Despite this type of signage being around for 30+ years it still provides one of the best ways of making long lasting signs. Each colour in a design is cut out separately from a sheet of coloured vinyl and is then layered up to create the required design. The advantage of this is each sheet has the corresponding colour impregnated throughout the vinyl and unlike printed vinyl is not just in the top layer of the material. This has a couple of advantages over printed vinyl; It is much more scratch proof and if it has illumination from the rear it gives a vibrant matching colour. This is why it is so good for light boxes as the colours in the day math the colours at night.
Live everything cut vinyl does have some limitations. The available colours are limited and effects like gradients are not possible so the artwork has to take this in account. Another factor is that for designs with many colours each colour has to be created and applied separately, adding to the cost and work involved in creating it.
It is a wonderful solution for graphics on walls, windows, painted surfaces and lightboxes.