This question is extremely common not just from suppliers of items but also from firms who claim the copyright in images on the Internet.
Assuming that these items are fake, you may have a claim against the supplier but if the supplier is in (for example) China, you have little chance of bringing a claim.
In order to bring a successful claim against you the owners of the intellectual property (***** ***** in this case) have to prove loss. Their loss is for the profit they would have made from selling these items and more worryingly, if the items are substandard, any damage to their reputation. This latter is extremely difficult to quantify. They can however try to milk that.
I cannot guarantee that they will not take you to court, but small claims proceedings under £10,000 will not allow them to recover their court costs. Therefore, unless that claim is over £10,000, it’s not particularly economical for them to use solicitors
I would write back (not email) telling them that you no longer intend to sell these items and that (if you have not got any) you no longer have any stock.
There is no harm in giving them the name of the supplier.
There is no harm in telling them how many you bought, how many you sold and what the prices were and how much profit you made provided you have not been making hundreds of thousands of pounds. If you have, that could be problematical for you.
If you sold them on eBay, then eBay will have a list of transactions in your history and PayPal will have the same. So, be careful with that one. They also monitor ebay and look at feedback so be careful in saying anything which isn’t 100% correct
it is up to you but consider sending them, say, £200 ,marking the letter "without prejudice save as to costs" telling them that you offer this in full and final settlement of any claim they have against you and by cashing it they confirm acceptance and if they do not accept it in full and
final settlement, they should return the cheque to you. For legal reasons which I will not bore you with, the cheque must come from a third party, friend, neighbour, wife, partner, solicitor, accountant, but just not from you.
It works nine times out of 10 but obviously there is no guarantee. It is up to you whether you pay anything at all, or simply decide to bluff it to see whether they do issue legal proceedings. If they do issue legal proceedings, and you decide to cough up you will have to pay their legal court issue costs in addition. If they do go to court, they will win and they do have more money I imagine than you do to risk. The only thing which is an unknown factor is how much they would get awarded.
I can’t see you getting away with paying nothing. What you also have to bear in mind is that they are not so much interested in making money from this to get you to hand over your profits but to stop it happening again.
I will tell you that they deal with this all the time, but they will usually cash the cheque provided the amount is reasonable and not derogatory.
Does that answer the question?
Can I answer any specific points arising from this?