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A clipping path is a now obsolete way of making the background of an image disappear when you place the image in a page layout program, most likely InDesign. When I say obsolete, I mean it's still a valid technique but it doesn't actually need to officially be a clipping path anymore. I have the pen path outline around this Metro sign saved as Path 1. I could, if I wanted to, come to clipping path and define it as a clipping path. I don't need to do that. It's necessary.
Where I have to do that? When I place the image in In Design, the background would fall away automatically. But we can still get just the effect that we want without actually making into a clipping path, so I am just going to leave it as it is. So I am going to come over to InDesign where I have the image placed. It's just a humble JPEG and you can save paths with JPEGs. And then to activate the path I am going to select it, come to the Object menu, down to Clipping Path > Options, and Type.
I now have this option, and I only have this option because of the path that was saved in Photoshop. When I choose that, there were some other options that I might want to use. None of them relevant in this case, so I am going to click OK, and then the path is activated. Had I saved that with a clipping path, this is how it would have landed in InDesign. If you just save it as a regular path you get the option of turning that path on or off. And now at this point, I can come to my Window menu, I can come to my Text Wrap panel, and choose this third Text Wrap option, and increase the offset from the image to create an interesting text wrap, and then I'm just going to press my W key to see that without the guides turned on.
So that's just an example of how paths in Photoshop interact with paths in InDesign and in Illustrator.
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