws.
It is important to remember that you should consult your attorney for specifics, as your situation may differ.
For more information contact the U.S. Copyright Office: http://www.copyright.gov/