Sale of Finished Items

Hello everyone!

I keep reading in patterns that selling items made from the pattern is not permitted. That doesn’t make sense to me.

The goal at crazy patterns should really be to sell as many patterns as possible. Since I love crocheting passionately, but my own need will surely be covered at some point after the umpteenth bag, I wonder why I should buy any more patterns if I’m not allowed to offer the finished items for sale!?! I find giving them away difficult, since tastes are known to differ and not everyone appreciates the work anyway.

It may be that no one can or will check this anyway, but that doesn’t make this note any more logical.

Maybe someone can help me understand the point (I’m not planning to open a shop) or explain whether this note is even permissible. If I make something from a paid pattern using my own yarn, I should be free to do what I want with it.

What do you think about this?

Best regards,
giselinde

Dear Giselinde,

I completely understand your concern—I’d probably feel the same way.

Generally speaking, we authors put a great deal of energy and work into our patterns. If an author doesn’t want the finished pieces to be sold later, that wish should be respected.

I’ve read that some authors allow finished pieces to be sold with the note “made using the pattern by xy,” while other authors place no restrictions on the sale of finished products. I’m sure you’ll find some great patterns among them that you can use to make items and then sell them.

Best regards and good luck! Sonja 

To be honest, I don’t know to what extent this notice is legally relevant...
I’ve seen sources (which I consider reputable) that say you’re allowed to prohibit sales, and others that say you can’t.
  Probably only a lawyer who specializes in this area can answer that for you.

I personally allow the sale of items made using my patterns... but I do ask to be credited as the author. (I don’t even want to make that a requirement, though—how would you enforce it? Especially at a market, for example. I’d never expect someone there to include a credit...)

That said, I also understand why some people don’t want that.
Sure, there are advantages if it leads to more patterns being sold... But some people (especially those who already sell a lot) simply don’t want others to, so to speak, bask in their glory and make money from it.
  After all, you’re only allowed to sell products from brand manufacturers and license holders if you have a license to do so... (and those are usually very expensive). Either way... As I said, I can’t and shouldn’t give any legal advice on that... But I’d rather follow this notice if an author requests it. :) 

Personally, I allow the sale of items made using my patterns, but I don’t want this to happen on a large scale. I don’t want my products to become “mass-produced goods.” That’s why I specify that I allow sales “in small quantities.” However, I admit that ultimately I can’t control this. So it remains a request that I hope buyers will honor.

Dear Giselinde,
I personally allow the sale of small quantities of up to about five pieces – and these items must have been made by the buyer of my pattern or by someone from their immediate circle, meaning family and friends. Not in China and not through commercial home-based work by contractors, either. I reserve the right to any commercial production of my items by contractors in every case. Whether I ever do that or not is my business.

Anyone who wants to commercially produce and sell my items, either with the help of contracted home-based work and/or in large quantities, has to get in touch with me. We can then negotiate a licensing agreement if applicable. Of course I would have nothing against it if, for example, Steiff wanted to launch a knitting line and wanted patterns from me for it. But then there has to be negotiation, because of course I want to be included financially.

That is completely normal: whoever invents something should, in the end, also share in the commercial success of the finished product. I actually don’t know of any industry where that isn’t the case.
For example, if I buy a photo, I acquire a precisely defined license with it. I may use it in advertising brochures, for example, or in ads. If I want more, for example to print it on postcards and then sell them, I have to buy a much more expensive license from the photographer. That is clearly regulated, and rightly so. This is what is known as the value chain, from which the actual creators, meaning those who are right at the very beginning of the chain, should still earn money. In fact, hardly anyone can live on ideas alone.
Licenses, meaning usage rights, can be granted in many different forms: with a limited or unlimited number of pieces, for a fixed term or indefinitely, exclusively or non-exclusively.

Here’s a sample calculation:
You want to use one or even several of my patterns to make 20 pieces yourself and sell them at artisan markets. Off the top of my head, I would say I’d charge you 50 cents per piece, which makes 10 euros plus VAT for a 20-piece license. You’d best add the 50 cents to the selling price. If it becomes a hit, you simply buy a few more licenses.

But now a large manufacturer comes along who would like to have many thousands of pieces made in China. Since they don’t know whether they might make even more if it becomes a bestseller, they want a license that is unlimited both in time and quantity, and it should also be exclusive. Exclusive and unlimited means to me: I may never sell this pattern myself again, so it is “burned” for me forever. Of course I would have to be paid for that; I would definitely aim for a four-figure sum – but that would certainly depend on my negotiating skills. (Unfortunately, something like that has not happened to me yet ;-))

But I would guess that hardly anyone here has anything against the occasional handmade piece being sold at a wool market ...
With very warm regards,
Your Steffi / all of yours, Steffi

Thank you very much for your detailed responses. As I’ve already said, I have absolutely no intention of registering a business, let alone engaging in mass production. I can, of course, understand that this isn’t what the authors have in mind. My only concern is being allowed to sell individual pieces that I’d like to make, even though I don’t actually have any use for them myself. That should also be in the authors’ best interest, shouldn’t it? Otherwise, why would I purchase these patterns?

Best regards,
Giselinde

Dear Giselinde,
as you’ve just emphasized again, it won’t work that way. You’re planning to make items in advance with the intention of selling them. For that, you need a business license.
I’d advise you to contact the author before buying a pattern to clarify this.
Best regards, Petra

Dear ursulapetra,

you can’t say that in such absolute terms. In Austria, at least, there’s the concept of “home-based side business,” for which you don’t need a business license. Anyone who wants to pursue such an activity should definitely check with the Chamber of Commerce, the district administrative authority, and the relevant tax office beforehand to find out what’s required, since regulations often vary slightly from place to place.

I would also respect the author’s wishes and clarify in advance whether the items can be sold. 

I’m employed and am just toying with the idea of occasionally (I mean, really just every now and then) selling something I’ve made for the fun of crafting—for example, through eBay classifieds—to recoup my material costs. Is that already considered a business? That would totally kill my enthusiasm for crocheting. :/
Best regards, giselinde 

Hi Gerlinde,

as far as I know, you can offer private sales on eBay or eBay Classifieds. That would include, for example, your crocheted items.

There are several designers here who also allow sales, especially if they’re on a small scale like yours.

Don’t get discouraged—just ask the designers. It’s easy to arrange so that, for example, when you make a sale, you link to the designer’s CP shop or at least tell the buyer who the designer is.

It’s not nearly as complicated as it sounds. And everyone’s happy.

I have another idea if you’re looking for a good use for your crochet projects. How about taking them to children’s homes and giving them away? You could bring a lot of joy that way. It just depends on what you’re crocheting. I’ve met women here who knit socks for the homeless. That’s another option. But it’s just an idea of mine that I’m passing along to you.

Best wishes, Monika

Hi everyone,
Well, without claiming to be correct, I’d agree with Petra. To my knowledge, any sale of items explicitly made with the intent to sell is considered commercial (in Germany) and therefore requires (regardless of quantity) a business registration. 
Dear Giselinde, please just make sure to do your research thoroughly beforehand—my neighbor has had bad experiences with cease-and-desist letters and the like, even though she didn’t do anything “wrong” maliciously.

Best regards,
Sarah

...Although, as far as I know, eBay’s private sales section (Classifieds) isn’t meant for making items to sell privately...
As soon as you make something to sell it, you could run into trouble if the wrong people see it.
Yes, lots of people do it... But that doesn’t mean they’re allowed to. If someone reports it, they’ll have a problem.

The question is: Where’s the line between “occasional” and “commercial”? Under what circumstances is it okay, and under what circumstances isn’t it? In Germany, it’s pretty clear... As soon as you make something for sale.

That’s frustrating for a lot of people. I (and many others) felt the same way at first when I started selling patterns... As far as I know, I also started a thread here on the forum and wrote that I just wanted to do this “a little on the side”… I, too, looked for loopholes so I could sell a little bit as a private individual… But yeah. The search was unsuccessful. It just wasn’t possible.
So I registered a business.

My advice: Don’t let this spoil your enjoyment of your hobby. 
Maybe check with the tax office again or even a tax advisor to see if anyone knows of an acceptable solution for you.
And if you can’t find one, just find another use for your crafts—as Monika already mentioned. A children’s home, an organization that helps the homeless...
That’s what I do myself with the things I don’t need. And it always makes me happy :) 

Hello everyone,

from a purely legal standpoint, it’s not necessary to prohibit the sale of items made according to the patterns, because that’s already regulated by law.
On the contrary, a sale must be explicitly permitted.
If this permission is granted, a restriction to a specific number of items is legally void; a limitation regarding the internet, markets, or stores is permissible.
There’s also the option of granting sales licenses on a case-by-case basis. These can then be limited in terms of quantity or include a time limit, for example.

Best regards

I just read this too and followed it with interest.
I’ve already bought quite a few patterns here and crocheted them myself. I often show pictures of my finished projects to my coworkers. They’re always amazed at how cute they look and would like me to crochet one or two of these little dolls for them.

If I were to sell these dolls to a coworker—which would be a private transaction for me—would that be okay, or could it even be a criminal offense?

Dear craft enthusiast, as I said, it depends on where you live and exactly what you want to do.

Please check with the relevant authorities (in Austria, you can also get a lot of information from the Chamber of Commerce) and don’t rely on advice from the forum. All we can tell you here is how we did it, and that won’t help you if you end up getting a fine for running a business without a license. 

I just want to say this much: as far as I know, selling products for money must in any case be reported to the tax office (regardless of whether you make a lot or a little profit—you’re creating the products with the intention of making money) and usually to the trade office as well. By the way, you can usually just call them or send an email, describe what you want to do, and ask whether you need a permit for it. I wish you every success if you decide to sell your dolls 👍

Thank you, dear Monika, for the great idea of donating to a charitable cause. I’m not sure, though, whether there’s anything suitable for the items I prefer to make. But I immediately thought of an organization that has its roots in my school days. Back then, we sold handmade jewelry, batik, and macramé pieces at the Christmas market. The proceeds supported the education of young girls in Ethiopia. Even today, the organization still mostly sells homemade jam and similar things at Christmas markets … which, unfortunately, is still a sale …
At least the tax office wouldn’t have any objection if I donated my pieces to the organization … and I could ask the authors … though really, the recipient can do whatever they want with it, right?

I strongly disagree with the statement that as soon as you sell something, you’ve made products with the intention of making money. I, at least, never had—and still don’t have—that intention. You can sell without making a profit—for example, at cost!

First of all, thanks for the information.
Like giselinde, I don’t plan on making money from this either. Most of the time, I give the items away because it brings me joy to make others happy.
As I said, you can also just ask to be reimbursed for the cost of materials.
I’ve also had someone give me the materials/yarn, and I crocheted the project they wanted from it—that’s allowed, right?

I’m not the type to try to profit from this anyway. It should all just be for the fun of it, and I’m happy to pay for well-thought-out patterns and hold them in high regard.

Dear Giselinde, dear craft enthusiasts,
I can certainly understand that you’d like to recoup your material costs.
But I don’t understand why selling is equated with getting rich. What’s so bad about selling the work of your own hands at a price that’s reasonable and not a pittance? You’re not getting rich—after all, you’ve already put in the work!

Let’s be honest: If you sell at cost, that’s really only great for the customers. You yourselves have invested many hours, for which you end up getting practically nothing in return.
Aren’t we “teaching” our customers the wrong lesson this way? Time and again, I’m horrified to see that many people aren’t willing to spend as much—or more—on handmade items as they do on mass-produced goods (which usually come from China). Wouldn’t it be much better if you sold an animal figurine, a scarf, or a sweater here and there that earned you at least 3 or 4 euros per hour? Sure, you’ll find fewer buyers that way, but at least they’ll appreciate your work. (I don’t even want to bring up the minimum wage—enforcing it would probably be nothing short of a miracle, unfortunately.)

Personally, I really have a problem with handmade items being sold at rock-bottom prices. Look at it this way: you’re competing with designers who may actually have to make a living from this—and who need to sell their work at a fair price.

Bottom line: I can only encourage you to sell fewer pieces, but at a fair price. If necessary, get in touch with the designers—they’ll surely have a good idea of what something like this should be worth.
Or you could donate to charity. That’s definitely a great idea.

Warmest regards,
Steffi

Dear all, but the point still stands: a sale is a sale, regardless of whether a large or small profit is made or intended. And trade registration is about the intention to sell behind the production - so if, during production, I already know that I’ll be taking money for it afterwards (to the best of my knowledge).

Dear Steffi,

My reward is the joy I get from crocheting and the recognition I feel when my work is admired. I just don’t want the pieces I’ve made with love to gather dust in a corner. And when giving gifts, it’s easy to end up not quite matching the recipient’s taste. That’s why I came up with the idea of selling them. I’m sorry if this would undercut the prices for other sellers who also factor in their labor costs. However, if I have to register a business just for a few individual pieces, the idea is off the table for me anyway.

Best regards,
Giselinde

Hi everyone,
but I don’t think it’s fair if the sales ban isn’t mentioned in the description and then suddenly appears in the purchased pattern. If that were the case, I definitely wouldn’t have bought it...

Conni

Dear Conni,

as I already explained once back in 2019—and yes, this has been discussed in detail with a lawyer (“conveniently,” I’m married to one 🙃)—the author must explicitly consent to the sale. The prohibition is already provided for by law.
If permission is granted, there’s no limit on the number of items, though the permission may be time-limited.
Therefore, it’s not unfair if an author doesn’t include it in the description but then explicitly states the prohibition again in the pattern itself, even though this wouldn’t actually be necessary.

If you only want to buy patterns that are authorized for commercial production, just send a quick private message or email to the creator/author before purchasing to check.

Best regards