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Trademark Extortion Time Analysis

Any business can get a reasonably proficient individual for say $20,000 a year. Toss in extra taxes and benfits, and let's make the cost to a company at about $30,000 a year. That's a mere $600 a week or $120 a day. To most companies this is a cost of doing business. Not for extortionists. Any reasonably proficient individual can locate any number of infringing auctions and/or offered sales on the internet when they are told to count almost everything they see, as we suspect they are told. But, for the sake of reasonable argument let's say they can locate ONLY one auction and/or offered sale a day that qualifies. So, the actual cost, assuming this reasonably proficient individual can ONLY find one a day, is a mere $120 per infringing letter. This is assuming they are on salary only. It's more likely they get incentives so the cost would be lower. Yet, these letters routinely demand thousands of dollars for the alleged infractions. Most want at least forty times the assumed maximum cost as we have shown it. Why do they demand so much? Mo' money, mo' money, mo' money. It is reasonable to guess they are getting a percentage of the take after they remit the vig to the house, er, client. That's got to be the selling point to the clients. A company trolls the internet looking for infringement and no cost to them; they only get paid when they locate infringers and make them pay. So, what is their percentage? They will deny such an agreemnt but we think they lie. It's probably a 75 - 25 split with the extortionist getting the most and the house getting a cool 25% for doing nothing but lending their name to the scam.

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