Legal Question in Intellectual Property in New York

Re: Cease and desist letter.

One thing lawyers don't do is foretell the future, at least not in any professional capacity. That you think the law firm's demands are outrageous is probably not the best way to start. If they do sue you, someone will likely be paying their bill or they may be on a continuing retainer to enforce Adidas' rights. If it's the latter and you don't comply, they may very well initiate a claim. In my experience cease and desist letters are intended to do exactly what this one did: stop the unlawful commerce. Depending upon how many units you made will likely make the difference. if you've manufactured enough in Adidas' opinion, you may very well hear from them again. If you've made a handful, and you've agreed in writing not to sell the others, you may avoid trouble. The bottom line is that you did something unlawful, you should make the appropriate amends and be done with it but that's just one person's (not necessarily a lawyer's) advice.