Embroidery Software Protection Coalition
Encyclopedia
The Embroidery Software Protection Coalition (ESPC) is a United States embroidery industry trade group
. Its primary activity is the investigation and prosecution of alleged acts of copyright infringement
. The group has drawn media attention for its campaign of settlement demands against individual buyers as well as sellers of embroidery patterns and software. It drew further attention with a 2006 defamation
suit against two individual Internet critics, in which it attempted to subpoena the identities of every subscriber of the critics' electronic mailing list
.
On August 3, 2005, the United States District Court for the Northern District of Texas
approved the dismissal of a lawsuit brought by the ESPC and ESPC member companies against eBay
and PayPal
, pursuant to a stipulation agreement between the parties.
On September 7, 2005, WNDU-TV
reported that the ESPC was mailing settlement demands to individual eBay buyers. According to one such demand letter, dated October 17, 2005, the buyers were identified by personal records provided by eBay and eBay sellers.
The October 17 letter further claimed that buyers, by purchasing and possessing unlicensed copies of embroidery software or patterns, had violated United States copyright law. "By purchasing the counterfeit goods, they're encouraging the pirates to stay out there and put the legitimate businesses out of business," said Carole Faulkner, attorney for the ESPC, in the September 7 WNDU-TV report. A University of Notre Dame
law professor disagreed, telling WNDU-TV "copyright laws make it illegal to distribute copies, not buy them".
On June 28, 2006, the ESPC responded to two such critics, against whom the ESPC had previously filed copyright infringement lawsuits, by filing a new lawsuit. In the new lawsuit, the ESPC alleged defamation, intentional infliction of emotional distress
, conspiracy
, business disparagement, and tortious interference
.
The ESPC subsequently petitioned for a subpoena seeking the identities of every subscriber to the two critics' Internet mailing list. In September 2006, after the Electronic Frontier Foundation
intervened on behalf of the anonymous targets of the subpoena, the subpoena was withdrawn.
The referenced critics, since February 2006 have entered an out of court settlement with ESPC. Prior out of court settlements show that the infringers hand over lists of buyers and individuals to whom the machine embroidery designs were sent.
Industry trade group
A trade association, also known as an industry trade group, business association or sector association, is an organization founded and funded by businesses that operate in a specific industry...
. Its primary activity is the investigation and prosecution of alleged acts of copyright infringement
Copyright infringement
Copyright infringement is the unauthorized or prohibited use of works under copyright, infringing the copyright holder's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works.- "Piracy" :...
. The group has drawn media attention for its campaign of settlement demands against individual buyers as well as sellers of embroidery patterns and software. It drew further attention with a 2006 defamation
Slander and libel
Defamation—also called calumny, vilification, traducement, slander , and libel —is the communication of a statement that makes a claim, expressly stated or implied to be factual, that may give an individual, business, product, group, government, or nation a negative image...
suit against two individual Internet critics, in which it attempted to subpoena the identities of every subscriber of the critics' electronic mailing list
Electronic mailing list
An electronic mailing list is a special usage of email that allows for widespread distribution of information to many Internet users. It is similar to a traditional mailing list — a list of names and addresses — as might be kept by an organization for sending publications to...
.
eBay Buyer Infringement Claims
United States District Court for the Northern District of Texas
The United States District Court for the Northern District of Texas is a United States district court. Its first judge, Andrew Phelps McCormick, was appointed to the court on April 10, 1879. The court convenes in Dallas, Texas with divisions in Fort Worth, Amarillo, Abilene, Lubbock, San Angelo...
approved the dismissal of a lawsuit brought by the ESPC and ESPC member companies against eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
and PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, pursuant to a stipulation agreement between the parties.
On September 7, 2005, WNDU-TV
WNDU-TV
WNDU-TV is a television station in South Bend, Indiana. The station is an affiliate of the NBC television network. Its transmitter is located in South Bend. WNDU-TV broadcasts in HDTV on Channel 42, additionally simulcasting a local Doppler radar image...
reported that the ESPC was mailing settlement demands to individual eBay buyers. According to one such demand letter, dated October 17, 2005, the buyers were identified by personal records provided by eBay and eBay sellers.
The October 17 letter further claimed that buyers, by purchasing and possessing unlicensed copies of embroidery software or patterns, had violated United States copyright law. "By purchasing the counterfeit goods, they're encouraging the pirates to stay out there and put the legitimate businesses out of business," said Carole Faulkner, attorney for the ESPC, in the September 7 WNDU-TV report. A University of Notre Dame
University of Notre Dame
The University of Notre Dame du Lac is a Catholic research university located in Notre Dame, an unincorporated community north of the city of South Bend, in St. Joseph County, Indiana, United States...
law professor disagreed, telling WNDU-TV "copyright laws make it illegal to distribute copies, not buy them".
Defamation Suit
As of April 28, 2006, the ESPC has claimed to represent seven United States embroidery publishers and distributors. The legitimacy of the ESPC is disputed by critics, who suggest that the ESPC may be associated with only one publisher, Great Notions Embroidery Designs.On June 28, 2006, the ESPC responded to two such critics, against whom the ESPC had previously filed copyright infringement lawsuits, by filing a new lawsuit. In the new lawsuit, the ESPC alleged defamation, intentional infliction of emotional distress
Intentional infliction of emotional distress
Intentional infliction of emotional distress is a tort claim of recent origin for intentional conduct that results in extreme emotional distress. Some courts and commentators have substituted mental for emotional, but the tort is the same...
, conspiracy
Conspiracy (civil)
A civil conspiracy or collusion is an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective....
, business disparagement, and tortious interference
Tortious interference
Tortious interference, also known as intentional interference with contractual relations, in the common law of tort, occurs when a person intentionally damages the plaintiff's contractual or other business relationships...
.
The ESPC subsequently petitioned for a subpoena seeking the identities of every subscriber to the two critics' Internet mailing list. In September 2006, after the Electronic Frontier Foundation
Electronic Frontier Foundation
The Electronic Frontier Foundation is an international non-profit digital rights advocacy and legal organization based in the United States...
intervened on behalf of the anonymous targets of the subpoena, the subpoena was withdrawn.
The referenced critics, since February 2006 have entered an out of court settlement with ESPC. Prior out of court settlements show that the infringers hand over lists of buyers and individuals to whom the machine embroidery designs were sent.