I know it's illegal to stitch out licensed designs, although I see hundreds of them being used on ebay selling hundreds of items.
A while ago I found some designs that are obviously from the disney movies but have been drawn in such a way that they don't look like the original characters.
I was wondering about designs that look like licensed characters but not exactly. The original artist has modified them in a way that they look similar but not exactly. For example a character that is clearly from Disney's snow white but doesn't LOOK like Disney's snow white. Is that infringement? I am new to this, bought loads of designs, would like to sell items using these designs but now have come across this. I would be grateful for some clarification. I know it's a fine line but hope someone can help. Thanks.
Only the copyright holder of the original work can give permission to use their work or give permission to some one to create new works from their copyrighted works.
The artist/digitizer of the designs you speak of is not the original artist but is someone that modified the artwork of someone else that holds the copyright to the original work.
So this artist/digitzer is selling illegal designs and could be held liable for infringment of the Disney copyright.
So no it is not alright for you to to use these designs for any purpose as it would be infringement too.
East Witch
There is good information on it regarding Copyrights and other information under the different tabs on the top of the page.
http://www.embroidery-and-designs.com/
Also if you have questions about different designs being sold and if it is legal to use them for personal use or for commercial use then join their Yahoo group and ask questions.
You can ask questions regarding Copyrights and Trademarks of designs so you understand the terms and know what is legal and what is not.
Here is the link to the Yahoo group.
http://groups.yahoo.com/group/Ebay-Action-Group/
East Witch
Last month two different digitizers had to take back designs that look too similar to Pippi Longstocking although they give them another name. The heirs of Astrid Lindgren have an eye on everything with the look or name of one of the books characters.
The main point is that a customer sees a likeness to the famous design and for that reason he buys it and not the high priced original.