Lawsuit Over Unintentional Copyright and Trademark Infringment

[lugger]

I have a friend who is being sued for copyright/trademark as he was selling items that were copyright/trademark infringement. He didn't know they were infringing. The plaintiffs attorney is offering a $30,000 settlement as he doesn't have records to isolate the sales of those infringed products. He does have an attorney but seems like he is not working to hard in his favor. If he agrees to this $30,000 settlement how is he supposed to pay it if he has no income as he shut his online store down to avoid any problems? He lives in Illinois and the lawsuit is in New York? Any ideas?

[jk]

well, I guess it's too late to suggest verifying his inventory as legitimate.


Was he sent a cease and desist prior to being sued? Did it include an offer of compromise so they wouldn't sue?

If so, what were his actions to those possibilities?

Oh, and to this:

If he agrees to this $30,000 settlement how is he supposed to pay it if he has no income as he shut his online store down to avoid any problems?

he can always get a job

[KeyWestDan]

Obviously you do not have enough information on the situation for anyone here to give any meaningful assistance.

It is pretty clear there will be no settlement if he doesn't have the money to pay it. If he can't defend himself on the merits, then there will be a judgment against him and the plaintiff will have to worry about collecting it in the coming years.

He needs to research the law. Merely selling merchandise that is a violation of a trademark/copyright is not necessarily a trademark or copyright violation. If he manufactured the merchandise, that is another thing.

If the intellectual property rights are obscure, and not making Gucci bags or something, then there are possible defenses.

It would seem that your friend has really stepped in it.