Bernina vs. Riddick/Imageline - 080510d

Case 1:10-cv-04917 Document 8-1 Filed 08/05/10 Page 1 of 143
IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
BERNINA OF AMERICA, INC., )

)
Plaintiff, ) Case Number: 1:10-cv-4917
)
v. )
) Judge Milton I. Shadur
IMAGELINE, INC., ISLANDVIEW )
TECHNOLOGIES LLC, ISLANDVIEW )
DESIGNS LLC, and GEORGE ) Magistrate Judge Martin C. Ashman
P. RIDDICK, III, )
)
Defendants. )
INDEX OF EXHIBITS
12/29/08 Email From G. Riddick to J. Woods........................................................................ Ex. A
1/5/09 Email from G. Riddick to P. Newton .......................................................................... Ex. B
1/2/09 Letter from B. Fergemann to G. Riddick ..................................................................... Ex. C
2/13/09 Email from G. Riddick to B. Fergemann ................................................................... Ex. D
6/3/10 Email from G. Riddick to M. Favre .............................................................................. Ex. E
6/28/10 Letter from B. Fergemann to G. Riddick.................................................................... Ex. F
6/17/10 Email from G. Riddick to L. Stevens ........................................................................ Ex. G
6/17/10 Email from G. Riddick to All Bernina Dealers ......................................................... Ex. H
6/25/10 Email from G. Riddick to All Bernina Dealers ........................................................... Ex. I
6/25/10 Email Chain from Imageline to All Bernina Dealers ..................................................Ex. J
6/30/10 Letter from G. Riddick to All Bernina Dealers ......................................................... Ex. K
7/9/10 Email from G. Riddick to L. Stevens ........................................................................... Ex. L
7/2/10 Email from C. Racine to Bernina ................................................................................Ex. M
7/14/10 Letter from G. Riddick to B. Fergemann ................................................................... Ex. N

Registration Extract from the United States Copyright Office Database ............................... Ex. O
5/31/96 Letter from the U.S. Copyright Office to Imageline .................................................. Ex. P
Declaration of Kevin P. McCormick ...................................................................................... Ex. Q
Declaration of Marc H. Trachtenberg ..................................................................................... Ex. R

Exhibit
A
From: George Riddick [mailto:griddick@imageline2.com]

Sent: Monday, December 29, 2008 3:32 PM
To: 'Jackie Woods'
Cc: 'ggray528@yahoo.com'
Subject: RE: URGENT - Copyright Infringement Notifications
Jackie,
Here are handful of the Imageline images we have discovered thus far. The listing is by no means
complete. Every time our investigators take a deeper look, they find more. I have never seen anything
quite like this before. And I have been doing this longer than anyone I know ... by far!
While I intend to be as professional and cooperative as humanly possible, I also do intend for Imageline
to be paid for the damages we have sustained thus far, which as I am sure you know are quite substantial
whether the calculation is based on actual damages, statutory damages, Section 1202 damages, or
otherwise.
FYI, the formula we have successfully developed and enhanced over the years is as follows.
1. End user infringement – unknowing. Three times our normal end user licensing fees, which average
roughly $25 per image download. Our industry (digital photograph and designs) averages 3-10 times
“retail” price as its settlement yardstick. Many courts have also gone along with the rationale behind this
calculation.
2. Retail store level infringement. $750.00 per design.
3. Distributor or Internet download supplier. - $7,500.00 per design (this would relate to 100 end users,
which is VERY low based on the research we have conducted and data we have accumulated over the
past 2 and ½ years of intense studies and investigations.
4. If someone claims our proprietary designs are in the “Public Domain” or are owned by someone other
than Imageline, and a settlement cannot be reached, we go for the maximum amount allowable under
law, which is unlimited for actual damages, up to $150,000 per independent work for statutory damages
and up to $25,000 per image altered for Section 1202 violations.
Since all of our images are registered with the U.S, Copyright Office, we generally are also awarded all
legal fees, expenses, and court costs as well.
It pays to settle these disputes, as you well know. Fortunately for Imageline, we are now working with four
brand new (to us, not to the graphics industry) contingency law firms. We will be filing six different
lawsuits against folks who chose not to settle in January and February. The attorneys are chomping at
the bit to get involved in these embroidery industry issues. Thus far, I have told them I was going to try to
handle them myself. We have to pay these lawyers anywhere form 35-50%, you know. Contingency firms
are the only way to go in cases like this, however, in my humble opinion. We have paid out millions and
millions of dollars of hourly legal fees throughout the years. We know.
The problem with all of this, as you know, is that the toothpaste can never be put back into the tube
regardless of what we do going forward. The damage to Imageline is the same in the marketplace
regardless of how innocent or intentional an incident of copyright infringement may have been from the
get-go.
As you can see, I think the best way to get handle this infringement epidemic is through an industry-wide
high level emergency meeting. I have called for such a meeting in Dallas for mid-January. That should be
convenient for your and other executives from Great Notions, OESD and Bernina.
Can you be of any help pulling this together before the middle of January? We will bring several key
people with us to Dallas if that would help.
George
Exhibit
B

Sent: Monday, January 05, 2009 10:26 AM
To: phil@oesd.com
Cc: Fergemann, Brian D.; 'Jackie Woods'; ggray528@yahoo.com; gpaine3@yahoo.com
Subject: URGENT - Please respond today - Ongoing copyright infringement activity
PERSONAL AND CONFIDENTIAL
Dear Mr. Newton,
As you can see from the attached e-mail sent out by Imageline over the
weekend, we were surprised in Bernina's decision to turn this matter
completely over to outside counsel while the ongoing infringement activity
involving your company, your suppliers, your distributors and re-sellers,
and most important, your customers, was/is still accelerating at such a
rapid pace.
Our researchers and investigators have now discovered well over 120
independent infringements (double what we had found in our last
correspondence and still only halfway through our detailed "finger-printing"
process) involving copyright-registered works belonging exclusively to
Imageline, Inc. entrenched in every aspect of your distribution channels,
worldwide. We have already invested hundreds and hundreds of man-hours in
this process.
There is no way on earth that this degree of obvious infringement activity

could be interpreted as anything other than flagrant and willful. What has
happened to the quality control standards of your organization?
Imageline is not some artist working out of their garage. Your people and
executives either knew, or certainly should have known, that your design,
duplication, and production activities were infringing. Imageline invented
the entire category of electronic graphic arts content (digital
illustrations, designs, and animations) for the PC marketplace all the way
back to the mid-1980s and have been an industry leader ever since.
We would be happy to keep Mr. Fergemann in the loop, but will not
communicate with him only. In fact, we want to include the CEOs of both
Bernina USA and Bernina International (after all, this is a major global
problem, as I am sure you know by now) in all further communications as
well. Please forward us the correct contact information for the Bernina
senior executives today. Thank you.
At one time, it appears that your organization led the fight against digital
piracy in the embroidery industry. When did that course of action change,
Mr. Newton? It appears that perhaps you changed directions after the Bernina
acquisitions a few years back. That frightens me.
Imageline, as a company, and I, personally, have fought Internet and CD/DVD

based piracy for the past 18 years consistently. We have made a huge
difference in the markets and industries we have focused on. BUT our real
work has just begun. Your industry is totally out of control in this regard
and NO ONE, regardless of how smart or hard-working they are, can compete
against their own goods and services that are practically given away for
free in the market ... and especially in an Internet-connected global
market. As a matter of fact, I think I read a quote where you essentially
said this exact same thing to the press a few years back. Am I right?
You should know this, Mr. Newton. I am very disappointed that Jackie Woods
and you chose to take a legal course on the resolution of this massive
Bernina problem rather than meet with me and other copyright and embroidery
industry senior executives and officials as I requested several weeks ago
once we realized the enormity of this problem.
My invitation is still open for you and your senior Bernina representatives
to fly into Richmond (or Dallas) and take a look at what we have uncovered
in the past two months. You will be blown away. The infringing material and
documentation we have accumulated thus far is now stacked almost eight (8)
inches high. Involving the outside lawyers in a discovery-like process will
only allow the market infringement activity to increase exponentially. We
are not wiling to participate in this kind of willful activity. We care too
much about innocent end users to support that kind of plan.
In fact, we are always firm in this conviction. We will not willingly

support ANY plan that is likely to increase copyright infringement in the
marketplace.
Please get back with me today and let me know your decision, from the top of
the Bernina organization, as to whether you are interested in trying to
resolve this mess in a peaceful manner ASAP or are intent on turning it over
to outside litigation counsel and proceeding from there. We have certain
major copyright industry events talking place in the next few months and
really do not want to play games with you or anyone else in your
organization at this critical time.
We take this kind of thing very seriously, Mr. Newton. We are not yet
convinced that you, Ms. Woods, and your other business executives still do.
Please advise.
George P. Riddick, III

Chairman/CEO
Imageline, Inc.
P.O. Box 6275
Ashland, Virginia 23005
(804) 525-6941 - voice

(804) 525-6943 - fax
Exhibit
C
Exhibit
D

Sent: Friday, February 13, 2009 11:56 AM
To: Fergemann, Brian D.
Cc: 'Jackie Woods'; gpaine3@yahoo.com
Subject: Revised Bernina Proposal - immediate response required
CONFIDENTIAL – FOR THE PURPOSE OF SETTLEMENT DISCUSSIONS UNDER F.R.E. 408 ONLY
Dear Mr. Fergemann:
We have just concluded a detailed review of our embroidery industry cases with our Executive
Committee. We have amicably resolved six (6) infringement disputes over the past few weeks and have
quite a few still outstanding. Needless to say, one of the largest of those still outstanding and unresolved,
and continuing to infringe I might add, is with your clients, Bernina, Great Notions, and OESD.
I have been instructed to contact you today and make your clients a revised settlement proposal, more in
line with the terms and conditions of the other agreements we have reached in recent weeks. I must add
that I disagreed with that decision, but am going along with the majority as advised.
As you know, we made Mr. Perich a very well-reasoned settlement offer to resolve all disputes and
release all of your clients, their officers and directors, as well as their business partners and end user
customers, for $15,000.00 per independent infringing design/product found to be unlawfully included in
the distribution channels of your various clients. When these cases are taken to court we have instructed
our attorneys to file for between $15,000.00 and $150,000.000 for each infringement, as well as seek full
recovery of all attorneys fees and costs, and applicable DMCA Section 1202 penalties, to full extent of the
law, ,which in this case would be $25,000.00 per altered and falsely represented design.
Did you even advise your clients regarding Section 1202 claims, Mr.Fergemann? You never once
mentioned anything about them in your numerous letters and e-mail responses to me. Several of our IP
attorneys are quickly gaining national recognition for their expertise in this very important area of the law.
Your clients should know these rules and laws like the back of their hands, just like we now do here at
Imageline.
Nee Proposal. $7,500.00 per design, payable as follows:
A. Four equal quarterly cash payments beginning on the date of settlement and release and
concluding one calendar year from that date; or,
B. 1/3 cash payment on the settlement date, and 2/3 of the total settlement compensation paid over
time, or in the exchange of design products, software, and/or equipment, as well as possible
ongoing contracted digitizing services as required (applied as a credit towards the outstanding
balance until paid in full).
As you no doubt can tell, we intend to enter this embroidery design market with a significant presence as
early as possible this year. The above offers are made, and conditioned upon, your clients and Imageline
having a cooperative business relationship moving forward, with the joint objective of protecting our end
user customers and reducing digital piracy in the embroidery markets around the world.
Please track down the Bernina executives and get back to me by the end of the business day today if at
all possible. As I am sure you know by now, time is of the essence in the resolution of this extremely
serious matter.
Thank you.
George

Chairman/CEO
Imageline, Inc.
Exhibit
E

Sent: Thursday, June 03, 2010 9:27 AM
To: 'mfavre'
Cc: 'George Riddick'
Subject: Business opportunity
Good morning, Martin
Do you plan to directly respond to the last two e-mails I sent you or
not?
It makes no sense to those of us here at Imageline and Islandview

Designs to
send stacks and stacks of materials to an outside litigator who
obviously
does not have a clue what we are talking about. Besides, this same
outside
counsel assured us in writing that all of this was taken care of
eighteen
(18) months ago . and we have already found over fifty (50+) previously
identified infringing Imageline illustrations and designs still being
actively displayed, distributed, and bundled by Bernina and its
worldwide
distribution channels and partners.
To refresh your mine as to the severity of our claims (*all of which we

were
willing to resolve with a business arrangement had you not abruptly
cancelled our meeting in Chicago last month), we have documented
evidence
that:
1. At least fifty (50) of our individually copyright-registered

designs are still being actively displayed and distributed by you in
mass,
and these illustrations were all presented to you in January 2009, when
we
were assured by both Mr. Fergemann and Mr. Perich that they were removed
from ALL channels of distribution. This willful infringement activity
subjects your company to statutory damage claims of at least
$7,500,000.00
under United States copyright law. Willful infringement can also have
criminal implications in cases such as this.
2. Roughly one hundred and fifty (150) additional infringing

Imageline
images have been identified, as well. Often these designs have a piece
of
tape over or beside them in your store locations and/or online, but you
have
never been granted rights to display them in any manner, whatsoever, and
the
fact that you did not entirely remove them from your independent dealer
network is unconscionable. Even leaving willfulness out of the equation
for
a moment, these additional discoveries result in additional statutory
damage
claims of up to $2,250,000.00 under firmly established U.S. Law.
3. Each Imageline proprietary image we have found to be infringing

through the Bernina worldwide networks has been altered and modified so
as
to remove the Copyright Management Information (CMI) Imageline embeds
within
each of our original copyright-registered designs, and replaced with
identifying materials that falsely claim Bernina, or one of your wholly
owned subsidiaries, owns the copyrights to the imageline images. This is
in
clear violation of Section 1202 of the DMCA and subjects Bernina to
other
statutory claims (over and above the infringement claims referenced
above)
of an additional $5,000,000.00.
4. Each of the Bernina-related or affiliated retail dealers and

online
distributors continues to display and distribute Imageline proprietary
images (and pay royalties back to you at Bernina) as well. These

independent
infringement claims (even assuming they were not willful) would result
in
claims of roughly $150,000.00 against each independent retail outlet for
an
additional potential liability of roughly $135,000.000.00 worldwide.
5. Since all Imageline clipart illustrations and designs are

independently registered with the U.S. Copyright Office, we would also
be
entitled to recover all legal fees and other costs associated with the
above
referenced claims.
As I am sure you know by now, Imageline filed federal lawsuits against

eighteen (18) similar companies over the past eighteen (18) months. We
have
NEVER filed a false claim and we have NEVER lost a copyright
infringement
case in the past twenty years. We are also very active in the Obama
Adminstration's new aggressive anti-piracy efforts in Washington.
We only file legitimate claims. But once a claim is filed, and we are
convinced the infringers would rather fight than settle, we do not
offer
the same settlement/business resolution possibilities as we routinely
try to
offer if a company is willing to work with us in good faith and in an
honest
and forthright manner from the offset. We have not found this to be the
case
with Bernina and particularly not when Mr. Fergemann is involved. In our
view, litigators have a built in conflict of interest in situations such
as
this, as their law firm makes tens times the amount of money (at least)
when
they can encourage their clients to try to defend an obviously weak case
in
court.
Martin, we had such a fair and reasonable business-related resolution

ready
to present to you "live" in Chicago. There was far more risk to me and
Imageline than to you and Bernina to attend that meeting and review the
full
disclosure of all of the facts. Why you abruptly cancelled the meeting,
and
then refused to communicate with me at all, is not clear to any of us
(or I
am sure to your dealer network, as well) at all. Please explain.
I look forward to hearing from you directly before the end of the week
before we decide what next move is in the best interest of our customers
and
dealers.
Sincerely,
George
Chairman/CEO
Imageline, Inc.
Boca Raton, Florida

Exhibit
F
Exhibit
G
From: George Riddick

To: 'Lisa'
Cc: ggray528@yahoo.com ; gpaine3@yahoo.com ; dnoble2006@comcast.net ;
copyrights@imageline2.com
Sent: Thursday, June 17, 2010 11:35 AM
Subject: TIME HAS RUN OUT ON THIS END
ISLANDVIEW TECHNOLOGIES MAY BE FORCED TO CHANGE ITS COURSE IN

THE EMBROIDERY DESIGN WORLD. OVER 220 INFRINGING
PRODUCTS/DESIGNS OWNED EXCLUSIVELY BY IMAGELINE, INC. HAVE BEEN
DISCOVERED ALREADY WITHIN THE BERNINA WORLDWIDE COPYRIGHT
INFRINGEMENT NETWORK.
Hi Lisa,
I hope your procedure was successful yesterday and that you are feeling better today. Your
health is far more important than all of this business ‘nonsense’.
We have not heard a single word back from Martin Favre or anyone else from Bernina. Our
executive board is steaming mad and has directed me to proceed in a manner that will not be fun
for ANY of us. In short, we have been told to file a federal lawsuit against BerninaUSA and each
of the 600 or so Bernina dealers where the current infringing activities are still taking place. We
will also be filing suit against Bernina International and all 300 or so international Bernina
dealers. We intend to get several copyright enforcement agencies in Washington D.C. involved
in this later mission, as well.
I hope you realize how hard I have worked, personally, to avoid this outcome and how
completely unprofessional and unethical the executives of Bernina have handled this complex
situation. I have worked for hours and hours over the past two months trying to convince people
on this end that we would be better off in a business partnership with Bernina, rather than a
nuclear war.
Martin knows that we have refused to talk to either Mike Perich (your CFO at BerninaUSA) or
Brian Fergemann (your outside litigation counsel in Chicago), since both of these gentlemen lied
to us about how these infringement issues were dealt with throughout the Bernina distribution
network (retail stores, OEM bundles, and online) last year. All of this year’s continuing
infringements will likely be deemed “willful” under current U.S. copyright laws and have both
severe civil and criminal potential repercussions to the infringers, based on what information is
confirmed during discovery.
As you know, we are currently training six (6) people up in Ashland, Virginia on your new
Bernina 830 embroidery machines and the new Bernina Designer Plus Embroidery 6/Corel Draw
Essentials software package. We plan to do a similar training program down here in Hollywood,
Florida this fall.
Lisa, I suspect other Bernina dealers will reach out to you after they become aware of this
controversy and get directly involved. I know we can count of you to be 100% truthful with
them. I sincerely hope that if you are contacted by other Bernina dealers, you will be honest with
them, as you have always been with me, and let them know that Bernina headquarters (senior
executives in both Chicago and Switzerland) soundly rejected our business resolution to this
serious dispute and essentially forced us into filing lawsuits against everyone who is involved in
the unlawful Bernina-driven distribution scheme from the top down, including Bernina end user
customers.
You would have to agree with me at this point that Bernina is “baiting” us into this war. Why?
No one other than Martin apparently knows. We NEVER lose a war pertaining to the protection
of artists’ rights and the theft of our property, particularly at this magnitude. Unfortunately,
hundreds, if not thousands, of individuals and companies in the middle of these worldwide
Bernina distribution channels will likely end up taking the brunt of the damage.
You know how much I like you, Lisa, but you are just “plain wrong” in your assessment of
Martin here. His has had ample time to “do the right thing for his dealers and customers”. He has
chosen not to. He would not have the title of President of BerninaUSA if he didn’t have the
authority to try and avoid this kind of needless war. Because of his failure to respond (or even to
deliver a polite “no thank you”) to my numerous requests to meet and talk, our board voted
unanimously last night to head in an entirely different direction.
You (along with ALL other Bernina dealers worldwide) will be receiving an official notice from
Imageline very soon. Please call me directly (804-929-4044) if you have any questions. I am not
giving out this mobile number to the other Bernina dealers at this point in time. I do plan to visit
the Richmond Bernina store later today or tomorrow to inform them as to what is getting ready
to happen. I believe they deserve that kind of professional courtesy.
Thanks again for your efforts, Lisa. I do care a great deal for you and your health, and I wish I
did not have to deliver this kind of depressing news to you while you are re-covering.
George
P.S. It has not helped matters at all that Martin has apparently been “too busy handling important
matters with directors” and has not even followed up with you as he promised. In our view, he is
not sincerely interested in resolving this dispute out of litigation, Lisa. We see this kind of thing
each and every day in the digital piracy world. We rank the Bernina network as one of the most
notorious and widespread digital piracy networks we have uncovered in the past twenty-five (25)
years of doing this kind of investigative work to protect the valuable copyrights of the creative
communities in this country. Often foreign-based companies, such as Bernina, present us with
the strongest challenges.

Chairman/CEO
Islandview Technologies
and
Imageline,Inc.
2012 Hollywood Boulevard

Hollywood, Florida 33020
(804) 368-8571 – voice

(804) 368-8572 - fax
Exhibit
H
From: George Riddick

To: maryleesfabric@embarqmail.com
Sent: Thursday, June 17, 2010 12:43 PM
Subject: Bernina dealers - Pennsylvania
URGENT – COPYRIGHT INFRINGEMENT NOTIFICATION
THIS E-MAIL NOTIFICATION IS BEING SENT TO YOU ON BEHALF OF

IMAGELINE, INC. OF HOLLYWOOD, FLORIDA BY ISLANDVIEW
TECHNOLOGIES, SISTER COMPANY OF IMAGELINE, INC., AND OWNER OF
ISLANDVIEW DESIGNS, LLC THE COMPANY NOW PRODUCING THE LARGEST
LIBRARY OF PREMIUM EMBROIDERY DESIGNS IN THE WORLD
Dear Bernina dealer:
Within the next few days, you will receive a certified notice from Imageline, Inc. of Hollywood,
Florida pertaining to serious and ongoing copyright infringement activity taking place in printed
embroidery design catalogs, software CD/USB products, and online embroidery design systems
(including your Embroidery Take-Out service) at your Bernina store location.
Based on the fact that your suppliers, Bernina International, BerninaUSA, and Dakota
Collectibles, were given written notice of these infringements early last year and assured
Imageline that all infringing activities at Bernina authorized dealers had been curtailed
immediately, your ongoing and continuing copyright infringement activities will now likely be
deemed as “willful”, and subject you to the maximum statutory damage penalties of up to
$150,000.00 per independent infringement, as well as all legal costs and other DMCA Section
1202 penalties that will be further explained to you in the certified package being delivered to
your store location.
Over two hundred (>200) infringing Imageline designs have been identified thus far, making this
case one of the most flagrant, damaging, and widespread digital piracy discoveries in our twenty-
five year history as the long time leader in the electronic graphic arts content (clipart
illustrations, designs, templates, and animations) industry.
As of today, you are being advised to cease and desist from any further infringing activities,
identify and notify all customers you have provided with stolen designs belonging exclusively to
Imageline, Inc., and preserve all records (print and electronic) for the pending copyright
infringement lawsuits we are preparing to file.
Be assured, we have tried for quite some time to get the senior business executives at Bernina
and Dakota Collectibles to take these digital piracy claims seriously and perhaps allow their
dealers and end user customers to escape this now necessary action. In our view, we have been
completely ignored and lied to by these senior embroidery industry business executives.
Consequently, we have been left with little choice as to how we need to proceed to protect our
hard-earned property.
For your information, Imageline owns one of the largest archives of high quality vector-based
digital illustrations, designs, and logos in the world, and is the pioneer of the electronic clipart
industry, starting with our joint ventures with IBM, Microsoft, Adobe, WordPerfect, Corel,
Lotus, Borland, and Apple in the mid 1980s. We are actively involved with both Congress and
the U.S. Copyright Office in Washington, as well as several major copyright protection
associations (see attached SIIA Press Release), in the protection of intellectual property,
worldwide, and will do everything in our power to stop digital piracy from spreading even
further into the embroidery design markets.
Please contact me directly (or have your attorney do so) so that you can objectively evaluate your
options as we move forward on these massive, and willful, infringement claims. Several Bernina
dealers have already opted to take a firm stand against copyright infringement and intra-industry
hypocrisy, and cooperate with Imageline as we pursue these serious claims. I personally believe
they have been given excellent legal advice.
I hope you will cooperate with Imageline to protect your customers from the potential liabilities
they, too, now face based on ongoing infringement activities of this magnitude.
Sincerely,

Chairman/CEO
Islandview Technologies
and
Imageline, Inc.
2012 Hollywood Boulevard
(804) 368-8731 – voice

(804) 368-8721 – fax
(804) 929-4044 - mobile
Exhibit
I

Sent: Friday, June 25, 2010 5:09 PM
To: rschermerhorn@logoworks2.com
Subject: URGENT - Ten (10) clarifications from our previous e-mail message to you of June 17, 2009
WE FULLY REALIZE THAT MANY PEOPLE DO NOT BOTHER TO READ LONG E-

MAIL MESSAGES THESE DAYS, AND VIEW INFORMATION DELIVERED IN THIS
FASHION AS NATURALLY SUSPECT. WE STRONGLY ENCOUARGE YOU,
HOWEVER, TO MAKE AN EXCEPTION HERE, AS THE BELOW INFORMATION,
IN ITS ENTIRIETY, IS CRITICALLY IMPORTANT TO LIMITING THE ONGOING
POTENTIAL LIABILITIES YOU FACE, PERSONALLY, AS WELL AS THROUGH
YOUR EMBROIDERY STORE OPERATIONS, FOR ONGOING COPYRIGHT
INFRINGEMENT.
Dear Bernina Machine and/or Designs Dealer:
There has been a bit of confusion among the Bernina reseller network as to the ’Notice of
Copyright Infringement’ and ‘Cease & Desist Demand’ you received from Imageline, Inc. last
week. I sincerely hope this e-mail message helps to clarify some of this confusion for you:
1. Whether you are an authorized Bernina dealer or not, you are receiving this notice because
we have reason to believe that willful copyright infringement activities are taking place
within your embroidery store and over the Internet by your store personnel on behalf of you
and your customers.
2. Under current U.S. Copyright laws (see www.copyright.gov), both you and your end user
customers, who have displayed, copied, licensed, given away for free, stitched, or otherwise
distributed or modified any copyrighted design owned exclusively by Imageline, Inc., are
liable for copyright infringement. If you have done so AFTER we gave official notice to your
Bernina and/or Dakota Collectibles suppliers in January 2009, your infringement activities
may be deemed willful, and subject you to the maximum of $150,000.00 per independent
infringement.
3. Copyright Infringement is a “strict liability” offense under the laws of the United States of
America and most countries that Bernina and Dakota Collectibles operate in are also
signatories to the Berne Convention and other international treaties protecting registered
copyright-protected works. See the anti-piracy FAQ section of the website for the Software
and Information Industry Association (www.SIIA,net) in Washington, D.C. to which
Imageline is an active member, for more information on copyright infringement definitions,

enforcement, and liabilities. A Press Release issued recently by the SIIA on Imageline’s
behalf is also attached for your review.
4. Many Bernina dealers have informed us that they did not receive notice from Bernina in
January 2009, yet Bernina has claimed to us in writing they provided notice to “all” of their
authorized machine and embroidery design resellers, worldwide. This vital information is
critically important to both you and us as we file lawsuits and determine the degree of
willfulness involved in this massive worldwide copyright infringement network initiated
primarily by Bernina, and the Bernina-owned embroidery design entities of OESD and Great
Notions.
5. We have also found infringing embroidery designs owned exclusively in 2010 embroidery
design catalogs, laminated displays, and CDs labeled as owned by Great Notions, OSED, and
Dakota Collectibles at numerous Bernina stores our investigators have visited in recent
months.
6. Since you have now been officially notified of copyright infringement, you are required to
maintain ALL records (print and electronic) and not destroy any potential evidence that could
be involved with these pending lawsuits.
7. If you would like to try and resolve these issues amicably with Imageline, you or your
attorney should contact us at the below listed address or via e-mail immediately. Otherwise,
we will assume that you prefer for us to file suit against you, personally, and your
embroidery business operation.
8. We have reached out repeatedly to the senior business executives of both Bernina and
Dakota Collectibles. We have been completely ignored. We never allow a known incident of
copyright infringement to go unresolved and we demand that the infringers are held
accountable in either our civil or criminal justice systems , or in some extreme cases, both.
9. Imageline’s corporate headquarters has recently relocated to Hollywood, Florida (see

contact information below). We also maintain an embroidery design production operation in
Ashland, Virginia, called Logoworks International. Logoworks is not directly involved with
this infringement claim.
10. In our prior e-mail message of June 17, 2009, which you have already received, we showed
you documented evidence of thirty-three (33) infringing embroidery designs that our
investigators have acquired or downloaded from currently active Bernina-related stores
and/or website operators. There are substantially more infringing designs, as Bernina was
given a list of over one hundred and sixty-six (166) such infringements in January 2009. We
have found the claims by Bernina senior business executives and their outside legal counsel
in Chicago that they took our notices seriously almost eighteen (18) months ago to be
completely false and intentionally misleading. Please ask your own independent intellectual
property attorney what that means to you and your potential liability in these pending cases.
Copyright infringement is a VERY serious matter. Those who respond to us professionally will
be treated accordingly.
The key question for our investigators at this point it time is whether or not you were officially
notified by Bernina or Dakota Collectibles as to the known infringing activities taking place at
your store location or on the various Bernina or Dakota Collectibles websites and resellers in
January 2009?
Thank you for responding to us with the critical information requested in this and our prior June
17th e-mail message as soon as possible.
Chairman/CEO
Imageline, Inc.
Imageline, Inc.
2012 Hollywood Blvd., Suite D
(804) 368-8731 – voice
(804) 368-8721 - fax

Exhibit
J
From: dnoble2006@comcast.net
To: berninaplano@verizon.net, berninasat@aol.com, berninasbest@cableone.net,
berninasew@socket.net, berninashipshewana@embarqmail.com, berninatpa@aol.com,
berninatpa1@aol.com, berninaworldofsewing@ncrrbiz.com, berrypatchfabrics@charter.net,
bethscreative@sbcglobal.net, gpaine3@yahoo.com
Sent: 6/29/2010 11:03:37 A.M. Central Daylight Time
Subj: Fwd: More continuing infringements
Dear Bernina Machine and Embroidery Design Dealers,
Please check out the links in the e-mail correspondence below. These links
show you current infringing activity involving Bernina, Dakota Collectibles,
and possibly your store operations and customers, as well.
We have now sent Bernina headquarters copies of over 250 infringing

embroidery designs and design packs found throughout their distribution
networks over the past few years.
Please have your attorney, not Bernina's attorney, contact us immediately.
Thank you.
Imageline, Inc.
----- Forwarded Message -----

From: "George Riddick" <griddick@imageline2.com>
To: dnoble2006@comcast.net
Sent: Monday, June 28, 2010 10:37:24 PM
Subject: FW: More continuing infringement s
Debbie,
The below e‐mail also needs to be distributed to all embroidery design dealers on our active list
tomorrow morning.
This notice illustrates yet another Imageline copyright‐registered design that is currently being infringed
by many of the embroidery design dealers we are now notifying. The official ‘Bernina lawyer letter’ we
received earlier today (from Brian Fergemann … Bernina’s outside litigation counsel in Chicago)
continues to threaten Imageline for telling the truth and falsely claim that we have not provided
examples of these ongoing infringements to the Bernina and Dakota Collectibles embroidery design
dealers and resellers.
He also continues to falsely claim that Imageline does not own these designs. Why Mr. Fergemann, and
his Bernina counterpart, Mike Perich, continue these lies and cover‐up excuses is unclear to me at this
time. The truth will prevail.
The truth is that we have now documented and sent almost 250 examples of embroidery designs and
design packs being infringed by Bernina, Great Notions, Embroidery Supply, OESD, and/or Dakota
Collectibles around the world over the past few years … and many of these ongoing infringements
continue on today, June 29, 2010.
Please make sure that those dealers who are not displaying or distributing embroidery designs, and have
also not done so for the past three years, are removed from our mailing lists.
Thank you.
George
From: George Riddick [mailto:gpaine3@yahoo.com]

Sent: Sunday, June 27, 2010 11:14 PM
To: dnoble@logoworks2.com
Cc: ggray528@yahoo.com; griddick@imageline2.com; robert@smoothrunninggraphics.com; George
Paine; mpaine44@yahoo.com
Subject: More continuing infringement s
Debbie,
As extraordinary as it may seem, Dakota Collectibles ("Dakota") continues to willfully

infringe copyright-registered designs owned exclusively by Imageline, as well. Dakota
senior business executives were first officially notified by Imageline all the way back in
December 2008. After that notification, we also found Dakota providing our proprietary
designs, which they have obviously stolen, to Zazzle, Logo Sportswear, and many other
third party organizations.
The Imageline image below was sent to over 900 embroidery design dealers/resellers
recently yet remain on the Dakota Collectibles website as of June 27, 2010. I personally
find this ongoing willful infringement activity from a company that relies on adequate
copyright protection for their own survival as shocking.
http://www.dakotacollectibles.com/warehouse/stock_detail.asp?stockcode=XM0280&vie
w=&return=/comm/section_detail.asp?useraction=fromdetail
As far as we can tell, Dakota Collectibles, like Bernina, NEVER bothered to notify their
worldwide embroidery design dealer/online reseller network, or end user customers,
that they had been unlawfully licensed pirated artwork by Dakota.
As you may or may not know, we also discovered addiona infringing Imageline designs
in the 2010 Dakota Collectibles printed design catalogs when our investigators
researched and visited numerous Bernina dealers over the past few months. We are
now including this official notice of continuing infringement by Dakota Collectibles in our
regular dealer notifications.
To make things worse,Dakota Collectibles has recently announced a whole new line of
screen print-oriented "clipart illustrations and designs", making them a direct competitor
to Imageline in our traditional markets worldwide, as well.
The senior business executives at Dakota were notified again last month with a
final attempt to try and resolve these claims before we are forced file federal lawsuits
against Dakota and their dealers. Once again, our requests were completely ignored.
Apparently, this company could care less how we proceed against their dealer/retailer
network, online resellers, and end user embroidery design customers. They seem to be
inviting us to file suit.
We will be notifying another large group of dealers we suspect are carrying these
infringing Dakota embroidery design and/or print products as well over the next few
weeks..I will work with you on the preparation of this new non-Bernina embroidery
design dealer spreadsheet this coming week.
I hope you enjoyed your reunion weekend.
George
Exhibit
K
Bernina Infringement Network
Ongoing Bernina Willful Copyright infringement and Cover-up Plan
HAS BERNINA EVER SHOWN YOU THESE STOLEN DESIGNS? IF YOU ARE
LIKE OTHER BERNINA EMBROIDERY DESIGN DEALERS WE HAVE
SPOKEN TO OR WHO HAVE CONTACTED US, THE ANSWER IS “NO”.
MARTIN FAVRE, PRESIDENT OF BERNINA, HAS KNOWN ABOUT THESE
WILLFUL INFRINGEMNTS SINCE JANUARY 2009. WHY WEREN’T YOU
NOTIFIED? PLEASE ASK YOUR OWN LAWYER THIS QUESTION.
Imageline, in good faith, attempted to present the information below to BerninaUSA

senior business executives in Chicago in May 2010. The meeting was abruptly cancelled
by Bernina without explanation, forcing Imageline to protect its property by demanding
that all Bernina dealers immediately cease and desist from any further infringements of
our property AND notify all of your customers that they are using stolen property and are
subject to additional copyright infringement claims, as well.
Many of the below infringements were identified in the catalogs and online at Bernina
Retail stores in April and May 2010. The majority of these infringing embroidery designs
were specifically identified to Mike Perich of BerninaUSA and Bernina’s outside legal
counsel, Brian Fergemann in January 2009. Mr. Perich and Mr. Fergemann intentionally
lied to Imageline and claimed all of the infringing designs had been removed from every
authorized Bernina dealership worldwide.
These “gentlemen” also tried to claim that Imageline did not own these designs and that
the designs were improperly registered with the U.S. Copyright Office. Both of these
claims are blatantly false and were apparently intended to mislead Bernina dealers into
thinking that their ongoing infringement activities pertaining to Imageline’s proprietary
designs were somehow legal, as well.
These actions by senior Bernina USA executives and outside litigators FORCED
Imageline to notify all Bernina dealers directly in June 2010.
As indicated to Martin Faure, the president CEO of BerninaUSA, repeatedly, Imageline

has subsequently refused to negotiate with Mr. Perich or Mr. Fergemann in the potential
resolution of this ongoing infringing activity in June 2010. Bernina has thus far refused to
identify a senior business executive who is willing to be truthful with Imageline as we
attempt to get to the bottom of these unlawful activities and hold the correct people
accountable UNDER THE LAW. We need Bernina to tell its dealers the truth in order to
protect you as a Bernina machine or embroidery design dealer or online reseller, as well
as our customers who are currently using illegally licensed images obtained within the
Bernina embroidery operations worldwide.
Thank you to the authorized Bernina and embroidery design dealers who have
offered to help. You requested that we provide you examples of many of the roughly
250 infringing designs and design packs we have found throughout the Bernina
© 1990-2010 Imageline, Inc. All Rights Reserved

Infringement Network in the past few years. Enclosed is yet another report showing
you screen captures and color printouts of these stolen images and designs.
Without the honesty, full disclosure, and cooperation of Bernina worldwide in this
complex ongoing research and documentation process, it could easily be many more
months before all of your ongoing infringing activities are identified. The below detailed
image comparison document identifies the proprietary Imageline images and designs we
are evaluating to date and infringing copies of these designs as identified on the Bernina
products and websites.
The Bernina infringed designs are shown in the left hand column of the following
comparison report, while the actual illustrations and designs as registered with the
U.S. Copyright Office by Imageline in group registrations called the Imageline
Master Gallery and the Imageline Design Gallery in 1996 and 1997 (see
www.copyrights.gov) are listed in the right hand column.
According to Mike Perich of BerninaUSA, and Bernina attorney Brian Fergemann, you
were officially notified of infringement on the vast majority of these infringing designs in
January 2009. ALL Bernina dealers we have talked to to date have denied that what both
Mr.Perich and Mr.Fergemann told Imageline is true.
Failure to remove copyright-registered embroidery designs after receiving official notice

constitutes willful copyright infringement under United States copyright laws and
subjects the infringing distributor/dealer to statutory damage claims of up to $150,000.00
per independent infringement. Ongoing willful copyright infringement also has criminal
implications under current U.S. copyright law.
Below is a sampling of the designs owned exclusively by Imageline, Inc. that are
presently being displayed, or were formerly displayed in catalogs, bundled on CDs,
USBs, and other electronic media in your stores, and also made available online by and
from your Embroidery Take-Out (“ETO”) and other design distribution systems in your
retail outlet or through Bernina-sponsored website services.
If similar or identical Imageline images/designs are listed more than once below, it is
because the designs were found to be infringing in more than one Bernina-related
product or service, or a product and/or service provided by a Bernina online
reseller, Embroidery Supply, or Dakota Collectibles.
*This comparison analysis and report, as well all images, illustrations, and designs
contained herein are the exclusive copyrighted property of Imageline, Inc. ©1990-2010.
All rights reserved. Protected under U.S. copyright laws and international copyright
treaties.

CONFIDENTIAL
1. Registered with The U.S. Copyright Office in the Imageline Design Gallery
(VA0000841528) on March 18, 1997.
2. Registered with The U.S. Copyright Office in the Imageline Master Gallery
(VA0000751565) on May 3, 1996.
3. Registered with The U.S. Copyright Office in the Imageline Master Gallery
(VA0000751565) on May 3, 1996.
________________________________________________________________________
4. Registered with The U.S. Copyright Office in LogoExpress LogoWorks

(VA0000791082) on June 10, 1996.

________________________________________________________________________
The below illustrations and designs are registered by Imageline in either the
Imageline Master Gallery group registration or the Imageline Design Gallery group
registration in 1996 and 1997. Some designs were registered in the Logoworks or
Headliners collective registrations. Deposit copies from each of these Imageline
registrations can be obtained from the U.S. Copyright Office/Library of Congress
archives in Washington D.C.
________________________________________________________________________
5. Registered with The U.S. Copyright Office in the Imageline Master Gallery group
registration (VA0000751565) on May 3, 1996.
________________________________________________________________________
6. Registered with the U.S. Copyright Office in the Imageline Design Gallery group
registration (VA0000841528) on March 18, 1997.
________________________________________________________________________
registration (VA0000841528) on March 18, 1997.

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
16. Designs from several Imageline group registrations.
________________________________________________________________________
17. Designs form several Imageline group registrations.
________________________________________________________________________

________________________________________________________________________
Twelve (12) Imageline designs were found in this one Bernina/Great Notions design
pack, alone and are also available in the Bernina/Great Notions “Printables” collections
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
registration on March 18, 1997.
________________________________________________________________________

(VA0000791082) on June 10, 1996.
_______________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
33. Registered with the U.S. Copyright Office in the Imageline HeadLiners collection
(VA0000844189) on March 12, 1997.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
_______________________________________________________________________

(VA0000791082) on June 10, 1996.
________________________________________________________________________

(VA0000791082) on June 10, 1996.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.

________________________________________________________________________
________________________________________________________________________

(VA0000791082) on June 10, 1996.
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
_______________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
Below are additional samples of Imageline designs that have been found infringing
on the products, websites, and services associated with Bernina, Great Notions,
OESD, Embroidery Take-Out, Embroidery Supply, and/or Dakota Collectibles:
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

(VA0000844189) on March 12, 1997.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
_______________________________________________________________________
More infringing designs captured directly off of Bernina catalogs, embroidery design
libraries, design packs, products, libraries, and websites. These Imageline designs are all
copyright-registered in various Imageline group registrations.


_______________________________________________________________________

The following proprietary Imageline illustrations and designs were found infringing
on one or more on the web sites and/or products owned and operated by Bernina
USA, Great Notions, OESD, or one of their authorized retail dealers or distributors.
The illustrations and designs were all designated as owned exclusively by one of the
Bernina companies.
______________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
_______________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
_______________________________________________________________________
________________________________________________________________________

(VA0000791082) on June 10, 1996.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

(VA0000791082) on June 10, 1996.

________________________________________________________________________
________________________________________________________________________
(VA0000844189) on March 12, 1997.
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
224.-229. Imageline designs registered in various Imageline group registrations.

________________________________________________________________________
Examples of ‘Printables’ digital file output from Great Notions for print and
Internet markets . High resolution printouts or screen images are made from the
actual embroidery files themselves after they are digitized. Competes directly
against electronic clip art illustrations available from Imageline and others.
_______________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
________________________________________________________________________
Great Notions/OESD Design Packs containing one or more Imageline designs (60)
236.-295.
Great Notions Design

Packs
Baby 3
BASEBALL
CHEERLEADING
Christmas A
FALL HOLIDAY II
FALL/HALLOWEEN I

FALL/HALLOWEEN III
FALL/HALLOWEEN IV
FEMALE ATHLETE I
FEMALE ATHLETES II
FOOTBALL I
GOLF II
GREAT OUTDOORS
GREETING CARD I
HALLOWEEN VI
Hearts 2
HIGH SCHOOL ACTIVITIES I
HIGH SCHOOL ACTIVITIES
II
HIKING & CAMPING I
Holiday 1
Holiday 5
JAZZ I
MAILBOX I
MARDI GRAS I
Martial Arts 1
MEDICAL I
MENS HOBBIES III
MILITARY I
MIXED HOLIDAY I
Musical Instruments 1
NATIVITY I
OCCUPATIONAL
Occupational 1
Occupational 4
Patriotic 3
Patriotic 4
RACE BANNER I
RACE CARS I
RACE SERIES I
RACING 3
Religion 1
Religion 2
RELIGIOUS DESIGNS I
RELIGIOUS DESIGNS II
RELIGIOUS I
SAILBOATS I
SAILING & LIGHTHOUSE
SCHOOL DAYS 2
SCHOOL DAYS I
SCHOOL DAYS II
SCHOOL HOUSE I
SKI LODGE
SKI LODGE I
SPACE EXPLORATION 1
SPORTS PACK II
SPRING HOLIDAY VI

SUMMER
TEACHING I
WEDDINGS 1

Exhibit
L
From: George Riddick <gpaine3@yahoo.com>

Date: July 9, 2010 2:33:23 PM EDT
To: Once Upon A Quilt <ouaq@bellsouth.net>
Cc: dnoble@logoworks2.com, rschermerhorn@logoworks2.com, griddick@imageline2.com,
mpaine@islandview2.com, ggray528@yahoo.com
Subject: Transfer of Bernina Warranty and Support Services Immediately
Dear Lisa,

Please make arrangements to transfer both our machine and software warranty and support
services to the Bernina dealer here in Richmond, Virginia today. We have never been properly
trained on these machines or the software, and the local dealer now refuses to even answer
our phone calls. We had someone scheduled to do the training at our office, but they were
abruptly halted by instructions from up the Bernina chain. You better believe that our lawyers
are right on top of that one.

As you know, we tried our best to work out an amicable resolution to this global piracy network
with Bernina corporate and our overtures have been solidly rejected. The letter sent to all
Bernina dealers recently from Bernina ‘s attorney is Chicago is full of lies. There are Bernina
dealers we really like that have voluntarily surfaced and are making the wise decision to
support Imageline, Logoworks, and copyright protection in this controversy. They do not
believe in blindly supporting known digital pirates, and putting their own business and integrity
at risk by endorsing obvious deceit and cover‐up activities that are still ongoing today (and have
been continuing for well over eighteen months now) from Bernina corporate in Chicago. Others
are not cooperating. Huge mistake!

I am not at all intimidated by these clowns from Chicago and Switzerland. In fact, I have never
witnessed anything even half this unprofessional in the thirty plus (30+) years in the technology
industry since I left IBM in 1980. Your abandonment of our rightful cause will come back to
haunt you in stages, Lisa. You should have known better, recognized Martin for what he truly is,
and realized that everything I ever told you was 100% truthful. Can you honestly say that about
Mike Perich or Martin Favre (who appears to have sent to Siberia), or anyone else at corporate
Bernina? I didn’t think so!

We have now seen the evidence and will be doing what we have been forced to do to expose
the truth in this matter and support our valuable property from known thieves. I hope you will
reconsider and have your attorney contact us immediately. I will then put him/her in touch with
one of our attorneys.

Please ask your Bernina dealer contacts here in Richmond to contact Robert, the manager of
our embroidery design facilities in Ashland, as early this afternoon as possible.

As a personal word of caution from a friend. Please hire your own attorney there in Ft.
Lauderdale/Dania and do not rely solely on what you are being told by the Bernina attorneys in
Chicago. The most recent letter the Bernina attorneys sent you (and all other Bernina dealers,
as well) is full of lies and half‐truths and they even knew they were lying when the letters were
sent.

We can prove this, Lisa. Why do you think we were so anxious to meet with Bernina business
executives in Chicago in may, before proceeding any faster with this business venture?

Please also respond to this e‐mail and tell me when you have completed this warranty re‐
assignment critical task.

Thank you.

Chairman/CEO
Imageline, Inc.

P.s. I paid for all of these machines and software with an Imageline business account check or
credit card. Please quit pretending you thought I was going to use the machines personally at
my home. You shipped machines directly to our business offices here in Ashland and in
Hollywood, Florida.
Exhibit
M
From: Charlton Sewing Center [mailto:sewingmachines@charterinternet.com]

Sent: Friday, July 02, 2010 5:03 PM
To: Sina Fritz
Subject: Re: From Bernina of America: Imageline-Riddick Update 7-2-10
Dear Bernina,
I am finding the e-mails from Imageline-Riddick upsetting and frightening. I am a small dealer and my
families well-being is totally dependent on this shop. With all due respect, internet threats that come in on
this regularity and with such extensive documentation make it difficult to have a "great Fourth of July". I
look forward to this matter being resolved.
Sincerely
Cathy J. Racine
owner - The Charlton Sewing Center, New England's Sewing Sanctuary
Exhibit
N
July 14, 2010
Brian D. Fergemann
Partner
Winston & Strawn, LLP
35 West Wacker Drive
Chicago, Illinois 60601-9703 Delivered via electronic mail and facsimile to 312-558-5700
Dear Mr. Fergemann:
Several weeks ago I indicated to you that I would provide you a detailed response to the numerous false
allegations, bogus excuses, and intentionally misleading statements included in your “ridiculous” letter
to Imageline and all Bernina dealers of June 28, 2010, and, thus, my detailed response follows.
As you know, we have previously refused to provide any additional information to you, as we feel you
have been intentionally deceitful with Imageline ever since we first were told to communicate with you
regarding Bernina’s massive worldwide copyright infringement network in January 2009. Unfortunately,
BerninaUSA and Bernina Switzerland have refused to give us anyone else to contact.
Based on your obvious deceit, and new information in your most recent letter delivered to all Bernina
dealers, it is now clear to Imageline that you, as well as the senior business executives at BerninaUSA
who directed your actions, assuming there are any, are all personally guilty of willful copyright
infringement under U.S. Copyright Laws. Please inform your managing partner of this serious claim.
We believe the facts will clearly show that you are guilty of willful copyright infringement, yourself, as
well as your clients, and we have respectfully requested that you remove yourself from this controversy
immediately. We certainly know that you have a direct and significant conflict of interest with the best
interests of these hundreds of independent Bernina machine and embroidery design dealers around the
country and the world.
Your letter of June 28, 2010 is full of lies, threats, and false encouragement for your clients and their
dealers to continue infringing.
You mentioned Imageline’s “outrageous and unsupported settlement demands” in your letter of June28,
2010. What exactly do you mean by this, Mr. Fergemann? We made no such demand to you, or anyone
else for that matter. Are you simply trying to inflame, mislead, and confuse these Bernina dealers?
Based on your recent June 28, 2010 letter to both Imageline and all Bernina dealers, we were reminded
that you apparently know absolutely nothing about the current copyright laws of this country. How can
you properly advise these Bernina dealers if you do not have a clue what you are doing? I had almost
forgotten that we reached this exact same conclusion about your competence when we were forced to
deal with you back in early 2009. Where did you get your law degree Mr. Fergemann ... Sears?
Imageline, Inc. Contact Information
2012 Hollywood Boulevard 804.368.8731 Voice
Suite D 804.368.8721 FAX
Hollywood, FL 33020 www.imageline2.com
I will try to enlighten both you, and these now totally confused Bernina dealers, in this response to your
last intentionally misleading and inaccurate communications of June 28, 2010. We have strongly
encouraged these independent Bernina dealers to seek their own independent and competent legal
representation. Anyone who relies solely on your faulty and amateurish advice is in deep trouble in our
view.
As you know, for the past two months, Mr. Martin Favre, former president of BerninaUSA, has refused
to even respond to our numerous attempts to communicate directly with him regarding this flagrant and
ongoing infringement activity. Mr. Favre claims you now speak for Bernina. This bizarre decision by the
supposed president of BerninaUSA has left us no choice other than to try and resolve these ongoing
infringement activities directly with the Bernina retail network of independent dealers worldwide. Do
you also represent Bernina corporate headquarters in Switzerland, Mr. Fergemann?
Please immediately inform us of any independent Bernina dealers who you or your law firm represent
directly or indirectly.
As you know, I talked with Mr. Favre in mid-May 2010 from our Imageline offices in Hollywood,
Florida, and voluntarily offered to fly to Chicago to meet with Mr. Favre, and other senior Bernina
business executives, in a sincere attempt to resolve these massive and ongoing copyright infringement
discoveries and claims without having to get the roughly 900 independent Bernina dealers worldwide
involved, or file federal lawsuits. Mr. Favre set a time for us to meet in Chicago in late May.
Several days before we were supposed to meet, I was informed that you had blocked this business
meeting. Under what authority did you take that action, Mr. Fergemann? Did you inform the Bernina
dealers you were doing so? Did you inform them how that decision by you increased their risks of
liability? Have you agreed to indemnify all of these dealers from any and all damages caused directly by
your deceit and failure to notify them correctly?
Did you explain to these dealers what “strict liability” copyright laws mean, Mr. Fergemann? Do they
know that they, and their customers, have liability whether they knew Bernina headquarters was setting
them up for serious copyright infringement claims or not?
Since you abruptly cancelled the Chicago meeting, the ongoing infringing activities at the Bernina
dealer level, and through their online resellers, have continued through both June and July. We find new
Bernina-related infringements every week. What, exactly, have you done to stop these infringements,
Mr. Fergemann?
Recently, we have sent each of your Bernina dealers detailed Word documents which show roughly two
hundred and twenty (220+) known and previously identified infringing embroidery designs or design
packs we have found unlawfully being infringed by Bernina, OESD, Great Notions,
Embroideryonline.com, and through your in-store Embroidery-Take-Out (ETO) service. Why didn’t you

Suite D 804.368.8721 FAX
send copies of each of these identified infringements to every one of these loyal dealers and online
resellers yourself when you first received them from Imageline, Mr. Fergemann? We identified most of
them for you specifically in January 2009.
Have you informed these Bernina dealers and online resellers that their involvement in the unlawful
display, licensing, copying, stitching, printing, and other distribution of these stolen designs also
constitutes copyright infringement under current United States copyright laws? Have you told them that
each of their end user customers, who are using, or have ever used, any of these stolen designs are also
liable for copyright infringement claims by the rightful owner of these copyright-protected designs?
Did you inform these dealers and resellers that they could simply use a “cancelled” stamp, or sticker,
affixed alongside an Imageline image in their laminated display cases and catalogs, and not remove the
infringed design completely?
Why do you refer to these serious copyright infringement claims as blusterous claims in the letter you
sent to these unsuspecting dealers on June 28, 2010?
Why have the vast majority of these Bernina dealers informed Imageline recently that they NEVER
heard from you or any senior Bernina business executives in January 2009 … after you told us that they
had ALL been informed of the infringing activities taking place in their stores, and that all infringing
designs had been removed from your online stores, dealer display catalogs, and your dealer design packs
and archives. This was a bold face lie, Mr. Fergemann. Don’t these loyal dealers deserve better?
We have strongly encouraged each of these Bernina machine and embroidery design dealers to seek
their own independent, and competent, intellectual property counsel, Mr. Fergemann. We believe you
are intentionally trying to deceive them and cover-up the true facts involved in this complex case. What
you have been telling these dealers is intentionally false, misleading, and deceitful, violates your code of
ethics, and will likely cause them yet additional damages over time.
Why did you say “it seems likely that many, if not all, of the Imageline designs have been freely
available online and in the public domain prior to Imageline’s inclusion of them in its compilations.”?
You know this is not true.
Are you a copyright and embroidery digital design expert, Mr. Fergemann? On what basis did you
conclude that “it is quite unlikely that Imageline has the sole and exclusive right to create any image of
a volleyball, soccer ball, baseball, basketball, or dart board”, or “tools, and ice cream sundae, or
religious symbols”. What does this even mean, Mr. Fergemann? Have you ever been involved with an
image industry copyright matter? Have you ever spoken to anyone at the U.S. Copyright Office?
Certainly someone in your law firm knows this law. Did you even bother to check?
Shouldn’t you at least know a little bit about the copyright registration of digital embroidery designs,
since you claim to represent both BerninaUSA and OESD, Mr. Fergemann? How could you possibly
Suite D 804.368.8721 FAX
conclude that the U.S. Copyright Office Visual Arts Department Examiners are incompetent and that
“many, if not all of the Imageline images do not appear to be sufficiently original to be eligible for
copyright protection”. Have you looked at the thousands of digital embroidery designs that OESD, Great
Notions and Bernina claim to their customers are protected by copyrights? Did you only say what you
said so that the Bernina dealers would be further misled and would continue with their in-store display
and distribution of these infringing designs?
For your information, many of the dealers you list as “authorized Bernina dealers” on your clients’
various websites are not Bernina dealers at all. Don’t you find those “advertising” claims by Bernina a
bit deceitful to their end-user customers and unfair to dealers who do not carry the Bernina lines, Mr.
Fergemann? We certainly do. And many of those non-Bernina dealers who have contacted us recently
seem to be more disgusted by Bernina’s deceitful business practices than even we at Imagline have
become over the past eighteen months since we were first introduced to you.
To make matters worse, one of Imageline’s sister companies recently acquired several of your over-
priced Bernina embroidery machines at retail, as well … only to learn later that they are not covered by
warranty for the use we intended them for. We will be pursuing this serious matter with Bernina, and
certain responsible U.S. government agencies, directly and separately from these infringement claims.
What kind of market scam is this, Mr. Fergemann?
We currently have three (3) brand new Bernina 830 and 630 machines in operation at one of our sister
companies, and we have found the Bernina service and support to absolutely dreadful from day one. As
of today, your dealers still refuse to answer our service calls or provide our staff with training.
Below, I will try to further address each of your bizarre, legally inaccurate, deceitful, and totally
hypocritical excuses for these ongoing willful infringements of Imageline’s proprietary property by the
Bernina worldwide infringement network for the past at least the past three years. I do this to clarify the
complete nonsense you included in your recent letter, which you sent to all Bernina dealers I am told.
1. The vast majority of the original Imageline designs presented to you as being infringed by
Bernina were registered with the U. S. Copyright Office in one of two “group” registrations
filed by Imageline in 1996 and 1997. Neither the Imageline Master Gallery nor the Imageline
Design Gallery were ever packaged as standalone products, or compilations, as you claim, but
rather are a group of individual designs (all produced by the same author), whereby each
design lives its own copyright life and is entitled to independent statutory protection under our
current copyright laws. Your claims to the contrary are intentionally false, misleading, and
deceitful. You can find deposit copies of each of these two Imageline group registrations at the
Library of Congress in Washington D.C. Why did you try to misled Bernina dealers into
thinking you had no access to the deposit copies of these copyright registrations?

Suite D 804.368.8721 FAX
2. Each of the vector-based clipart illustrations and designs we registered with the U.S. Copyright
Office independently qualifies for copyright protection, and registration, under U.S. laws. The
copyright office employs competent Visual Arts Examiners, which review each registration for
compliance under these laws … not know-it-all junior copyright defense attorneys, such as
you. The fact that your clients, who themselves depend on adequate copyright protection for
their own survival, would contest our exclusive ownership to, and qualification for registration
and protection, for these digital designs is one of the most disgusting displays of hypocrisy I
have witnessed in my 35 + years in this industry. Why have you tried so hard to deceive these
Bernina dealers with these bogus claims? In spite of what you might think, your loyal Bernina
dealers are NOT stupid, Mr. Fergemann.
3. Why do you twice refer to our legitimate claims as “your baseless and unsubstantiated claims”
in you June 28, 2010 letter, unless you were intentionally trying to deceive these dealers and
encourage them to continue infringing?
4. Finally, in some sort of obvious desperate attempt at further deception of Bernina dealers, you
claim that Imageline’s well-documented and legitimate claims “are completely without merit”,
and you even try to claim our efforts to protect our copyright-registered property is somehow
“trade disparagement, tortuous interference with prospective economic advantage , and
deceptive trade practices”.
We do not appreciate your comment that Imageline is “engaged in a shakedown operation”. Don’t you
operate under any legal code of ethics up there in Chicago? We have heard these exact same words
repeated by dozens of your Bernina dealers since they received this bogus and unprofessional “opinion”
from you. Or is this simply your excuse for your obvious failure to perform your duties in January 2009?
From what we understand, Mr. Favre has been removed from all of his senior executive responsibilities
with BerninaUSA. Please pass this letter along to the new president of BerninaUSA, as well as the
senior business executives and owners in Bernina’s corporate worldwide headquarters in Switzerland.
Please also ask Bernina and your law firm to assign a real attorney to this case if your clients want to try
and resolve these serious issues without further involvement of dealer networks and your customers.
I can assure you that Imageline is going to do everything humanly possible to protect our property from
this kind of theft. Each of your dealers would do this exact same thing if this happened to them.
Sincerely,

Chairman/CEO

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Exhibit
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Filed 1 Page 128 of 143
Public Catalog
Copyright Catalog (1978 to present)
Search Request: Builder = (imageline)[ in Keyword Anywhere ]
Search Results: Displaying 1 of 6 entries
Headliners.
Type of Work: Visual Material

Registration Number / Date: VA0000844189 / 1997-03-12
Title: Headliners.
Description: 27 p. + CD-ROM.
Notes: Text & collection of clip art.
Copyright Claimant: Imageline, Inc.
Date of Creation: 1996
Date of Publication: 1996-11-30
Names: Imageline, Inc.
Save, Print and Email (Help Page)

Select Download Format Full Record Format for Print/Save
Enter your email address: Email
Help Search History Titles Start Over
Contact Us | Request Copies | Get a Search Estimate | Frequently Asked Questions (FAQs) about
Copyright | Copyright Office Home Page | Library of Congress Home Page
cocatalog.loc.gov/cgi-bin/Pwebrecon.c… 1/1
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Public Catalog
[Imageline design gallery]

Title: [Imageline design gallery]
Description: Art reproductions.
Notes: Clip art.
Title from appl.
Previous Registration: Prev. reg. 1996, VA 751-565.
Basis of Claim: New Matter: new graphic designs.

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Imageline, Inc. master gallery.

Application Title: Imageline master gallery.
Title: Imageline, Inc. master gallery.
Description: Art reproductions.
Notes: Clip art.
Previous Registration: PicturePak SuperBundle prev. reg., 1996.
Basis of Claim: New Matter: additions.
Copyright Note: C.O. correspondence.
Other Title: PicturePak SuperBundle

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PicturePak plus : for Harvard Graphics 2.0 for Windows : the presentation...

Application Title: Imageline PicturePak plus for Harvard Graphics.
Title: PicturePak plus : for Harvard Graphics 2.0 for Windows : the presentation
toolkit.
Edition: General & business ed.
Description: Software package.
Previous Registration: Preexisting material: clip art images.
Basis of Claim: New Matter: text and rev. & new artwork.
Other Title: Imageline PicturePak plus for Harvard Graphics

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PicturePak SuperBundle : clip art : all the clip art you'll ever need!

Title: PicturePak SuperBundle : clip art : all the clip art you’ll ever need!
Description: CD-ROM + 6 computer disks.
Notes: Includes reference manual, computer graphics & product packaging.
Previous Registration: Preexisting material: PicturePak, no. 1-3, PicturePak ValuePak, no. 1 & Office
clips.
Basis of Claim: New Matter: compilation, new art and text, new packaging design for CD-
ROM & diskette media.
Other Title: SuperBundle
PicturePak
PicturePak ValuePak
Office clips

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Exhibit
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Exhibit
Q
Exhibit
R

Bernina vs. Riddick/Imageline - 080510d

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Case 1:10-cv-04917 Document 8-1 Filed 08/05/10 Page 1 of 143

IN THE UNITED STATES DISTRICT COURT

BERNINA OF AMERICA, INC., )

12/29/08 Email From G. Riddick to J. Woods........................................................................ Ex. A

1/5/09 Email from G. Riddick to P. Newton .......................................................................... Ex. B

1/2/09 Letter from B. Fergemann to G. Riddick ..................................................................... Ex. C

2/13/09 Email from G. Riddick to B. Fergemann ................................................................... Ex. D

6/3/10 Email from G. Riddick to M. Favre .............................................................................. Ex. E

6/28/10 Letter from B. Fergemann to G. Riddick.................................................................... Ex. F

6/17/10 Email from G. Riddick to L. Stevens ........................................................................ Ex. G

6/17/10 Email from G. Riddick to All Bernina Dealers ......................................................... Ex. H

6/25/10 Email from G. Riddick to All Bernina Dealers ........................................................... Ex. I

6/25/10 Email Chain from Imageline to All Bernina Dealers ..................................................Ex. J

6/30/10 Letter from G. Riddick to All Bernina Dealers ......................................................... Ex. K

7/9/10 Email from G. Riddick to L. Stevens ........................................................................... Ex. L

7/2/10 Email from C. Racine to Bernina ................................................................................Ex. M

7/14/10 Letter from G. Riddick to B. Fergemann ................................................................... Ex. N

Declaration of Kevin P. McCormick ...................................................................................... Ex. Q

Declaration of Marc H. Trachtenberg ..................................................................................... Ex. R

From: George Riddick [mailto:griddick@imageline2.com]

2. Retail store level infringement. $750.00 per design.

From: George Riddick [mailto:griddick@imageline2.com]

PERSONAL AND CONFIDENTIAL

Dear Mr. Newton,

There is no way on earth that this degree of obvious infringement activity

Imageline, as a company, and I, personally, have fought Internet and CD/DVD

In fact, we are always firm in this conviction. We will not willingly

George P. Riddick, III

(804) 525-6941 - voice

From: George Riddick [mailto:griddick@imageline2.com]

Dear Mr. Fergemann:

Nee Proposal. $7,500.00 per design, payable as follows:

George P. Riddick, III

From: George Riddick [mailto:griddick@imageline2.com]

Good morning, Martin

It makes no sense to those of us here at Imageline and Islandview

To refresh your mine as to the severity of our claims (*all of which we

1. At least fifty (50) of our individually copyright-registered

2. Roughly one hundred and fifty (150) additional infringing

3. Each Imageline proprietary image we have found to be infringing

4. Each of the Bernina-related or affiliated retail dealers and

images (and pay royalties back to you at Bernina) as well. These

5. Since all Imageline clipart illustrations and designs are

As I am sure you know by now, Imageline filed federal lawsuits against

Martin, we had such a fair and reasonable business-related resolution

George P. Riddick, III

Boca Raton, Florida

From: George Riddick

ISLANDVIEW TECHNOLOGIES MAY BE FORCED TO CHANGE ITS COURSE IN

George P. Riddick, III

2012 Hollywood Boulevard

(804) 368-8571 – voice

From: George Riddick

URGENT – COPYRIGHT INFRINGEMENT NOTIFICATION

THIS E-MAIL NOTIFICATION IS BEING SENT TO YOU ON BEHALF OF

Dear Bernina dealer:

George P. Riddick, III

(804) 368-8731 – voice

From: George Riddick [mailto:griddick@imageline2.com]

WE FULLY REALIZE THAT MANY PEOPLE DO NOT BOTHER TO READ LONG E-

Dear Bernina Machine and/or Designs Dealer:

Imageline is an active member, for more information on copyright infringement definitions,

9. Imageline’s corporate headquarters has recently relocated to Hollywood, Florida (see

George P. Riddick, III