Former F.I.T. Student Accuses School of Profiting Off Her Design

Student who won a design competition sues school over the use of her design.
2:16 | 08/20/14

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Transcript for Former F.I.T. Student Accuses School of Profiting Off Her Design
Now to the battle over a backpack. A graduate from a top fashion school says her school and Barnes & noble are profiting from her design and she hasn't seen a dime. Now she's fighting back and gio Benitez has that story for us. Reporter: This morning a former graduate student from the prestigious New York college fashion institute of technology is taking on her alma mater and megabook store chain Barnes & noble suing them both over this. I feel a little betrayed. Reporter: Diana says she designed the everything backpack in 2010 as part of a class assignment. She claims F.I.T. Then entered the bags into a back to campus contest with Barnes & noble who named Rubio and her design the contest winner. I did receive the formal paperwork that goes with it. If someone is going to produce your bag, a signed waiver but I did not sign it. Reporter: The bookstore which sells the bag for $39.95 credits Rubio as the designer on its website. The tag inside the bag even displays her name but Diana is suing for copyright infringement and monetary damages. Court document alleging she has received no payment nor has she authorized the manufacturer, marketing and sale of such backpacks. It's a very confusing feeling. Knowing that my backpack is my design and I see people on the street wearing it all the time and I have not received any monetary value for it at all. Reporter: Barnes & noble telling ABC news, we pay royalties to F.I.T. For student designs, continuing, this matter is between F.I.T. And miss Rubio. F.I.t. Replying although we have not been formally served with a lawsuit we are aware of it and we have begun our fact-finding to learn the circumstances and if appropriate do right by Ms. Rubio scombt. This is the backpack at the center of the case. The court will be comparing this bag to Diana's drawing and inside that bag, remember, her name is written inside in the tag. But you know if you go on the website right now it's so popular if you go on you'll find the reviews on here 4 1/2 out of five stars. It's a cool bag. Sounds like she's got a really good case. There will be a lot of students that will be looking in particular and seeing how this shakes out That's right. Absolutely. Coming up --

This transcript has been automatically generated and may not be 100% accurate.

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