Ebay sales lead to a lawsuit!

[Advice111]

I purchased some products from China and listed them on Ebay and now the manufacturer of that product has sued me through some law firm. They are claiming that the products violate intellectual property rights and the products are counterfeit. I don't understand the basis for their judgement that the products are counterfeit though. They don't have any basis. It seems like they are just guessing and accusing me of that. I later found out though that they really are counterfeit but I have already stopped selling them.

They are asking me how many i've sold so far, how much in sales i've made, my sources/where I purchased them from, the prices I paid for them, the number of items I still have in inventory.

They are also offering to settle the matter with a $5,000 payment due immediately. I'm so confused because I didn't even sell many and 5k is a LOT of money to me as I'm a college student.

Please help!
Person from California.

 

[Michael Wechsler]

What you received is a demand letter and typically you will have a demand for damages that is in excess of what any company would settle for - if they even have a case. It is possible that if you say nothing (and I certainly wouldn't tell them what I have or sold) but state you are stopping selling the item, the problem may go away. My thoughts are (1) I'd like to know the basis which this company claims an IP right, and (b) if I made any settlement at all it would have to be in writing and a final conclusion of the entire matter. If they don't know that you sold any merchandise, I'm not sure they have a basis for making claims. Good luck with this. I don't know all the details of the case...

 

[WorriedMistake]

How much does an attorney cost for such cases?