I heard that MTC is being sued

[Reddy]

is SCAL going to be too?? I"m wondering if I need to delete files or not

[GrammyKrausse]

edit

[Sweetness4713]

Why would you want to delete files?? It's not like they are going to get into anyones computer??? As for SCAL??? They aren't doing anything illegal???

[Deloris]

Check out this thread.

http://make-the-cut.com/forum/comments. ... e=1#Item_0

It has a copy of the actual complaint that was file. The details are under post by Jan #713 towards the bottom of her post. There's a pdf file called complaint. Tried to upload the pdf file, but this forum isn't set up to accept pdf file uploads.

We better be careful what files we post and delete any that are questionable.

Look at page 13 #72. This could apply to any company whose copyrighted characters we trace and upload to this forum.

[Reddy]

I like to use Disney coloring book pages & have them on my blog -- I do state that I can't sell since it is a Disney copyright image & share the files for free.

I also wonder if the people who go into CDS & printscrn the images would get PC in here sueing for using their images (I was thinking about trying that but forgot where I saw the instructions so I haven't done that yet)

[Deloris]

Deleted post

[Sweetness4713]

This is what it reads.. And anyone is entitled to this court document..

UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF WISCONSIN
MILWAUKEE DIVISION


PROVO CRAFT & NOVELTY, INC.,
a Utah corporation,

Case No.

Plaintiff,

v.
MAKE THE CUT, LLC,
a Wisconsin limited liability company,


and

ANDREW A. HEINLEIN,
an individual,

Defendants.

COMPLAINT AND JURY DEMAND


Plaintiff Provo Craft and Novelty, Inc. (“Provo Craft”), by its attorneys, brings its
complaint against Defendants Make the Cut, LLC (“Make the Cut”) and Andrew A. Heinlein
(“Mr. Heinlein”) (together, “Defendants”) as follows:

PARTIES

1. Provo Craft is a Utah corporation with a principal place of business located at
151 E 3450 North, Spanish Fork, Utah 84660.
2. Upon information and belief, Defendant Make the Cut is a Wisconsin limited
liability company with a principal place of business in Wisconsin at W186 S7675 Lincoln Drive,
Muskego, WI 53150.
3. Defendant Mr. Heinlein is an individual with a residence at 606 Lake Bluff Drive,
Oconomowoc, WI 53066. Upon information and belief, Mr. Heinlein is the sole member and

proprietor, and primary decision-maker, of Make the Cut. He is personally involved in, and
responsible for, all of its actions alleged herein.

JURISDICTION AND VENUE

4. Counts I-IV arise under a Federal statute, 17 U.S.C. §§ 101 et seq. (The Copyright
Act) and so this court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338.
5. Counts V-VII are actions under the Lanham Act, 15 U.S.C. §§ 1051 et seq. This
Court has subject matter jurisdiction over Counts V-VII pursuant to: a) 28 U.S.C. §§ 1331 and
1338 relating to “federal question” jurisdiction; and b) § 39 of the Lanham Act, 15 U.S.C.
§ 1121, giving this Court jurisdiction over all trademark and unfair competition actions arising
under the Lanham Act without regard to the amount in controversy.
6. This Court has an independent basis for jurisdiction in accordance with 28 U.S.C.
§ 1332 because there is diversity of citizenship between the parties and the amount in
controversy exceeds $75,000.
7. Personal jurisdiction and venue are proper in this Court pursuant to 28 U.S.C.
§ 1391.
BACKGROUND ALLEGATIONS

8. Provo Craft is an innovative maker of consumer craft products that help people
with their personal craft projects.
9. One such product is a personal electronic cutting machine bearing the trademark
CRICUT®. An image of a CRICUT® personal electronic cutting machine is shown here:
2



10. The CRICUT® personal electronic cutter cuts a variety of materials in several
desirable patterns with or without a computer. People use the cut patterns for scrapbooks, for
greeting cards, for cake decorations, and for a variety of other applications.
11. Provo Craft sells well over 100 different cartridges that plug into the CRICUT® e-
cutter, and these cartridges have computer programs that control the CRICUT® e-cutter to offer a
large assortment of patterns, letters, numbers and phrases for a variety of applications and
occasions.
12. Sales of CRICUT® cartridges comprise an important component of Provo Craft’s
overall sales and profits.
13. The photo above shows a cartridge plugged into the CRICUT® e-cutter at the
front right part of the machine. The photo below shows an enlarged image of a cartridge:
3



14. Provo Craft also sells a personal computer-based computer program called
CRICUT DESIGNSTUDIO® that allows people to view and manipulate all of the patterns that
Provo Craft offers. People can buy CRICUT DESIGNSTUDIO® and load it into their personal
computers either with a CD-ROM disc or from the internet.
15. As illustrated below, CRICUT DESIGNSTUDIO® works together with the
CRICUT® e-cutter shown above, and it allows people to actually cut a given pattern from Provo
Craft’s collection of patterns.
16. However, Provo Craft has security features in place to protect its patterns
whereby people can cut a pattern from CRICUT DESIGNSTUDIO® only if the applicable
cartridge – presumably one that they own - is plugged into the CRICUT® e-cutter, as illustrated
below.
4



17. Provo Craft recently learned about the existence of a new company that calls itself
Make the Cut LLC, and its apparent owner, Andrew Heinlein (the Defendants).
18. Defendants are marketing a personal computer-based software product called
MAKE-THE-CUT! which, according to Defendants, provides a computer interface that allows
people to cut virtually any shape they can obtain using a CRICUT® machine without needing to
purchase Provo Craft’s cartridges. As with CRICUT DESIGNSTUDIO®, people can buy
MAKE-THE-CUT! software and load it into their personal computer either with a CD-ROM disc
or from the internet.
19. Defendants had advertised and sold early versions of this software to permit their
users to make crude copies of virtually any pattern the user could find, including Provo Craft’s
copyrighted CRICUT® patterns. The copies were not easy to make, and they were not easy to
make well, especially if the pattern was complicated.
20. Defendants have been offering services that allow their users to share those crude
copies with each other. For example, Defendants host an electronic “gallery” on the internet
5



where their customers and users can post patterns for others to copy; and people have actually
posted copies of Provo-Craft’s copyrighted patterns for others to copy. This is explained below
in greater detail in Count III.

21. Defendants had publicly claimed to have copied several of the designs from the
CRICUT® cartridges. Defendant Heinlein has said things in his “Make the Cut! Forum” such as:

I am adding ‘Cartridge Backup’ where you can create a copy of the
[Provo Craft] cartridges, but you can’t distribute those. It would
be like ripping a music CD then sharing all the MP3s” and “But,
none-the-less, I have it [the ‘cartridge backup’ software] working –
I have all my cartridges as SVG files, it’s just not user friendly
yet.” (Clarification added in brackets).

22. An SVG (“scalable vector graphic”) file is a non-proprietary electronic file format
that contains cutting path instructions that can be used to drive the CRICUT® e-cutter to cut a
pattern.
23. Defendants’ statement in paragraph 21 above is an admission 1) that Defendants
had made unauthorized and illegal copies of Provo Craft’s patterns, and 2) that Defendants had
circumvented the security features in Provo Craft’s CRICUT DESIGNSTUDIO® software.
24. Defendants’ statement in paragraph 21 indicated that they had a circumvention
capability, but that they were not yet ready to traffic in it.
25. But then in mid-March 2010, Defendants released a new version of their software
including a new feature that allows users to circumvent the copying protections in the CRICUT®
products and make higher quality copies of the patterns in which Provo Craft owns copyrights.
These copies are higher in quality than the crude copies that the earlier versions of the software
enabled.
6



26. Moreover, the new feature allows people to make unauthorized copies or
derivative works of the cutting instructions for the patterns, which can be shared with other
users.
27. At the same time, Defendants are using the trademark slogan “UNLEASH THE
POWER OF YOUR CRICUT!” on their packaging, as shown below. Defendants use the same
slogan in a prominent way on their internet web site.
28. Defendants have at least one web site where they sell their software product and
where they host a forum and a gallery. See www.make-the-cut.com.
CAUSES OF ACTION

COUNT I – ILLEGAL CIRCUMVENTION OF SECURITY MEASURES
UNDER 17 U.S.C. § 1201(a)(1)


29. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
30. Provo Craft owns copyrights in the patterns cut by its CRICUT® e-cutting
machines, and derivative works.
31. For example, Provo Craft owns copyright registrations in connection with the
collection of patterns on a cartridge that it sells as the Animal Kingdom cartridge (shown above
in ¶ 13). One such copyright registration is VA0001687393. (Exhibit A)
32. Provo Craft owns dozens of other such registrations for other patterns.
7



33. Provo Craft effectively controls access to these patterns (and all of the patterns on
all of its other cartridges) with a variety of technological measures.
34. For example, Provo Craft allows users to make copies of its patterns only if they
have the cartridge on which the cutting instructions for the patterns are stored.
35. Each cartridge contains instructions for creating the patterns via the CRICUT® e-
cutter; and the cartridge itself has security features that prevent copying.
36. The pattern instructions for all of the cartridges are also resident on the separate
computer software package called CRICUT DESIGNSTUDIO®.
37. Provo Craft owns copyright registrations for the computer programs in CRICUT
DESIGNSTUDIO®, including the cutting instructions for the patterns such as the Animal
Kingdom patterns. These CRICUT DESIGNSTUDIO® registrations include Registration
Numbers TXu 1-588-137 and TXu 1-586-115. (Exhibit A)
38. CRICUT DESIGNSTUDIO® allows people to see a computer screen image of
every pattern that Provo Craft sells on its cartridges. But people cannot use CRICUT
DESIGNSTUDIO® to cut any patterns with a CRICUT® unless they also possess the specific
cartridge that has the pattern to be cut.
39. The CRICUT DESIGNSTUDIO® software has a security feature that checks to
see if the user’s cartridge is plugged into the user’s CRICUT® cutting machine before it will
allow the user to cut any selected pattern. And even then, the user is not able to make a copy of
the cutting instructions.
40. This security feature has been effective for Provo Craft in controlling access to its
copyrighted patterns.
8



41. Provo Craft has still other security features on the CRICUT DESIGNSTUDIO®
software that prevent unauthorized access to the cutting instructions and ultimately to the
patterns.
42. Defendants are making, using and selling a new software feature that circumvents
the security features on the CRICUT DESIGNSTUDIO® software to allow a user to access the
protected and copyrighted cutting instructions.
43. In fact, one of Make the Cut’s customers recently posted a video in the Make the
Cut Forum showing other people how to use Make the Cut’s new circumvention feature to
circumvent the security on the Animal Kingdom patterns and access them. A screen capture
from that video is displayed here:
44. Now other Make the Cut users can share this access with a large number of still
other users in a viral manner.
45. This potentially unlimited access – and the copying, saving and sharing that
follows – is not authorized by Provo Craft, and until now has been prevented by the security
features / technological measures that Provo Craft describes above.
9



46. As a result, when Defendants and third parties use this new feature in the MAKE
THE CUT! software, they can access the copyrighted instructions and the copyrighted patterns in
a manner that infringes, or facilitates infringing, rights protected by the Copyright Act.
47. Now Make the Cut users may also copy the contents of cartridges and then resell
the cartridges while retaining the contents of the sold cartridges.
48. This new software feature that Defendants designed or produced is primarily for
circumvention.
49. Accordingly, Defendants are violating 17 U.S.C. § 1201(a)(1); and this violation
is willful.
50. Provo Craft is seriously and irreparably injured by this conduct because it permits
a large number of people to access and use Provo Crafts patterns without paying for them.
COUNT II – TRAFFICKING IN ILLEGAL MEANS FOR CIRCUMVENTION OF
SECURITY MEASURES UNDER 17 U.S.C. § 1201(a)(2)


51. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
52. Defendants are manufacturing, offering to the public, providing and otherwise
trafficking in the software feature as detailed above.
53. Defendants made the software feature available to others despite only limited
commercial significance other than circumvention.
54. Defendants marketed the software feature for use in circumvention of the
controlling technological measures.
55. Accordingly, Defendants are also violating § 17 U.S.C. § 1201(a)(2).
56. Provo Craft is being severely and irreparably damaged by this activity.
COUNT III - INDUCEMENT AND CONTRIBUTORY COPYRIGHT INFRINGEMENT

57. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
10



58. Defendants are inducing others to infringe Provo Craft’s copyrights by making
unauthorized copies of the copyrighted patterns, and unauthorized copies or derivative works of
the cutting instructions.
59. Defendants are inducing others to infringe at least by telling them that they can
and should make unauthorized copies and derivative works, by explaining to them how to
accomplish this, and by providing the means for them to do so.
60. Defendants are also contributing to infringement by providing the means for
others to make unauthorized copies and derivative works, knowing that people will use the
means in this way.
61. For example, shown below are screen shots from a gallery that Defendants
maintain on the internet. People upload patterns into the gallery and other people can download
the patterns from the gallery.
62. The screen shots show that people are copying Provo Craft’s copyrighted patterns
and that Defendants are assisting with the copying. The copyrighted patterns include the images
referred to below as the “Bughead,” the “cricut head,” and the Forever Young Silhouette.”
11



63. Provo Craft has a registration covering what is referred to in the gallery as
“Bughead” and “another cricut head.” It is U.S. registration VA0001338653. (Exhibit A)
64. Provo Craft has a registration covering what is referred to in the gallery as
“Forever Young Silhouette.” It is U.S. registration VA0001706213. (Exhibit A)
65. People are infringing Provo Craft’s copyrights as a result of Defendants’ activities
in violation of 17 U.S.C. § 101 et seq., and especially § 501 et seq.
12



66. Provo Craft is being damaged by the infringement that Defendants induce and
support.
67. Defendants’ inducement and contributory infringement is knowing and willful.
COUNT IV – COPYRIGHT INFRINGEMENT

68. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
69. Provo Craft created a number of patterns that are original and creative. The
patterns are stored on CRICUT® cartridges that it sells.
70. Provo Craft owns valid copyrights for patterns that are stored on its CRICUT®
cartridges.
71. As reported above, Provo Craft has registered its copyrights for many of its
patterns, and has applied to register its copyrights for several others.
72. Defendants are infringing these copyrights by, among other things, making
unauthorized copies of the copyrighted patterns, and hosting the gallery that includes and
displays unauthorized copies.
73. As reported above, Provo Craft also owns copyrights in the computer programs in
CRICUT DESIGNSTUDIO®.
74. Defendants are infringing these copyrights by copying, or making derivative
works of, at least portions of the computer programs comprising CRICUT DESIGNSTUDIO®..
75. This is a violation of 17 U.S.C. § 101 et seq., and especially § 501 et seq.
76. This is also a willful violation of Provo Craft’s copyrights.
77. Provo Craft is being damaged by this violation.
COUNT V – TRADEMARK INFRINGEMENT UNDER § 32 OF THE LANHAM ACT

78. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
13



79. Provo Craft owns the following U.S. trademark registrations for its CRICUT®
marks, among others (Exhibit B):
Mark Reg. No. Reg. Date International Class - Goods
CRICUT & DESIGN 3,406,679 04/01/2008 IC7 - Paper cutting machine for cutting paper,
cardstock and other paper materials in sheet form
CRICUT & DESIGN 3,372,457 01/22/2008 IC9 - Computer software recorded on cartridges
containing fonts, images or designs for use in operating
electronic cutting machines for cutting paper and other
materials in sheet form
CRICUT 3,326,119 10/30/2007 IC7 - Paper cutting machine for cutting paper,
cardstock and other materials in sheet form
IC9 - Electronic memories contained in a cartridge to
be inserted in an electronic paper cutting machine
CRICUT
DESIGNSTUDIO
3,579,471 02/24/2009 IC9 - Computer software recorded on CD Rom and in
downloadable format for use in operating electronic
cutting machines for cutting paper and other materials
in sheet form

80. The above registrations are in full force and effect and are un-cancelled. The
registrations are active on the Principal Register and constitute prima facie evidence of the
validity of the respective marks, Provo Craft’s ownership thereof and exclusive right to use the
CRICUT®, CRICUT & DESIGN® and CRICUT DESIGNSTUDIO® marks throughout the U.S.
81. Provo Craft has extensively and continuously sold, marketed, advertised and
promoted its e-cutter, cartridge, software and related goods using its CRICUT® marks, and the
same have become widely and favorably known throughout the U.S. Indeed, the CRICUT®
marks are famous, and are a most valuable asset of Provo Craft, symbolizing its goodwill among
consumers and the trade and are exclusively associated with Provo Craft.
14



82. Defendants have been using Provo Craft’s CRICUT® marks in commerce in
connection with identical and related goods and services.
83. Make the Cut uses the CRICUT® marks in advertising and promoting its website;
and in advertising, promoting and selling its MAKE-THE-CUT! software, all without permission
from Provo Craft.
84. Make the Cut also uses the CRICUT® marks within the MAKE-THE-CUT!
software, again without permission from Provo Craft.
85. Defendants’ unauthorized use of the CRICUT® marks is likely to cause confusion,
mistake, or deception as to the source or origin of Defendants’ goods and services, and are likely
to suggest falsely a sponsorship, connection, license, or association of Defendants’ goods and
services with Provo Craft, and thus constitute trademark infringement of Provo Craft’s federally
registered marks referred to in paragraph 71 above in violation of Section 32 of the Lanham Act,
15 U.S.C. § 1114.
86. The actions, conduct, and practices of Defendants described above have at all
times relevant to this action been willful and/or knowing.
87. As a direct and proximate result of the actions, conduct, and practices of
Defendants alleged above, Provo Craft has been damaged and will continue to be damaged.
COUNT VI – TRADEMARK INFRINGEMENT, FALSE DESIGNATION OF ORIGIN,
PASSING OFF AND UNFAIR COMPETITION UNDER § 43(a) OF THE LANHAM ACT

88. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
89. Defendants’ use of the CRICUT® marks is likely to cause confusion, mistake, or
deception as to the origin, sponsorship, or approval of Defendants’ goods and services and
commercial activities, and thus constitutes trademark infringement, false designation of origin,
15



passing off, and unfair competition with respect to the CRICUT® marks in violation of Section
43(a) of the Lanham Act, 15 U.S.C. § 1125(a)(1).

90. Make the Cut’s heavily-used and principal tagline “Unleash the Power of your
Cricut!” also denigrates and tarnishes Provo Craft and its CRICUT® products by implying that
despite Provo Craft’s efforts such power remains “leashed” and that only the Make the Cut’s
product can unleash it.
91. The actions, conduct, and practices of Defendants described above have at all
times relevant to this action been willful and/or knowing.
92. As a direct and proximate result of the actions, conduct, and practices of
Defendants alleged above, Provo Craft has been damaged and will continue to be damaged.
COUNT VII - TRADEMARK DILUTION UNDER SECTION 43(C)
OF THE LANHAM ACT, 15 U.S.C. § 1125(C)


93. Provo Craft repeats and re-alleges herein each of the foregoing paragraphs.
94. Defendants’ use of the CRICUT® marks, occurring after the CRICUT® marks
became famous, have diluted and are likely to further dilute the distinctive quality of those marks
in violation of Section 43(c) of the Lanham Act, 15 U.S.C. § 1125(c).
95. The actions, conduct, and practices of Defendants described above have at all
times relevant to this action been willful and/or knowing.
96. As a direct and proximate result of the actions, conduct, and practices of
Defendants alleged above, Provo Craft has been damaged and will continue to be damaged.
RELIEF REQUESTED

Accordingly, Provo Craft prays that this Court enter a judgment in its favor and against
the Defendants as follows:

a) The Defendants have infringed Provo Craft’s CRICUT® marks;

16



b) The Defendants have engaged in false designation of origin, passing off, and
unfair competition;

c) The Defendants have engaged in dilution of Provo Craft’s CRICUT® marks;

d) The Defendants have infringed Provo Craft’s copyrights;

e) The Defendants have induced infringement and contributed to infringement of
Provo Craft’s copyrights;

f) The Defendants have engaged in illegal circumvention of copyright security
measures;

g) The Defendants have engaged in trafficking of means of illegal circumvention of
copyright security measures;

h) That therefore Defendants are preliminarily and permanently enjoined from
infringing Provo Craft’s trademark;

i) That therefore Defendants, and their employees, agents, officers, directors,
shareholders, member, subsidiaries, related companies, affiliates, distributors, dealers, and all
persons in active concert or participation with any of them, are preliminarily and permanently
enjoined from engaging in further false designation of origin, passing off, and unfair
competition;

j) That therefore Defendants, and their employees, agents, officers, directors,
shareholders, member, subsidiaries, related companies, affiliates, distributors, dealers, and all
persons in active concert or participation with any of them, are preliminarily and permanently
enjoined from infringing Provo Craft’s copyrights;

k) That therefore Defendants, and their employees, agents, officers, directors,
shareholders, member, subsidiaries, related companies, affiliates, distributors, dealers, and all

17



persons in active concert or participation with any of them, are preliminarily and permanently
enjoined from inducing infringement and contributing to the infringement of Provo Craft’s
copyrights;

l) That therefore Defendants are preliminarily and permanently enjoined from
circumventing Provo Craft’s copyright security measures;

m) That therefore Defendants are preliminarily and permanently enjoined from
trafficking in means for circumventing Provo Craft’s copyright security measures;

n) That therefore Defendants’ facilities and products for circumventing and
trafficking are impounded;

o) That therefore Defendants pay Provo Craft damages to compensate for the
injuries it caused, together with any applicable interest;

p) That therefore Defendants pay Provo Craft statutory damages as provided under
the Copyright Act;

q) That therefore Defendants pay Provo Craft’s costs, expenses and attorney fees as
provided under the Copyright Act and the Lanham Act;

r) That therefore Defendants pay compensatory damages suffered by Provo Craft as
a result of the foregoing acts of dilution, infringement, false designation of origin, passing off,
and unfair competition, trebled in accordance with 15 U.S.C. § 1117;

s) That therefore Defendants pay Provo Craft enhanced damages for willful and
intentional infringement; and

t) That therefore Defendants pay Provo Craft all other money to which Provo Craft
may be entitled by law and equity.

u) Other relief as the Court may deem appropriate.

18



JURY DEMAND

Plaintiff Provo Craft and Novelty, Inc. hereby demands a trial by jury on all issues so

triable.

Dated this 31st day of March, 2010.

s/ Anthony S. Baish

Anthony S. Baish
State Bar No. 1031577
Michael D. Huitink
State Bar No. 1034742
GODFREY & KAHN, S.C.
780 North Water Street
Milwaukee, WI 53202-3590
Phone: 414-273-3500
Fax: 414-273-5198
Email: tbaish@gklaw.com

mhuitink@gklaw.com

Attorneys for Plaintiff, Provo Craft & Novelty, Inc.

Of Counsel:
Andrew M. Grove (Admission Pending)
HONIGMAN MILLER SCHWARTZ AND COHN LLP
38500 Woodward Avenue, Suite 100
Bloomfield Hills, MI 48304-5048

(248) 566-8432
ayg@honigman.com
Brian D. Wassom (Admission Pending)
HONIGMAN MILLER SCHWARTZ AND COHN LLP
2290 First National Building
Detroit, MI 48226

(313) 465-7594
bdw@honigman.com
Direct Inquiries To:
Anthony S. Baish
414-287-9435

4821222_2

19

[Sweetness4713]

Also it was noted.. and I know for a fact because I saw some for myself that they were actually using files people had created here and taking them for their own...

[Deloris]

Thanks for posting the complaint.

It's not just PC we have to worry about. Disney's executive stated recently that they are going after copyright violations of their characters especially on sites like Google etc.

We need to be very careful what we post here so we don't get Todd in trouble. See #72 in the above complaint.

[Sweetness4713]

This has been an ongoing thing with Disney for years and years and years... Like I stated before.. I worked in a fabric store and we weren't allowed to sell even one licensed fabric of theirs.. now they are all over the place... I don't know why a big place like disney would worry about our piddly little files.. They make millions and millions of dollars just off tourists alone.. ...I know you aren't allowed to claim their work as your own or sell it as your own but we are allowed to have it... otherwise they wouldn't have a web page of their own on the net..