Do I need to take this threat seriously?

Beware that this is not an online scam. Next, if the law firm continues to contact you, there is one option where you respond to the letter denying the claim and refusing payment. Or, there is option two, where you can consult an attorney with experience in intellectual property litigation to represent you. Often, such an attorney will draft a response letter for a nominal fee. If you have any further questions, feel free to contact me via the link below or at info@pav-law.com And, as you have recognized, you should be careful to not distribute questionable or pirated media online to avoid future legal issues.

This response is informational only and is not legal advice. Further, this response does not establish an attorney client relationship.

Dear Chicago, IL,

One should take a letter from a law firm seriously. Often times, failure to respond to a demand letter leads to a lawsuit and the resulting headaches, complications, and heavy expenses.

While you may feel that failing to respond will not result in any action, it is often a small chance. If my client were in your position, I would first recommend that he/she look at where the law firm is. For example, if the firm is in California, my hypothetical client would ultimately need someone in California to represent him/her (the client could represent himself/herself if applicable, but not advisable). Simply hiring a local lawyer does not make your representation less expensive. Actually, counter-intuitively, it will likely increase the client's cost of representation. Alternatively, if the Plaintiff is in a foreign state, perhaps initiating a declaratory relief suit in the defendant's state could be tactically advantageous.

I strongly urge you to contact an I.P. attorney who knows the copyright laws and Digital Millennium Copyright Act (DMCA) who can appropriately analyze the circumstances of your case, and advise you accordingly.

Disclaimer: The foregoing does not constitute legal advice, nor does it create an attorney-client relationship.

Yes, you should take this letter from a lawyer seriously. It no doubt demands that you cease and desist sales of the infringing DVDs and that you pay damages within a set period of time. You should hire an IP litigator to review the letter and your facts and prepare a response. You still might get sued, but letting the claimant's lawyer know that you have counsel and defenses to the claims might help you avoid a lawsuit.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.