[amayausers]

In the case where someone wants to 'give' the customer the digitized  
files-then it should be up to that person to ASK when subcontracting  
to a digitizer 'WHO OWNS THE COPYRIGHT'...
because if the digitizer is doing the job as 'Works Made For Hire'  
and by federal copyright law, they do NOT own the rights to that.
But if buried in the fine print of your invoice or contract with this  
digitizing shop is one little word about copyright, then yes, they  
can own 'the controlling use of that digitizing file' but NOT the  
copyright of the artwork. That is NOT transfered by default. Another  
section of the federal law covers that.
Talk to the folks at Dakota-and find out why they had to drop ALL  
digitized designs with Auto and Truck designs that looked like actual  
vehicles....because the 'big three' auto makers OWN THE COPYRIGHTS TO  
THOSE VEHICLE DESIGNS, irregardless of Dakota's claim to 'ownership  
of digitized form'-they cannot allow anyone to use them. At all-you  
cannot order any designs from the 'old files'-they are forbidden to  
use them. I know, I called to get a limosine design that was in the  
catalog from 2001 or something that I had.
So just because a shop or someone did the digitizing, they DO NOT OWN  
THE COPYRIGHT TO THAT DESIGN.
However, if you prepare a screen for a teeshirt job-and charge the  
customer 'setup' charge for each screen, YOU OWN THAT SCREEN. But if  
you put 'SCREEN CHARGE' on the invoice-guess what-you SOLD THAT  
SCREEN to the customer and he CAN ask for it to give to another shop!  
BIG STINK in the screenprinting business when THAT was upheld in court.
So, if you charge the customer for 'digitized file' then he owns it- 
not you. But if you charge for 'setup and/or digitizing'-he is paying  
for the SERVICE, not the 'end product'-that file.
Lawyers get all their money 'splitting hairs'....and 95% of the  
embroiderers and screenprinters will never run into this. But it can  
and will happen somewhere, sometime!
Just one p'o'd customer with a sharp lawyer can screw you big time.
I've only been embroidering for 2 years, but I've been involved in  
graphic advertizing sales over 30 years, and running my own graphic  
screen and sign shop for 25 years....been to several seminars and  
followed many cases like this over the years.

Roland

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