Tales Of A Fourth Generation Textile Executive: What Do You Mean You Don’t Have A Contract?

June 4, 2018 /

As promised, I wanted to discuss some of the subjects that came up during quilt market.  The subject that I want to focus on today is that a lot of my fabric convertor competitors don’t use contracts when working with licensed designers.  Where do I even begin?

First things first, let me say how bad an idea I think this is.  Yeah, maybe this has been going on for a long time and no issues have arisen between licensor and licensee.  The thing is that it is all good…until it isn’t and that is what contracts are for.  In law school we used to say, CYA or cover your ass….ets.  I imagine that the people at Cotton and Steel or at RJR are going to be wishing that they had a contract because it’s hard to imagine that the separation is going to go without a hitch.  I hope for their sake that it does go without a hitch, but some controversy is bound to arise especially the way the relationship suddenly dissolved.  I am just taking an educated guess and know nothing of a lawsuit at this time.

We at the Jaftex Companies do not work with a single licensor without a contract in place because we like to create some predictability when we can.  Knock on wood, in all my time working at the company, I have not encountered any legal issues.  That being said, if a legal issue arose, I am pretty certain that the contracts that we have in place would in fact delineate what would happen under various scenarios and the situation would be resolved pretty expeditiously.

The thought of having to go through litigation over a contract is a nightmare to say the least.  To begin with, like most other legal actions, they can last very long, they are very stressful, they are a brain drain, they are costly, they are all negative energy and they can especially hurt the designer if they are precluded from continuing to do work until the situation is resolved.  Alternatively, it could hurt the company licensing the designs too as they might have to cease selling fabric that they have in stock from said designer if there is a restraining order enforced against them.  In the end, it is the lawyers who make out the best when these contract disputes go to trial or just drag on before being settled.

Like anything else in the real world, the big corporation with lots of money has a huge advantage and the little licensor is at a big disadvantage.  If I were a licensed designer, I would insist on having a contract in place or work with a company that would put a contract in place.  This is just not a smart business move and the cost to have a contract written will certainly outweigh the risk of having a contract dispute without a contract in effect.  The thing I can’t wrap my brain around is why wouldn’t the licensee want to have a contract in place?  It’s so easy to create a simple template licensing agreement and make the little tweaks to it that are necessary.

With that, my parting words are that all licensed designers should insist on having a contract in place or find someone who will put a contract in place.  If you insist on a contract and the company won’t comply, they are not showing you the respect that you deserve and that same lack of respect will show when you end up in a legal battle.

P.S……Here is where you can find my Executive Facebook page.

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16 Comments

  • Eileen Keane

    June 14, 2018 at 2:04 pm

    Scott, it amazes me how many people in lots of different industries don’t use contracts! I’d rather have the safety net.

  • Lynn Rinehart

    June 6, 2018 at 4:04 pm

    Bravo, as a new comer to the industry it would only make us feel that all were protected when working together. We want for everyone to be successful and a contract only helps to insure that everyone is working from the same page and towards the same goals. Thank you for talking about it.

  • stephanie Woodward

    June 5, 2018 at 10:47 pm

    I have and Ever Sewn, and love it. It goes to class with me. I really commend you for thinking of others and giving them away. They are amazing machines. Thanks for all you do.

  • Sue Bleiweiss

    June 5, 2018 at 7:19 pm

    It’s baffling to me why any designer would work with a company without a contract and are willing to settle for a handshake agreement when they turn over their designs. I’ve written books, articles, taught classes, been a BERNINA ambassador etc and in each situation had a signed contract. It makes no sense to work without one on the part of all parties involved.

  • Joanne Hubbard

    June 4, 2018 at 10:51 pm

    While I tend to be a trusting person and often do things using the “handshake method,” the idea of no contract for this type of business would scare the heck out of me. Instead of a sign of mistrust, I think it’s a sign of honesty and respect to have a contract, especially one that is clearly written and specifically states what is expected from both parties. By taking the guesswork out of the equation, more time and energy can be spent on creating and producing wonderful new products.

    • Scott Fortunoff

      June 6, 2018 at 11:02 am

      Hi Joanne,
      Yes, take out the guesswork. That is the point of contracts.
      Have fun with your sisters. Talk soon.
      Scott

    • Gail Kessler

      June 5, 2018 at 8:15 pm

      Many new designers simply do not know better. And if they even have a contract, they do not understand the terms. As a company, when your design source is not treated as equally as the other components of your business, what does it have to gain?

    • Scott Fortunoff

      June 6, 2018 at 11:03 am

      Hi Gail,
      That is what lawyers are for as much as we like to avoid them. The investment will be well worth it in the end. Hope you are well. Enjoying all your fb posts.
      See you soon.
      Scott

  • Shelley Gardner

    June 4, 2018 at 7:04 pm

    I think contracts protect both parties involved. It’s just good practice to get down on paper what you expect from each other, rather than assume. (ass out of u and me)

    My daughter is just getting into sewing, if you want to put her name (Meagan) in the hat for the sewing machine, she’s be thrilled to get one. She’s getting into cosplay and making her own dragon outfit.