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Hi, I recently started selling items on Ebay. Ordered 20 pieces of a product online and listed them on Ebay. After selling 12 items Ebay pulled the auction because they said it violated their verified rights owner agreement. After a while I started getting complaints about the product being defective so I refunded them their money. Today I received a message from a law office stating I am being sued by the manufacture for distributing counterfeit merchandise. They also stated that they will drop the case if it agree to pay the sum of $10,000 and give them all the information regarding the sell of this product including purchaser info and also when I purchased items. What do I do?
State/Country relating to Question: Georgia Already Tried: Nothing yet.
If the merchandise is counterfeit, then you were defrauded by the organization that sold to you, and you can file a third party lawsuit against that organzation for the damages caused by the suit against you. Even if you are not actually sued, you can sue the organization for its misrepresentation of the product's resaleability.
Of course, if you knew that the product was counterfeit, then you're pretty much on your own. However, you could offer to testify against the distributor in exchange for a total or partial release from liability.
Hope this helps.
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I did not know these we counterfeit until I started getting complaints. When I received these in the mail they were posted from china. At the time I didn't know that is the counterfeit capatol of the world. After I started getting complaints I started researching online and determined they were more than likely fakes. Apparently one of the purchasers works undercover for this compant.
Large companies routinely purchase from eBay in order to prevent piracy. From the manufacturer's perspective, you're a pirate until proven otherwise. I don't doubt your veracity, but as it is now, you are likely liable for trademark, trade dress and copyright infringement, as well as unfair/deceptive trade practice. So, if you cannot sue the distributor, then you will be left holding the bag.
One of the very big downsides to dealing with Chinese businesses is that they are immune from U.S. legal action. The only controls that can be exerted is by businesses that have products manufactured in China by the threat of cancelling contracts.
The USA should never have started trading with China, in my view. But, the cat is out of the bag, and there's no going back.
ok thanks so much for your help. Last question, I have not received anything by mail from this office, only 1 email. Is sending these types of notifications by email normal?
NO. Lawyers don't send "cease and desist" notice by email. I'd contact the law firm by finding their contact info from a third party source (website, advertisement, State Bar directory, www.martindale.com), and confirm that this email was legit.
Do me a favor, if you find out that the law firm actually did contact you via email, come back and let me know.
Lawyer
Retired (mostly)