A printing house prints orders based on clients' layouts: how to protect against claims
What is the issue?
It would seem that a printing house prints runs based on the layouts provided, does not sell them itself, and simply transfers them to the client. Can it really be held liable for intellectual property infringement? ("Might as well hold the truck driver liable for transporting sealed boxes of counterfeit goods," some might say.)
The short answer, however, is this: yes, in rare cases a printing house may be held liable for IP rights violations, although case law has developed a mechanism that allows printers to defend themselves using the argument of good-faith unawareness. Nevertheless, the larger the print run and the more obvious the violation, the higher the risks.
We were approached by the owner of a printing house. He was concerned about the possibility of claims from rights holders when printing customer-supplied layouts.
What we did:
- Revised the standard contract. Added clauses on the allocation of liability for IP rights violations, as well as representations and warranties from clients regarding the legality of the materials provided. First, this allows the printing house to pass through any losses to the client if it is held liable. Second, it requires the client to exercise greater diligence and verify IP ownership themselves.
- Developed an internal policy for reviewing incoming layouts for potential copyright infringements. This also has a dual effect: first, it helps the client establish a simple and clear internal verification system; second, having such a system demonstrates the client's good faith in the event of litigation.
Result:
The client obtained not only legal protection but also a clear operational algorithm for their employees, significantly reducing their future risks.
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