Help Please!! Intellectual Property Suit

Georgia

I will do my best to summarize this legal mayhem...

I worked at a .com company for 4 years as Art Director. I started there when I was 21 years old. I was really just getting out into my carrer. I made every graphic, animation, ad, brochure, and webpage they ever had. the company never reached profitability and when the investors cut off funding, the company closed its doors and laid everyone off. I received verbal permission from the CEO to use those works i created there on my web based portfolio.

Well, a couple of months later, the owners of the building my previous employer was in, sued them ( the company, CEO,and CFO) for back rent. The company did not respond to the complaint and the owners of the building, who also happen to be a family of Iranian lawyers, were awarded everything in their complaint. Essentially they were given at least $5 million in computer equipment for a measly $28,000 in back rent. After my research on this lawyers, I discovered that is how they came to own the building in the first place, suing and receiving a default judgement. After the suit ended they hired on the former CEO as a consultant. Now they are trying to resurrect the business based on his consulting. Here is where the fun begins.

These lawyers and now new owners of my old employer, have sent almost every former employee letters alledging that we all had some part in the theft of physical property, theft of databases, theft of intellectual property, breach of confidentiality, breach of non-compete, defamation of character, slander and misapropriation of copywrited materials. After reading these crazy letters, and not having done anything they alledged, I ignored them.

Well come to find out they have sued me for $3.1 million because i had some pictures on my web based portfolio. They have also sued 2 other people (editors with video clips on their sites) with the same complaints. We all had disclaimers on our portfolios that clearly state that we did not own these images. They are only examples of our skillset. Needless to say, because I did not know if I had truly broken any laws i took down my site. My friends on the other hand left their up stating that it might look like they were guilty by taking it down. i just don't want any trouble.

In the lawsuit they alledge that I have stolen numerous things, physical property, databases, and intellectual property, which i have not. They alledge I solicited previous clients and defamed them (the new owners), which I have not. They alledge i misappropriated their intellectual property for my own finacial gain, which I have not. My website and the verbage on it were clearly a portfolio, not a business. In their complaint, they printed out every page of my site, except for my clearly marked disclaimer, which clearly explained what the page was about.

This lawsuit also has numerous errors in it. The biggest error being that there is the wrong name and address in the body of the complaint several times. My name is listed on the top of the document as defendant, but in the body it has my friend and ex-co-worker's name several times. In my answer I denied being him in every instance. This leads to my first question. Can this lawsuit be dismissed based on these errors?

Next they claim that i was work for hire and was fired for bad performance. I was never fired nor was i work for hire. I did a great job, hence my 4 year emplyment at this place. I attached in my answer is a copy of the unemployment compensation documents. These outline my approval and reason for dismissal clearly. One of the documents has the CFo's signature on it and the states lack of work as my dismissal reason.

I have asked for them to settle, they sent me an agreement that had 2 things in it that i could not agree too. First, that I was to pay them $2000 for legal fees incurred, and second that "The defendant agrees and admits that the facts in the complaint are true and correct." that to me sounds like a setup for more litigation. I contacted them and explained that I had no money and they would never get any from me. I then asked for them to strike those 2 stipulations from the settlement and I would agree to it and never put anything on my site remotely referencing my previous employer. They removed the $2000 bucks, but wouldn't remove the"agrees to" stipulation. Fearing slimy lawyer tactics i didn't sign it and have submitted my answer to the settlement. I have sent them a settlement of my own, which really is just restating most of theirs, minus the rediculous stipulations. At that time i informed that i hadn't done any of the things they think I have done, and because of this they couldn't prove it in court and that it would be in everyone best interest to just drop this. At this point i still don't have a lawyer.

I think it is a bit funny that they have complained to everyone about these problems. Also its a bit strange that they ask for $3.1 million, then will settle for $2000, then nothing. I really believe they don't have a case against me, and are just trying to scare me away from something.

Here are my questions :

A) Can this lawsuit be dismissed on the name errors?
B) Can I legitimately claim defamation against me because they say I was fired for poor performance? i don't want to sue, I just need leverage.
C) What are ways I can get them to drop this without having a lawyer?
D) What are the chances of this actually going to trial? Them winning?
E) Do they really have a case?
G) Does my use of the images fall under the fair use laws?

Thanks in advance for any help anyone provides!

[divgradcurl]

First of all, if you have been served with a complaint, you need to see a lawyer ASAP -- you don't want another default judgment. If they are just threatening to sue you, you may be able to get out of this without a lawyer. With that said:

A) Can this lawsuit be dismissed on the name errors?

Probably not -- they can always amend the complaint. If you've been served, you need to be talking with a lawyer like yesterday, and he or she can answer this question for you.

B) Can I legitimately claim defamation against me because they say I was fired for poor performance? i don't want to sue, I just need leverage.

Statements made as part of a complaint, motion or hearing cannot be libelous, so no, you cannot sue them for what they say in the complaint.

C) What are ways I can get them to drop this without having a lawyer?

You can try and settle with them, but remember, if you've already been served, then there are strict (and short) time limits for you to respond, so you'll need to act very, very fast.

D) What are the chances of this actually going to trial? Them winning?

If anyone here could tell that, then they would be playing the winning lotto numbers. You're attorney can review ALL of the details and give you a better opinion than we can with the limited info we have.

E) Do they really have a case?

See D above.

G) Does my use of the images fall under the fair use laws?

Almost certainly not. You don't own the copyright to the work, the company did, and these guys apparently acquired the rights to the works when they sued the original company.

Look, you really need to get an attorney here, especially if you want to settle this without leaving yourself open to future lawsuits. A few hundred bucks spent now can save you a lot of hassle in the future.

Oh, and one last thing:

They alledge i misappropriated their intellectual property for my own finacial gain, which I have not. My website and the verbage on it were clearly a portfolio, not a business. In their complaint, they printed out every page of my site, except for my clearly marked disclaimer, which clearly explained what the page was about.

If you are suing their copyrighted works to enhance your business, that can easily be found to be misappropriation. And the disclaimer is worhtless, so it doesn't matter whether they printed itout or not.