ASo I am incredibly upset with my ignorance. I started dabbling in cake decorating about 3 years ago but have just started taking off this past year and was really beginning to feel confident. I have even been asked to do a wedding cake! So I was on here browsing and came across information about copyright laws. Well all my best and most recent cakes have been characters! Spiderman, Angry Birds, Yo Gabba Gabba. So you can imagine me, not having known about these laws, feeling so terribly discouraged. I removed them all from my FB cakes album and more than half my cakes are gone from my "portfolio" and I pretty much have to start over, right when I was feeling like I could take the next step. I have a Power Rangers cake coming up in January so I have to make sure I do it right and lawfully. I do not have a business license yet so I have not been charging anyone but it is something I know I need to look into ASAP especially if I am to do a wedding cake and charge for it. Please, is there anything else I need to be careful of? I don't want to get in trouble and I really want to do this forever so I need to get going right :(

yes, getting a license is the first step. Also look into liability insurance.

For character cakes from now on, maybe you could create the backdrop and have the customer add their own toy figures? I've seen many businesses post on their FB pics that "character toys were added by client". This way, the cake could still be in your portfolio and you'll not be taking any risk.

ASo if I buy the toy I cannot put it on the cake? I have been confused by that..

Yes, you can put the figures on yourself. By buying the toys, you are buying the right to use them. It doesn't matter who puts them on the cake. Just include the cost of the toys in the price of the cake. It is the cakes with figures and emblems, etc., made by the cake maker that are copyright infringement.

You didn't say where you are located?  I, too, started to bake cakes and then found out that I could not do them legally in my state.  So, we built a commercial kitchen on our property and now I am licensed, permitted and insured. 

A

Don't forget to include your markup (to cover overhead) when you charge your customer for the cost of the figures.

AThere are several different legal areas where you should be compliant: - Health dept (some states allow home baking businesses, others require a licensed and inspected commercial kitchen) - Copyright law - Business license (usually with your city) - Zoning (city) - HOA regulations (if any) - Fictitious business name (county) - Liability insurance (usually not legally required but still a necessity) - Sales tax - Income tax - Business structure (if you want an LLC)

A I am in SC. I am waiting on a call back from someone at the health department as we speak. I believe I read 6 years ago the law was that yes, you did have to use a commercial kitchen, but my fingers are crossed that that has changed since 2006. Probably not considering my luck. I don't know what I'll do if I can't bake in my home.

AWow....I've got a long way to go.

ASo, just got off the phone with DHEC and SC does have a cottage law! Just put in place this past June. Yay me! I'm excited now and feeling a bit better. So going to do my research on that now :)

A Hi Mary :) I'm in Columbia. Love Charleston, very beautiful area. Thank you so much for the luck. I don't want to rush it, just want to make sure I'm doing it lawfully at this point. I would love to have a store front in the next 5-10 years. Still need lots of practice :)

AI am in Charleston! There is a cottage food law fb page for those of us in SC. Lots of useful info there! Also, we have a great ICES group here in te Lowcountry.

Just to get back to the original post for a moment.  Even if you are in a Cottage Food Act state or one that requires a license it is still against the Copyright Law to recreate a licensed character.  For instance, if someone were to make a Mickey Mouse hat in green it still has all the features of a Mickey Mouse hat/ears. This is not legal as it is still recognizable as Mickey ears.  It is best to do the set up like others have suggested and then put purchased characters on the cake.  No sense taking a chance on getting fined for infringement.

ICES isn't for businesses at all.  It's really for individuals.  Many of the members do have businesses, but it's really just a bunch of decorators sharing techniques etc.

This is a link to the SC ICES group.  http://www.scices.com/  You can also learn more about International Cake Exploration Society at www.ICES.org 

This is a link to the Facebook group of the SC Cottage Food Law  https://www.facebook.com/SCCottageFoodLaw

Good to know there are more of us here in SC!

Also, if you send me a pm, I'll give you my contact info.  Good to know someone close!

Another note about the original post - if you haven't charged for those cakes, you are not profiting from their copyright. You are using it for your own personal use.  Not sure it's really a problem until you start making money from it. 

AThe guy from the health department called me back and explained the cottage law to me also giving me a link to the website. I'm so excited it's that simple! I was so worried I would have to find a commercial kitchen, I really didn't know how I would do it with my little ones. Thank you so much for the info on the support groups! I will definitely be checking them out! :)