This sounds like a cease and desist letter, and I assume that you were in fact infringing a TM. They cannot get a judgment against you unless they file a lawsuit, and even then they will only get one if they win (or if you do not respond--default judgment). It sounds lke they are seeking treble (triple) damages up front based on your profits, which is probably the most damages they could possibly recover as a result of a lawsuit. I cannot know the merits of your case, but agreeing to pay 3x profits up front to settle would be a very bad deal for you. Unless they have a court order or other discovery order (which requires a lawsuit to be filed) they you do not have to disclose your financial data to them. As long as you followed the standards for a corporate entity (e.g. keeping personal and corporate funas/accounts/expenses separate) then your liability should be limited to the corporation....but other factors may have to be considered. You should definitely talk with a TM litigation attorney to get some direction on how to proceed, they usually offer a free consult.

Edited by Alex Reese on 9/22/2009 at 1:53 AM

Well that appears to be a document filed with that US district court (federal), if it says "complaint" on it then that is the complaint being served on you (i.e. filing of the lawsuit). The complaint is often served on the Defendant at the same time as, or right before filing the complaint with the court. You can certainly find an attorney with lower rates. You should look for a solo practitioner or very small firm, they usually have lower rates than larger firms. One place to search is www.martindale.com, and I can also refer you to some attorneys located in southern california if you like.