Patent Infringement and Inducing patent infringement

[helppsu]

Hello,

I am hoping someone can help me out here.

I am an ebay seller, buying items from China and sell it online for a profit. Few days ago, I recevied a documentation stated I violate the patent infringement and a lawsuit has been filed.

The Law office is located in the CA, and it's a lawfirm with 150 employees, and I am a small business owner located in PA. I didn't know that the product is patented, and I only imported less than 50 units to the US, and only sold a handful of units online. It's very inexpensive products - Less than $5-10 sales prices.

I am very nervous right now, because I had never been sued for anything. I don't understand why a company would go after me for selling a handful of units, and I am not sure whether I violate the patent infringement rule as well.

I already responded to the law firm telling me I only imported this many , and sold this much, but the paperwork stated that I must file my answer or motion with the court within 20 days.

My question is - Do I need to hire a lawer to file the respond in court?
Also, How much can the Law Firm suit me for? 100,000 + or 1000+

Please Help the Ebay Seller.

Thanks,
PSU

 

[Michael Wechsler]

1. Don't panic. That's the law firm's job - to scare your pants off into settling quickly, usually in their favor.

2. You may need an attorney and glad to refer as needed. I would first take a look at the letter and do a little research. Do they have a patent? Have they sued anyone before?

3. If you speak to them, just listen. Let them yammer on about how you could be liable for millions of dollars in damages, etc. etc. I'd ask them whether they sued the manufacturer of goods - and probably you want to send an email to your seller notifying them of the issue and whether they could help you understand this situation. I've had clients call me with cease and desist letters that turned out to be nothing more than an overextension of the protection and the matter was disposed of between the inventor and the seller long ago. Sometimes the firm wants to find some local party to hold responsible for infringement since suing a Chinese company would be more difficult than suing someone locally. As I mentioned, the most I'd do is fact finding and discover whether they think you are associated with or are the manufacturer - this could be the case.

Note - I haven't seen the letter or anything else they have sent so what I write is pure speculation and you must do what you feel is appropriate.

 

[helppsu]

Thanks for the respond.

They do have a patent, and I am not sure whether they had sued anyone before.

I had called few law firms, but I am not sure exactly what to do.
Most of the lawers are telling me that there is no reason for them to go after me, because with the amount that they are spending on the lawers fees are most than what they can get from me. That's why I am very confuse.

The question I have now is

1. Do I have to file the respond to court? Or is it something that I can work out directly with the law firm to get out of this case.

2. What would be the different between hiring a lawer in CA instead of middle of nowhere? I interview two different lawyers, while one basically told me he can get me out of the case very easily but they will have to charge me $2000-$5000 to respond, and it might ended up being $10,000. The other is a very small firm in middle of nowhere but they will only charge me $200 per hour.

I am lending toward to the small firm, because I believe this might be something as simply as the lawer presenting the information to the inventor and show them the record of sales to prove to them that there is not much money involved with this case.

any suggestion?

Thanks,
PSU

 

[Michael Wechsler]

It is impossible to answer - I don't know the facts of the case, why the first lawyer thinks he can get the case dismissed so easily or what the specialty of the small law firm is. Right now, I don't know that there is "jurisdiction" or the power to sue you in CA if you are in PA. Some would say that they can go through with the case in CA and, when they try to enforce in PA and collect money, you go to court to challenge that they had the power to go after you.

Where did you sell the 50 units? Was it in CA? Was it mostly other states? That might determine whether the state of CA is the appropriate place or "venue" to sue.