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Tell your friend to copyright the design as soon as he can. Have him hire a lawyer soon afterwards so that he can sue Ed Hardy for copyright infringement unless Ed Hardy is willing to settle out of court with a legal document that states your friend get a percentage of the profits. One thing about being in a corporation, anything thing you make for a company is theirs property. So, unless Ed Hardy copyrighted that design, your friend might have a fighting chance to bring down a corporation, or at least embarrass them.

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