A Competitor Is Selling Knockoffs of My Product — What Are My Options in California?

A competitor is selling knockoffs of your product. Learn your legal options in California and why a cease and desist letter is the fastest, cheapest first step.

You built your product line from scratch — the design, the branding, maybe a trademark or copyright. Then you search a marketplace and find an almost-identical item being sold by someone else at a lower price. It is infuriating. It is probably hurting your sales. And it may well be illegal.

Here is the short answer: in California, selling knockoffs that infringe on a registered trademark, copyright, or trade dress is unlawful under both federal and California law. Your most practical first step — before spending thousands on litigation — is a formal cease and desist or IP infringement letter.

How to Tell Whether It Is Actually Infringement

Not every "similar" product is legally infringing. Courts look at specific factors:

If any of these apply, you likely have a legal basis to demand the seller stop.

Your Legal Options, Ranked by Cost and Speed

  1. IP infringement letter (cease and desist) — A formal demand letter from a licensed California attorney. Low cost, fast to send, and resolves a significant share of disputes before legal fees escalate. Many sellers comply immediately to avoid litigation exposure.
  2. Platform complaint — Amazon Brand Registry, Etsy IP policy, and eBay's VeRO program all accept IP complaints and can remove infringing listings. This works in parallel with a letter, not instead of one.
  3. California state court or federal district court — If the letter is ignored, you can file in state court for smaller disputes or federal court for trademark and copyright claims. Litigation is expensive and slow, but the letter creates the paper trail that helps you there.
  4. Small claims court — If your damages are under $12,500 (California's current limit), small claims can be a viable option for simpler disputes without attorney representation.

Why a Cease and Desist Letter Is Usually the Right First Move

A well-drafted IP infringement letter accomplishes several things at once. It formally notifies the other party that you are aware of the infringement — which matters for proving "willful" infringement and unlocking enhanced damages if litigation follows. It creates a documented record. And it signals that ignoring you will lead to escalation.

Critically, many sellers — especially small operators and dropshippers — will stop immediately when they receive a professional attorney letter. They do not want legal exposure. A letter from an attorney signals you are serious in a way that an informal email simply does not.

What Happens If They Ignore the Letter?

If the seller ignores a properly documented cease and desist letter, you have several options: file a platform complaint if you have not already, send a second demand with an explicit litigation timeline, or proceed to file in court. The letter itself becomes evidence of your good-faith attempt to resolve the matter — which courts look on favorably.

One practical note: if the seller is overseas, enforcement is harder. A letter may still prompt compliance, but pursuing foreign sellers often requires additional steps. A California-licensed attorney can advise on jurisdiction-specific strategy.

When a letter is the right tool, the best next step is to make sure it is drafted and signed by a licensed California attorney so it carries the weight it needs.

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Your first letter from Talk to My Lawyer is free — get started at talk-to-my-lawyer.com.

This article is general information, not legal advice. For advice on your specific situation, consult a licensed attorney.