Intellectual Property Law
Intellectual Property Law Questions? Ask a Lawyer
hello. sorry to hear this. you should respond by telling them that you do not have that kind of money and that your sales were far less than that amount, in fact your profit was only $XXX....and then for example, you can offer to give them all your profits as settlement, which is a reasonable resolution. in many of these cases, the IP owner does not want the hassle of a lawsuit (and is not willing to file one) and they just want some easy money, so your best bet is probably to negotiate on the settlement amount. once you have an monetary offer on the table, they will be hard pressed to refuse it and file a lawsuit (they may act like it is not enough and threaten to sue, but chances are that is a bluff and they will accept considerably less than $35,000).
yes that is done in many cases, its all up for negotiation
there is no "right" here, it is a negotiation at this point.....you are not obligated to do anything. it might have been a bad idea before getting some assurances from them, but its okay because you would need to give them that info anyway to prove how much you sold and get a settlement
best of luck
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