1. If someone brings you artwork to print, what's your legal responsibility to make sure they have
permission to have it printed
This would be a good question to ask a trademark lawyer.
My gut reaction is that we are not expected to go out of our way to police the actions of our clients. When a customer wants a truck lettered, do we ask if it's a stolen vehicle? How would we even know for sure if the client has the right to commission a job? Sometimes it may seem obvious. When someone claiming to be from the Kansas City Royals baseball office calls our shop and orders sign work that is to have the franchise logo, we don't question it. But when someone wants the same logo put on a small lighted sign for their basement, it is probably a trademark infringement. My boss usually does it anyway. Sometimes he will say, "You know you're not supposed to do that, don't you." But, generally, his policy is "don't ask, don't tell."
What if the Royals office finds out about the basement sign? They might insist that the sign owner take the sign down, maybe even destroy it, like the Harley-Davidson executives in the example posted above. Or they might ignore it, knowing that it is not really a threat to their trademark (FYI: in the US, this would probably not be a copyright issue, but a trademark issue).
Would the Royals litigate? To what end? Would a judge even hear the case?
The whole point is to stop the infringement. Once the infringement stops, then it's 'game over.' What is left to do?
Infringement is usually not a crime in the same sense as say, murder, where the perpetrator needs to be caught and brought to justice. And, of course, the idea of sending a cease-and-desist letter to a serial killer is ludicrous. The point is, these crimes are not even in the same ball park.
Would our shop be in some kind of trouble for producing the basement sign? I suppose the Royals could send a letter demanding that my boss never infringe their trademark again. Or worse, we could never get any work from them again. Other than that, what would they do?
More than once, we have been in a situation where a customer has hired us to produce sign work that was a trademark infringement. We were not aware that the jods involved infringement, but in every case (I remember three) it was the client who was threatened with legal action. We were not. We were not even contacted by the trademark owner. In fact, in all three cases, we didn't even find out that infringement occurred till the clients came back to us to take the signs down and order new sign work.
In the worst case, a shoe store owner had to change his company name, pay a graphic designer to design a new logo, and then have us re-make his channel letters at three store locations. So we made all his signs twice, plus some additional signs for two new stores. Even worse, unbelievably, his new name was also an apparent infringement. So after another name change and another logo design, we built sign packages for the five stores again. On the third go-around, he wisely hired an attorney to do a trademark search before spending money on sign work.
In each instance, though, neither the store owner, nor the trademark owner claiming the infringement, accused our shop of any wrongdoing.
But what if there are financial damages to the trademark owner?
But what if a screen shop decides to print 10,000 T-shirts for profit, knowingly using someone's trademark on the shirts without permission. The trademark owner might not be satisfied with sending a cease-and-desist letter. What if the shop had already sold half the shirts and made some money? What if the trademark owner in some way lost money because of the shirt sales? The trademark owner may feel that they should receive a money award in addition to injunctive relief (an injunction is an order by a judge to stop the T-shirt production). The trademark owner might sue and could be awarded the defendant's profits from the sale of the shirts, in addition to any financial damages caused by the infringement. They could also be awarded legal costs, such as filing fees. In some cases the award could include attorney's fees. --information from
Intellectual Property. Patents, Trademarks d Copyrights by Richard Sim (2001, Delmar).
An infringement lawsuit is rarely done frivolously because it is so very expensive. When I took some classes in intellectual property at a community college here in Kansas City, my professor, a local patent and trademark lawyer, said that the main goal of a trademark owner whenever there is an infringement is to stop the infringement, to stop the wrongful use of the trademark. They always hope that a cease-and-desist letter will do the job. The trademark owner wants to avoid litigation, if possible.
Copyright and trademark are not the same
This string of posts tends to confuse trademark and copyright protections. In the US they are not the same. They each protect different things and in different ways, though there can be overlap. The standards to determine infringement are not the same, nor are the penalties. The costs for registration are not the same, either, and they are administered by two separate parts of the government. Copyright law was written into the US Constitution and is handled by the US Copyright Office, part of the Library of Congress. The US Patent and Trademark Office is part of the Department of Commerce.
A logo is generally not protected by copyright in the US. Most logos do not meet the standards to qualify for copyright protection.
In fact, the Copyright Office may have a tendency to not grant copyright protection to graphic arts layouts in general, such as sign layouts (see Linda Joy Kattwinkel's article on this:
https://graphicartistsguild.org/tools_resources/registering-your-copyright-in-graphic-design) However, artists portfolios can receive copyright protection. And logos can receive protection as trademarks, both at a national level and at state level. In certain cases, a logo can be protected by both trademark and copyright.
A copyright lawsuit can only be initiated in federal court in the US. There is no small claims court for copyright infringement, though there was discussion of it a couple years ago. There was a preliminary study done by the Copyright Office about the feasibility of having a small claims system for small copyright holders, but nothing has come of it.
Copyright protection in the US is automatic, its protection is for a limited time, and it does not need to be maintained to stay in force, though a copyright must be registered before a lawsuit can be initiated. Trademark protection is another story altogether. Trademark must be vigorously maintained or it can be lost. If it is properly maintained, it can last indefinitely.
The Coca-Cola logo illustrates this. It does not have copyright protection in the US. It may never have had it, as there is question as to who the original designer was in the first place. If it did have copyright protection, it has long since expired. But it does have protection as a trademark, and is one of the Coca-Cola company's most valuable assets. It has been valued at 70 billion dollars.