Copyrights: What’s the real deal? Part II of II

So we’ve talked about customers coming in with designs not belonging to them but what about the issue of who owns the designs, the actual stitch files, which were digitized legally?


Large stock design companies have designs you can purchase online, such as Dakota Collectibles, to use to embroider goods. When you purchase a design from them, it’s understood (and written in their use agreement) that you’re purchasing the license to use the design, not the rights to the design itself. Therefore you may not give, share or sell these designs to anyone else.

With regard to the legality of a design you (embroiderer) are producing garments with, if you digitized the design, it belongs to you. You may decide to transfer the copyright to the company or person you digitized the design for. If the design is given without that protection, the recipient runs the risk that minds will be changed and their right to use it later will be challenged.

When the design is provided to you (embroiderer) by an outside digitizer, unless and until the rights to the design are transferred in writing to you (or anyone), they remain the property of the creator (digitizer). This is why you cannot give or sell the design later to someone else, since it does not belong to you. You are only being given the license to use the design to produce garments for your customer.

If you’ve been in the embroidery business for a while, you’ve probably unwittingly reproduced a copyrighted work. Since you can’t know every design out there but need to cover yourself and your business, a copyright indemnification clause, added to your company’s order forms, will in most cases establish your policy, protect you and set your customer straight. Check your state’s copyright and trademark statutes or a copyright lawyer to be certain your copyright clause covers you.

I’ve turned down many jobs of people wanting me to digitize Mickey Mouse, Donald Duck, Betty Boop or the Pink Panther. People actually get really pissed when I tell them no, especially when they’ve (illegally) incorporated them into their company logos…yes, it happens. You have to do the right thing. Protect yourself and your business.

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Information contained in this article is for informational purposes only and should not be taken as professional legal advice. Companies mentioned in this article are used only as examples. Contact a copyright lawyer in your area for specific legal determinations and issues.

For more information about NeedleUp's digitizing services, please visit our website at www.needleup.com where you can view some of our most recent work and get pricing and more information on contacting us. Donna Lehmann is owner of NeedleUp Digitizing and she can be reached at 303-287-6633