Elkin, N.C. – Chatham Fabrics division of CMI Industries Inc. has negotiated an out of court settlement of a copyright infringement suit against Microfibres Inc. of Paw-tucket, R.I. The suit concerned Microfibre copies of Chatham's Lancaster pattern.

''The Lancaster pattern has been very successful for Chatham,'' said Jeff Irwin, vice president, furniture fabrics business for Chatham Fabrics. ''This was our best placed pattern at the International Home Furnishings Market in High Point, N.C., in October, 1998 and April, 1999. We had over 1,000 placements. In fact, Lancaster is the best placed residential pattern we have ever experienced.''

''As a result, we commenced legal action against several competitors. The complete details of the settlement were not disclosed other than the fact that Chatham has agreed to license the Lancaster pattern to Microfibres.

''Microfibres agreed to license the Lancaster design and Chatham is now receiving royalties. A design copyright transcends the method of copying whether it be tufted, flocked, woven or printed or knit,'' Irwin pointed out. ''The copyright is on the design and not the method of manufacture.'' The Microfibres' copies of the Lancaster design were executed in a velvet construction.

''We have found several copies of Lancaster in as many as twenty colors,'' said Irwin. ''Lancaster obviously captured the attention of the market. Several of Chatham's competitors were no doubt jealous of the volume and placements we have enjoyed on Lancaster and more than reasonable facsimiles appeared in the U.S. and elsewhere.''

Chatham said that other actions are pending against other American fabric manufacturers. ''We will continue to vigorously protect our original designs against copying all over the globe. We want to put other manufacturers on notice and send a message to the market place that we will not tolerate copyright infringement. We are spending substantial amounts of money in designing our lines and developing these patterns. We want to protect this investment.''

Irwin said that Chatham's sales rate for 1999 is in the double-digit range more than last year.