Software Copyright FAQ's

Q. Is it okay for my friends and me to copy each other's designs? A. No, I'm afraid not. Stock design companies invest large portions of their earnings in design development and they deserve a fair return on their investment. Stock designs allow you to save time, effort, and money. When you purchase a "twenty-pack" for $50 you are paying just $2.50 per design. How much would you spend if you had to have those designs custom-digitized? How long would it take you to digitize it yourself? When you share software you are depriving the company of income. You expect your full paycheck from your job, why shouldn't they?   Q. But it's just a disk, some paper and a plastic bag…. A. If a brain surgeon opens your cranium and takes a peek inside your brain, does he see ideas and intelligence? Just because he only sees a brain can he determine the content? And if he cannot measure any content does that mean you are mindless? No. When you purchase a package of stock designs, you are getting more than a disk, some paper and a plastic bag. Artists are employed to create the original artwork. Digitizers use high-end computers and expensive software to create and edit the designs to perfection. Machine operators repeatedly test the designs. Sample-makers construct projects to inspire you. Administrative staff enter pertinent information into a database for color sequences and special instructions for packaging and the web site. An artist scans all the sew-outs to create packaging graphics and images for the web site. The sample is photographed and packaging is created by an artist and proofed by the proofreader. The web developer creates the necessary HTML for the new design, formats all the graphics for the web, and updates the web site. The artist creates catalog pages and advertising. The printing company converts the digital files from the artist into physical packaging. A knowledgeable person must convert the master formats and recolor the designs for all the home formats. A programmer then takes those files and writes the installer code. Labels are printed and disks are mastered and duplicated. The administrative staff answer the phone, solve end-user problems, enter orders into the system, assemble packages, and ship the product. Companies that produce and sell stock designs must cover not only these development costs, but overhead as well (rent, utilities, taxes, payroll, promotion and advertising, training, etc). All the company's income is derived from the sales of these disk packs. From the flicker of an idea to having a new package ready to ship to the first customer can easily exceed $25,000 in expenses.   Q. That makes sense, but what do I get for purchasing my own designs? A. A lot. The benefits you stand to gain with purchased copies of designs include the continued availability of affordable, high-quality designs. You also get full packaging with color graphics, instructions, and color sequences. You get phone support and valuable information provided via the internet. You don't risk the chance that you will get a computer virus from a copied disk. Resisting the temptation to copy design will allow many more designers to share their creativity, thus giving you a larger library of designs from which to choose.   Q. What exactly does the law say about copying software? A. Briefly, the law says, "It is illegal to make or distribute copies of copyrighted material without authorization," including software. Penalties are fines up to $50,000 and jail terms up to five years. The law is very specific concerning copyright violations. Since copyright laws are federal laws, the copyright owner - the plaintiff - will bring the suit in a federal court in its state of residence. The infringer, or defendant, will have to defend the suit in that court. As you can imagine, the costs to defend a suit of this nature out of state can quickly exceed $50,000. Under copyright law, title17 of the U.S. Code, criminal action is also available to the copyright owner under title 18 of the U.S. Code. The criminal aspect of the law can result in seizure of the equipment and imprisonment. Under statutory copyright laws, on the civil damages aspect, a defendant who is found guilty can be fined between $500 and $20,000 per violation. The violations can be compounded when you make a copy of a copyrighted design as you are then liable for any copies made from that illegal copy that you have put in another's hand. There are additional penalties for printouts or sew-outs of illegally duplicated designs. As you can easily see, violating copyright laws makes so sense economically; it is far less expensive to purchase a legal copy.   Q. Does that mean I can't make things with these designs to sell? A. You may embroider the designs and sell as many of the sewn product as you wish. You may not sell, trade, share, rent, or otherwise distribute the original or modified versions of any design. An exception to this statement is the use of licensed designs such as Sesame Street™ or Precious Moments™. If such a license applies, it will be stated on the outside of the packaging. Sewing and selling these designs can result in stiff penalties.   Q. But don't I only have to change it 10% to make it my own? A. No, this is a misconception about copyrights as it applies to the graphics arts industry. In fact, by changing the original design and then selling the new version of the original in any manner, the person doing this has moved into additional violations of law, not only copyright law, but general tort laws.   Q. So I'm never allowed to copy software for any reason? A. Actually, you're allowed to make one backup copy of your software, if one wasn't already included in the package.   Q. But I bought the disk, therefore I own it and I should be free to do as I wish with it. I own my car and I can let others use it - what's the difference? A. When you buy a disk, all you truly own is the physical diskette itself, not what is on it. The designs are licensed for you to use in specific ways; the copyright holder owns the content. A label on the envelope containing the diskettes states that if you do not agree with the license, you should not open the envelope. By opening the envelope you acknowledge the licensing agreement and are therefore subject to the copyright laws, which protect the designs. When you share designs you are typically not loaning the disk to another person, you are giving them a copy of the disk - in other words, you have become a bootleg manufacturer. When you loan your car to another, as long as they are using the car you cannot; you are not duplicating the car so that you each have one.   Q. What about free designs on the Internet - can't I copy those? A. You must carefully read any stipulations on the web site. Some free designs may be shared freely with an acknowledgment of their source. Others may only be downloaded for personal use and not distributed. Many web sites use free designs as a lure to attract visitors to their site. In any case, the copyright remains with the creator and you may not sell the designs.   Q. Do the same rules apply to user/embroidery groups - I always figured the reason they got together was to share software. A. Many software companies offer special user-group programs, which may include the right to copy the software for archival purposes. In any case, it is the responsibility of user groups to encourage their members to observe copyright laws, and software companies rely on them to do so. The same copyright responsibilities apply to schools and professional training organizations.   Q. At my company, we pass disks around all the time and don't think another thing about it. It must be OK since we all work for the company that purchased the software in the first place. A. Well, unfortunately "soft lifting" is common in some corporations. Employees make extra copies of their business software to take home, or copies are made for additional computers within the office. But corporations, too, are bound by copyright laws, just like everyone else. The rule to follow is one software package for every computer. Companies as well as individuals may have their equipment confiscated, be required to pay hefty penalties, plus spend time in prison. Why ruin your life?   Q. I'll bet most of the people who copy software don't even know they're breaking the law. A. Most people don't purposely break the law - they would never consider, for instance, stealing money out of someone's pocket. However, when you share software, you essentially are stealing money out of the developer's pocket. Unfortunately, when it comes to copyright violations, ignorance is no defense. If you're part of an organization, see what you can do to initiate a policy statement that everyonerespects. And as an individual, you can spread the word that sharing is stealing. This information is published by the Embroidery Software Protection Coalition (ESPC), which is a non-profit group of embroidery software and design manufacturers whose purpose is to defend the integrity and quality of embroidery products by promoting copyright compliance. For more information about joining the ESPC or about copyright laws, visit our website at www.embroideryprotection.org or call toll free at 888-921-5732. COPYRIGHTS YOU SHOULD KNOW Your purchase of embroidery software grants you a license for: Embroidering any item for personal use Installing the software on one computer or sewing machine of your choice Modifying size and color of designs for personal preference Stitching out licenses designs (like Sesame Street™, Disney™, Precious Moments™, etc.) on garments and items for personal use only Restrictions involving the sale of sewn out designs may be prohibited, check packaging for copyright information Benefits of purchasing software: All product documentation, customer support and information are included Registered users receive free update information Helps keep your computer virus free Supports future product development while holding down the cost of goods Copy WRONGS: Duplicating software to sell, share, or distribute free Distribution of any modified copyrighted computer files of designs Installation on more than one computer, sewing machine, or disk for multiple users Uploading, downloading, emailing, or transferring electronic files of copyrighted designs on the internet, computer network, direct connection, etc. Check the individual products you have purchased for additional restrictions This information is published by the Embroidery Software Protection Coalition (ESPC), which is a non-profit group of embroidery software and design manufacturers whose purpose is to defend the integrity and quality of embroidery products by promoting copyright compliance. For more information about joining the ESPC or about copyright laws, visit our website at www.embroideryprotection.org or call toll free at 888-921-5732.

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