Is retailer liable for mfr's infringement?

[lisawoody]

Texas - I'm a retailer in the pet industry. Some of the dog toys I sell look like well-known consumer products. I have never asked those manufacturers whether they acquired permission to use the product name, packaging or brand likeness before manufacturing those toys.

The law firm for a large company has written me two letters saying that I'm infringing on their copyright because one of these lines of toys. They're threatening legal action and triple damages if I don't comply to 8 demands by a certain date. These demands include turning over my records concerning who I bought the toys from, how much I paid, how many I've sold, how much profit I've made, etc. I immediately called the manufacturer. She said they sent her a letter, too.

She said she got permission "from New York, but not from California." It's an older line and she doesn't even make or sell those toys any more. Her lawyer told her it was a form letter and she should ignore it. I took the toys down from the site but I'm worried that the law firm will create enough legal activity to drain my limited resources with legal fees, and put me out of business, even if they don't actually sue me.

If the manufacturer did infringe on the trademark, what is the liability of all the retailers she sold the toys to?

 

[divgradcurl]

Texas - I'm a retailer in the pet industry. Some of the dog toys I sell look like well-known consumer products. I have never asked those manufacturers whether they acquired permission to use the product name, packaging or brand likeness before manufacturing those toys.

The law firm for a large company has written me two letters saying that I'm infringing on their copyright because one of these lines of toys. They're threatening legal action and triple damages if I don't comply to 8 demands by a certain date. These demands include turning over my records concerning who I bought the toys from, how much I paid, how many I've sold, how much profit I've made, etc. I immediately called the manufacturer. She said they sent her a letter, too.

She said she got permission "from New York, but not from California." It's an older line and she doesn't even make or sell those toys any more. Her lawyer told her it was a form letter and she should ignore it. I took the toys down from the site but I'm worried that the law firm will create enough legal activity to drain my limited resources with legal fees, and put me out of business, even if they don't actually sue me.

If the manufacturer did infringe on the trademark, what is the liability of all the retailers she sold the toys to?

You could potentially face liability for either trademark or copyright infringement if you sold infringing goods. If you were unaware that the products were infringing, then you probably don't really have to worry about "triple" damages for willful infringement. You will need to decide how you want to go about handling this -- most likely the copyright or trademark owner is trying to build a case against the toy manufacturer that created the infringing product, so they may not go after you if you cooperate. It's probably worth your while to take the letter and your business records down to a local attorney, who can review all of the facts of your situation and advise you accordingly.