Brilliant!!
(not for a name, but for the result of your effort)
eta:
You know, I'll bet that would make a very desirable pattern.
Just saying.
yeah, there might be copyright/trademark issues.
Maybe.
http://en.wikipedia.org/wiki/Smiley for trademark/copyright info.
http://www.smileycompany.com/corpora...and_conditions
Heck, I'd buy just the digitized files from you (and I don't even have an embroidery machine but I can always find one to borrow for a few hours).