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Alex Reese
Alex Reese, Lawyer
Category: Intellectual Property Law
Satisfied Customers: 3425
Experience:  Experienced in intellectual property law
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I received a certified letter from and Pham looking

Customer Question

I received a certified letter from Johnson and Pham looking for a settlement for items I sold on eBay (P90X dvd). I purchased these items from a wholesale website online, but their sales receive says make-up. They sent me these demands saying I was selling counterfeit items and need to send them all the details of my transactions and remaining merchandise. This letter came with a draft complaint as well. I have stopped selling these items and don't have anymore merchandise. Also, their investigator bought one from me and they found out that it was not legit
Submitted: 9 months ago.
Category: Intellectual Property Law
Expert:  Alex Reese replied 9 months ago.

hello.

Customer: replied 9 months ago.
I received a certified letter from Johnson and Pham looking for a settlement for items I sold on eBay (P90X dvd). I purchased these items from a wholesale website online, but their sales receive says make-up. They sent me these demands saying I was selling counterfeit items and need to send them all the details of my transactions and remaining merchandise. This letter came with a draft complaint as well. I have stopped selling these items and don't have anymore merchandise. Also, their investigator bought one from me and they found out that it was not legit
Customer: replied 9 months ago.
The letter is from California and I live in Texas. I responded to their request. I sent them the following letter:February 23, 2016Via Certified U.S. Mail
CARL ENCARNACION
8760A Research BLVD., PMB 118
Austin, TX 78758Re: Beach Body v. Power Trade Direct/ CARL ENCARNACION
Our File No.: 16-BB-1027To Whom It May Concern:First and foremost, I have had no intention on selling any items that are counterfeit or that infringe upon any protected intellectual property rights. I did not know that this goods were counterfeit. I sold the remainder P90X3 last January 31. Since then, I have not sold a single P90X3 and I promise that I will not sell it again. I am willing to act as a fact witness against the company that sold me the merchandise if you so choose.Along with this letter I attached the seller’s information and how I paid for the goods. I also included information on how I was paid.
Expert:  Alex Reese replied 9 months ago.

this is a very common occurrence, it is a volume business for the company and J&P law firm. They will not invest a lot of time/money into trying to get money from you, they want quick money and don't want to file a lawsuit since it is not cost effect unless a lot of sales/damages are involved. In many cases, ignoring these guys has worked for many people, as they often give up. If you want to avoid risk all together you can settle with them, they commonly accept far less than their initial demand. You could offer them your profits and leave it at that.

Expert:  Alex Reese replied 9 months ago.

the chances of them suing you are very low (and that risk changes based on the volume of sales at issue)...for example, they will not sue over a few thousand in sales because their damages will be some portion of that and the cost of filing a lawsuit and proceeding will exceed that

Customer: replied 9 months ago.
in a email, They said that my sales excess $13,000. I told them that I won't response via email and the guy responses was" if your cooperation ends here I do intend to recommend litigation to my client". If they move forward, with the lawsuit, what could be the outcome? Keeping in mind that live in Texas and the lawsuit would be from California
Expert:  Alex Reese replied 9 months ago.

they do a lot of bluffing that's for sure. in order to sue you in CA, they would need to have personal jurisdiction over you there, which requires you to have some presence or conduct business there....they will claim that you sell products into CA and point to their purchase of the item, but arguably that is not good enough (and they know that)...but that issue is something to challenge if you are indeed sued.

Expert:  Alex Reese replied 9 months ago.

But if they sue, you will need to get representation in California....you being in Texas and lack of jurisdiction will not be a barrier to them filing the suit, but it is grounds to challenge the lawsuit.....but if you in fact have sold or selling products to CA customers, or have done any business there, then that will not be a defense

Expert:  Alex Reese replied 9 months ago.

I would avoid giving them information and good to not correspond by email...if you speak to them and want to settle you can offer your profit and other info (e.g. supporting documentation), but no use giving them anything unless they agree to that.

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