- 5 -
the paper products for sale to the retailers on the basis of the
sales representative’s orders.
Petitioner uses several independent printing companies to
print its products. Generally, petitioner sends an original
cartoon drawing to a printer, and the printer photographs the
drawing, performs the necessary color separations, and creates
“proofs” of a particular paper product in accordance with
specifications dictated by petitioner (e.g., the size of the card
to be printed, the color of ink, and the grade of the card stock
to be used in printing the card). The printer uses its own paper
and its own ink, and it holds title to and bears the risk of loss
of the supplies and printed goods until it ships the goods back
to petitioner for petitioner to accept or reject. If petitioner
rejects the goods, it informs the printer of changes which must
be made to meet petitioner’s specifications.
Printers do not print petitioner’s paper products absent an
order from it, and they are not allowed to sell petitioner’s
paper products or any of petitioner’s original cartoon characters
or reproductions thereof. Petitioner sends a purchase order to a
printer indicating the number of a particular paper product that
it wants printed, and the printer prints the approximate number
of products ordered. In the case of cards, the printer prepares
an invoice with artist’s adjustments noted and ships the printed
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011