Discussion:
What is the name of your state? Texas
I operate an online gift basket business that contracts with suppliers for the baskets and gifts I sell. A couple of days ago, I received a letter from a law firm telling me that the name of one of the items I am carrying is infringing on a trademark. They have asked me to remove the item, which I have absolutely no problem with at all, I did it immediately.
My problem is that they want me to respond within 15 days that I have removed it, the amount of sales of the particular item, and who my supplier is.
What I want to know is if I am obligated to answer their questions? At this point, the letter does not threaten legal action, but it is implied. I've sold one of this item in question, and probably made $10 at the most from it. Are they going to drag me into some kind of suit?
Please advise... I need to know whether I need to hire a lawyer.
Thanks
Answer:
Since the item was removed, I would respond that you have removed it and possibly provide the name of your supplier. Even though you only sold one of the item, I would not give the lawyer any sales information since that would be an admission on your part of copyright infringement. Each instance can put you on the hook for $150,000. You may want to respond that you were not aware of the infringement and that you will provide th ename of th esupplier in exchange for the copyright holder waiving any penalties against you.
Keep your records of your sales.
Answer:
Since the item was removed, I would respond that you have removed it and possibly provide the name of your supplier. Even though you only sold one of the item, I would not give the lawyer any sales information since that would be an admission on your part of copyright infringement. Each instance can put you on the hook for $150,000. You may want to respond that you were not aware of the infringement and that you will provide th ename of th esupplier in exchange for the copyright holder waiving any penalties against you.
Keep your records of your sales. Just a quick note, the OP specified that the issue was trademark infringement, not copyright infringement -- there are no statutory damages for trademark infringement, and besides, the $150,000 figure for statutory damages for copyright infringement only applies in the case of "willful" infringement, which usually requires the copyright owner to have notified the infringer of potential infringement, and then have the infringer continue to infringe. Normal statutory damages are set from $750 to $30,000.
I do agree, though, that turning over any information absent some sort of agreement not to sue would be a bad idea.