Cease and desist letter received but not sure what other troubles I can get into.

[panerainovice]

I'm not sure if this is the correct forum section to post this but I hope someone can give me some advice.

A little background of my story:
I worked for a web hosting company a few years ago and after I quit the company, I still continued to use a web host account that I created for myself while I was there. According to the owner, he said that these accounts are open for friends, families, employees, ex-employees of the company to utilize. After I left the company, I still continued to use it. He called me a few weeks after I left and said he noticed some activity on my account and that it was okay to use.

Fast forward 2 years. Last weekend I noticed my account was suspended so I e-mailed him to ask him if I can gain access back to the account so transfer my data off. I understand he has no obligation to let me keep it as I wasn't a paying customer. Last night I received reply from him a cease a desist email. Please see e-mail below.


Mr. Panerainovice,



I have referred this matter to (Company name) legal counsel for action. I must remind you of your continuing obligations under the employment agreement, Non-Disclosure Agreement and Separation agreement you signed with the company.



(Company name) demands that you immediately cease and desist from all unlawful theft of (Company name) services. Immediately cease and desist from contacting (Company name) employees. Immediately cease and desist from using any (Company name) servers, accounts or other access you may have stolen from the company. Immediately cease and desist sharing confidential information, trade secrets and intellectual property belonging to (Company name). Immediately cease and desist from using unauthorized and stolen accounts to compete unfairly and unjustly with the company.



(Company name) demands that you immediately return all stolen confidential information and pay to (Company name) all monies collected and earned through the use of (Company name) stolen accounts.



We demand you immediately confirm your intent to comply with those agreements.



(Company name) reserves all rights and remedies with regard to this matter.


----

It was a pretty harsh cease and desist letter and I was pretty shocked when I received it. I e-mailed him back and told him that I was under the impression that I was allowed to use but if the circumstances has changed, I will stop using it. At this point, hes accusing me of a stealing company intellectual property, using the company's services to make money from, and gaining unauthorized access to his company's accounts.

I'm not sure what else to do right now as I did none of those things and have had access to those accounts for awhile and thought he was okay with it. Now he thinks I'm basically hacking into his server which I had no intentions to do. In addition, hes asking that I pay them money. I never used their account to start a business or make money off of. It was use to host images, host my personal website, and test networking with.

Anyone have any advice on what steps I need to take to protect myself? I've already e-mailed him back and said I would stop accessing his servers.

 

[Michael Wechsler]

I have no idea what really went on and so I'm going to take you at your word. If you didn't take any intellectual property, then this is all huffing and puffing about nothing. My experience tells me that I'm missing a good sized piece of the puzzle. Is the owner of the company tech savvy that he'd even understand what you were doing, e.g. "ex-employees can host their web sites on our servers?" Honestly.... that doesn't quite sound convincing. After all, was this a 10 year appreciation plan for prior employees who spent a couple of months working there? I think you understand where I'm going with this.

 

[panerainovice]

It's quite a small company so a lot of the policy was just coming from the word of the CEO's mouth. After I left the company, he mentioned to me over a conversation on the phone that I can still continue to use my account. I was able to use it for 2 years till today as they have never disabled or suspended the account. The account is also named under my name so they know it belonged to me. Now I'm receiving a C and D with accusations about stealing intellectual property and gaining unauthorized access into their system. I'm missing the puzzle myself. I'm also afraid to contact him to ask if he can explain it as it seems he is pretty mad.

 

[Michael Wechsler]

If I were you I'd settle the case. It will come down to conversation. If you're scared, ask yourself why -- why is this person absolutely in serious contempt of you? Why should they even be mad?