In 2012, the band traveled to Sound of Sirens Studio in California with producer Toshi Kasai to create their second album, Civil Disobedience for Losers, which was then released on October 30, 2012 Their first signed release features guest appearances by Melvins drummers Dale Crover and Coady Willis. Following the release of the album, the group embarked on the North American leg of Canadian punk rock band, Billy Talent's Dead Silence Tour from March 14, 2013 to April 16. 2012 . This included opening for Red Fang and Billy Talent for the first leg of the tour. During the second leg, Red Fang was switched out for the bands Hollerado and Sum 41.
On May 24, 2013, Indian Handcrafts uploaded a music video for Bruce Lee, the first track from Civil Disobedience for Losers onto YouTube. Shortly after the release, Canadian entertainment magazine, Exclaim! published a review stating "if you've got a thing for vintage kung fu movies, then you're going to want to check out the new video for Indian Handcrafts' tune Bruce Lee. This riff-rocking opening cut from last year's Civil Disobedience for Losers shows the duo battling it out in a paper-walled room. There are headbands, nunchucks and roundhouse kicks galore, while the grainy film quality adds to the B movie chic. You might even notice a couple pro wrestling moves thrown in for fun."
From August 10–11, 2013, Indian Handcrafts performed at the Heavy Montreal music festival.