PPB May 2015

Kippie Helzel, MAS

Vice President, Sales

Custom Plastic Specialties, Inc.

UPIC: keystone

When a repeat order is placed by a

distributor who did not do the original

order, we ask the distributor to provide

a letter from the end user authorizing

the use of that same art for this “new”

order. With that, we produce the order

with a reorder set-up charge; or, if it is

a co-op-program item with us, without

a set-up charge according to our pro-

gram guidelines.

Joanne Worrall

President

JPR Consulting, Inc.

UPIC: jprconsl

It depends if and how the art was

billed in the first place. When a distrib-

utor uses a customer’s logo, trademark or

provided graphic for a promotional

piece, they are “licensing” the logo for

that specific job or piece. The customer

is not selling their rights to that logo,

they’re just permitting its use on a spe-

cific product they’re ordering.

On the other hand, if the distribu-

tor creates a unique design for a cus-

tomer, doesn’t use an actual logo, trade-

mark or trade name,

and

if the distribu-

tor doesn’t charge the customer sepa-

rately for the design, artwork or set-up,

then I believe the distributor who did

the initial creation owns that art. If the

distributor has charged the customer

for set-up or art, then the customer

owns the design.

Glen D. Eley

Owner

Eley Imprinted Products

UPIC: ELEYP001

The quick answer is the end user

supplies the logo or art and owns it.

Even if new art was created for this

order by the distributor salesperson

when he worked for another distribu-

tor, it should never be used for other

client companies’ orders. So your new

employee got a reorder from the same

company. He owns no art. The original

client should merely provide the art or

logo in question to your employee and

place the reorder.

Now that this salesperson works

for you, he or she brought you new

business from past clients, so the client

must give the salesperson the art or

logo, which they own, to use on this

order. Your salesperson owns nothing,

unless they created something special.

It’s possible your new salesperson

brought this art file with them and

now you both want to use it. Well, it’s

done all the time, but I don’t think

it’s kosher.

Dawn Ruler, MAS

Promotional Consultant

Cedric Spring & Associates

UPIC: CEDR0001

I have run into this issue in the

past. Most suppliers will release the

artwork with a release signed by the

end customer stating they approve use

of the artwork for an order. I usually

supply a copy of the letter to my client

and ask him or her to print it on their

own letterhead before signing and

returning it to me to send to the

factory. I have not had any clients

take issue with this.

David MacMurdo

Director, Marketing & Business

Development

Wilson Dunn Promotions Ltd.

UPIC: WILS0001

The artwork is ultimately owned by

the client. The more relevant question

likely brings us back to the ethics of this

particular scenario and refers back to the

proper channel being used for processing

the initial order and its artwork. The

distributor that initially processed this

artwork and order for the client holds

title to that artwork, assuming he or she

paid the artwork charges and did not

pass them along to the client. If the

salesperson moves on to another distrib-

utor and maintains the same client, then

the new distributor should process

future orders for this client after paying

full set-up charges again to re-establish

the same artwork under the new distrib-

utor banner. This is fair to the past dis-

tributor and shows great ethics from the

new distributor processing this business.

This also keeps the supplier from being

placed in a difficult situation.

The supplier ultimately wins on this

as there is no guarantee they will not

merely use the same artwork; however,

this is out of the distributor’s control.

One stipulation: if the client actu-

ally paid the set-up charges to create

the initial artwork for the first distrib-

utor, one could argue the client owns

it, fully allowing the second distributor

to use the existing supplier artwork.

Again, to avoid any moral or ethical

issues, it is likely better for the new

distributor to take the high road and

start the process as if it were new and

pay the charges the first time. The fact

they have gained the new client should

be enough.

Susan P. Kopperman

President

Careerlook

UPIC: CARE8384

I read this question with a smile on

my face. I always tell my customers they

own their artwork. I charge them an art

fee and set-up fee. When they place an

order with me, it is using their artwork

they have paid for. It doesn’t matter

where I am. It is their proprietary art-

work. I do the same with an embroidery

tape. My fee is a one-time fee and the

customer owns the tape. If they choose

to order from another distributor, they

can contact me for their artwork and I

am happy to send it to them.

Lee McCubbin, CRM

Co-Owner

McCubbin Trophy & Engraving

UPIC: mctrophy

In order to fairly answer this ques-

tion, I need more information. Did the

customer submit the artwork? Did the

distributor develop the art? Was a third-

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• MAY 2015

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