Digital Product & Template Theft Demand Letters

Templates, Courses, Digital Downloads – Copyright, Contract & Trade Secret Protection

Multi-Theory Protection for Digital Products
📋 Stacked Protections: Digital products (templates, courses, spreadsheets, design files, ebooks) can be protected by multiple overlapping legal theories. Effective demand letters invoke all applicable claims to maximize leverage.
Common Digital Product Types
Product Type Examples Primary Legal Theories
Templates & Design Files Canva templates, resume templates, Notion templates, WordPress themes Copyright (design elements, text), contract (license terms)
Online Courses Video lessons, worksheets, slide decks Copyright (videos, text, visuals), contract, trade secret (proprietary methods)
Software & Code Plugins, scripts, SaaS tools Copyright (source code), contract, trade secret
Spreadsheets & Calculators Excel/Google Sheets templates, financial models Copyright (limited), contract (license restrictions), trade secret (formulas)
Ebooks & PDFs Guides, workbooks, checklists Copyright (text, layout, graphics), contract
Legal Theories You Can Stack

1. Copyright Infringement (17 U.S.C. §§101–122)

  • What's protected: Original expression – text, graphics, videos, photos, layout/arrangement (if sufficiently creative)
  • What's NOT protected: Ideas, concepts, methods, processes, blank forms, purely functional elements
  • Remedies: Statutory damages ($750–$150k per work if timely registered), actual damages + profits, injunction, attorney's fees

2. Breach of Contract / License Violation

  • When it applies: Infringer purchased your product and violated license terms (e.g., "personal use only," "no resale," "single-user license")
  • Proof: Terms of service, checkout flow, license agreement, purchase records
  • Remedies: Contract damages (actual harm), specific performance (cease use), liquidated damages if contract includes them

3. Trade Secret Misappropriation (State Law – e.g., California UTSA)

  • When it applies: Product contains confidential methods, formulas, or processes not generally known; you took reasonable steps to keep secret
  • Example: Proprietary business processes, unique workflows, formulas in spreadsheets
  • Remedies: Injunction, actual damages, unjust enrichment, punitive damages if willful

4. Unfair Competition / Passing Off (State Law & Lanham Act §1125(a))

  • When it applies: Infringer sells your product as their own, creating confusion about source
  • Remedies: Injunction, disgorgement of profits, damages
⚠️ Unprotectable Elements: Courts don't protect purely functional elements, generic design choices, or blank forms with no creative expression. Focus demands on original, creative components and license violations.
Building Your Evidence File
Proving You Created the Product
  • Original files: Project files with creation dates (PSD, INDD, DOCX with metadata, video project files)
  • Version history: Git commits, Google Docs revision history, Dropbox version history
  • Launch evidence: Initial product page, social media announcements with dates
  • Copyright registration: If registered, certificate with effective date
  • Deposit copies: What you submitted to Copyright Office or saved as "master" version
Proving Infringer's Copying
Evidence Type How to Obtain
Purchase/access proof Order records showing they bought your product; login logs; shared-folder access
Infringer's product Purchase their version; screenshot their sales page; download/archive files
Side-by-side comparison Document matching elements: text passages, design layouts, unique features, metadata artifacts
Metadata clues File properties showing your name as author; embed codes; hidden watermarks
Marketplace evidence Screenshots of their Etsy/Gumroad/Teachable listing; customer reviews mentioning similarity
Documenting License Violations

If infringer purchased your product and violated terms:

  • License terms: Screenshot of your product page showing license restrictions at time of purchase
  • Purchase confirmation: Email or receipt showing they agreed to terms
  • Violation evidence: Screenshots showing they're reselling, redistributing, or using beyond license scope
  • Terms of Service: Full ToS or license agreement from your Gumroad, Etsy, Kajabi, etc.
💡 Platform Tools: Gumroad, Etsy, Teachable, and other platforms have IP reporting mechanisms. Use these in parallel with direct demands to infringer.
Common Proof Challenges & Solutions
Challenge Solution
Generic elements in template Focus on unique combinations, specific language, proprietary workflows, creative layout choices
Infringer claims "inspiration" Document verbatim copying, identical structures, minor changes (recoloring, font swaps)
Anonymous infringer Subpoena platform for identity; DMCA notice to platform; domain WHOIS lookup
Offshore infringer Focus on platform takedowns (Etsy, Gumroad, payment processors); harder to sue directly
Drafting Effective Demand Letters
Strategic Approach
  • Lead with strongest theory: If copyright is clear, emphasize statutory damages; if license breach is obvious, emphasize contract violation
  • Stack claims: "Your conduct violates copyright, breaches our license agreement, and constitutes unfair competition"
  • Quantify harm: Lost sales, market confusion, devaluation of your product
  • Offer resolution path: Immediate takedown + payment vs. escalation
Letter Structure
Section Content
Your ownership Product name, creation date, copyright registration (if any), platform (Gumroad, Etsy, etc.)
Infringer's copying Where found (their shop URL, listing), what they copied (specific elements), side-by-side examples
Legal violations Copyright infringement, license breach, trade secret misappropriation, unfair competition – cite statutes
Evidence of access Purchase records, login activity, or striking similarity suggesting copying
Damages calculation Their sales × your price = your lost revenue; OR statutory damages range
Demands Immediate takedown; payment for past sales; destroy all copies; agree not to republish
Deadline 10–14 days; consequences (platform reports, DMCA, federal lawsuit)
Tone & Positioning
  • Professional, not personal: Avoid accusations like "you stole"; stick to "unauthorized copying"
  • Educate: Many digital product sellers don't understand IP law; explain briefly
  • Business resolution: Frame payment as licensing fee for use that already occurred
  • Escalation path: Platform takedown → DMCA → federal lawsuit
⚠️ Don't Overclaim: If your template uses generic design elements or your course teaches publicly available information, don't claim ownership of unprotectable elements. Focus on what you actually own.
Special Considerations by Product Type

Templates (Canva, Notion, etc.):

  • Emphasize unique design choices, specific text/copy, creative arrangements
  • Note that functional elements (blank fields, standard layouts) are not protected
  • Strong license-breach angle if they purchased and resold

Online Courses:

  • Video content, slide design, workbook materials all separately copyrightable
  • If course includes proprietary methods/processes, consider trade secret claims
  • Strong damages case if they're reselling at lower price

Spreadsheets/Calculators:

  • Copyright protection is thin (formulas often not protected; must focus on creative expression in layout, instructions)
  • Stronger breach-of-contract angle
  • Trade secret for truly proprietary formulas with confidentiality measures
Sample Demand Letters
Sample 1: Template Theft (Etsy / Gumroad)
[Your Name / Business] [Address] [Email / Phone] [Date] [Infringer Name / Shop Name] [Address if known, or:] [Etsy Shop URL: etsy.com/shop/InfringerShop] Re: Copyright Infringement and License Violation – [Your Product Name] Dear [Infringer Name or "Etsy Seller"]: I am the creator and copyright owner of "[Your Product Name]," a [description - e.g., "Canva template bundle for social media graphics"], which I have sold on [Gumroad / Etsy / your platform] since [Launch Date]. I have invested [time/money] developing this product, and it has generated [number] sales. On [Discovery Date], I discovered that you are selling a nearly identical product titled "[Their Product Name]" on your Etsy shop at [URL]. A comparison of your product with mine reveals: • Identical layout and design structure; • Verbatim or near-verbatim copying of my instructional text and section headings; • Same color palette, font pairings, and graphic elements; • Identical organizational structure across [number] templates. [If applicable: My records show that you purchased my product on [Date] under the email address [Email] (Order No. [Number]). The license agreement clearly states: "Personal use only. No resale or redistribution permitted."] YOUR CONDUCT VIOLATES MULTIPLE LAWS: 1. Copyright Infringement (17 U.S.C. § 501): You have copied original, creative elements of my copyrighted work without authorization. I am entitled to statutory damages of $750–$30,000 per work (up to $150,000 if willful), plus attorney's fees. 2. Breach of Contract: You purchased my product and violated the express terms prohibiting resale and redistribution, constituting breach of our license agreement. 3. Unfair Competition: You are passing off my creative work as your own, causing consumer confusion and diluting the value of my product. EVIDENCE: I have preserved evidence including: • Side-by-side comparisons showing substantial similarity / verbatim copying; • Your purchase record and acceptance of license terms; • Screenshots of your Etsy listing before you become aware of this letter; • Metadata from files showing my authorship. DEMAND FOR RESOLUTION: To resolve this matter without litigation and platform action, I demand: 1. Immediate removal of the infringing product from Etsy and all other platforms within 48 hours; 2. Payment of $[Amount - e.g., your price × their sales, or $2,500 as licensing fee] representing compensation for sales already made using my work; 3. Written confirmation that you have destroyed all copies and will not republish; 4. Disclosure of total sales and revenue from the infringing product. If you comply within 7 days, I will consider this matter resolved. If I do not receive your response by [Deadline], I will: • File DMCA takedown notices with Etsy and any other platforms; • Report intellectual property infringement to Etsy, Gumroad, and payment processors; • Pursue federal copyright infringement litigation; • Seek statutory damages, your profits, and attorney's fees. Please contact me immediately at [Email] to arrange compliance and payment. Sincerely, [Your Name] Attachments: - Side-by-side comparison document - Your original creation files with timestamps - Purchase/license records (if applicable) - Screenshots of infringing listing
Sample 2: Online Course Theft
[Your Name / Business] [Address] [Email / Phone] [Date] [Infringer Name] [Website / Platform URL] [Address if known] Re: Copyright Infringement – Unauthorized Reproduction of "[Your Course Name]" Dear [Infringer Name]: I am the creator of the online course "[Your Course Name]," available at [YourSite.com / Teachable / Kajabi]. This course includes [number] video lessons, workbooks, slide presentations, and proprietary frameworks that I developed over [timeframe]. I have discovered that you are offering a course titled "[Their Course Name]" that reproduces substantial portions of my copyrighted work without authorization: • Video content: Your lessons [numbers] closely mirror or directly re-record my video scripts from my lessons [numbers]; • Slide design: Your presentation slides are nearly identical in layout, color scheme, and content structure; • Workbooks: Your PDF workbooks contain text and exercises copied verbatim from my materials; • Proprietary framework: You have reproduced my "[Framework Name]" methodology, including terminology, diagrams, and step sequences that I created. This constitutes: 1. Copyright infringement of audiovisual works, literary works, and graphic works (17 U.S.C. § 501); 2. Misappropriation of trade secrets (my proprietary business methods and frameworks not publicly available); 3. Unfair competition and false designation of origin. IMPACT & DAMAGES: Your course is priced at $[Their Price] compared to my $[Your Price], undercutting my market. [If known: You have sold approximately [number] copies, representing $[Amount] in revenue that should have been mine.] Additionally, your unauthorized use damages my brand reputation and devalues my original work. I am entitled to: • Statutory copyright damages of $750–$150,000 per work (videos, workbooks, slides are separate works); • Your profits from course sales; • Injunctive relief prohibiting further sales; • Attorney's fees and costs. DEMAND: 1. Immediate removal of the course from your website and all platforms within 72 hours; 2. Payment of $[Amount - e.g., their revenue OR $10,000–$25,000 settlement] as compensation; 3. Accounting of all sales, customers, and revenue; 4. Permanent cessation of use of my copyrighted materials and proprietary methods. Please respond by [Deadline - 10 days]. Failure to comply will result in federal litigation and pursuit of maximum statutory damages. If you believe you have defenses or want to discuss resolution, contact me at [Email]. Sincerely, [Your Name]
Sample 3: Spreadsheet / Digital Tool Theft
[Your Name / Business] [Address] [Email / Phone] [Date] [Infringer Name] [Address / Website] Re: Infringement of Proprietary Spreadsheet Tool – "[Your Product Name]" Dear [Infringer]: I am the creator of "[Your Product Name]," a [Google Sheets / Excel] tool for [purpose] that I sell via [platform]. This tool includes: • Proprietary formulas and calculation methods; • Unique layout and instructional design; • Custom scripts and automation features; • Detailed user guide with original written content. Your product "[Their Product]" is a direct copy of my work: • Identical formula structure and cell references; • Copied instructional text from my user guide; • Same tab organization and naming conventions; • [If applicable: File metadata shows my name as original author]. While individual formulas may not be copyrightable, the selection, arrangement, and expression in my spreadsheet constitute copyrightable compilation. Additionally, your conduct violates: 1. Copyright in the compilation, text, and creative elements; 2. License agreement prohibiting redistribution (you purchased on [Date] under [Email]); 3. Trade secret protection for my proprietary calculation methodology; 4. Unfair competition. DEMAND: 1. Cease sales of the infringing spreadsheet immediately; 2. Payment of $[Amount] representing [X]× my retail price OR your gross sales; 3. Permanent removal from marketplace. Respond within 10 days or I will pursue platform takedowns, DMCA notices, and litigation. Sincerely, [Your Name]
Platform Enforcement & Escalation
Marketplace Takedown Procedures

Etsy:

  • Report via etsy.com/legal/ip – complete IP infringement form
  • Provide evidence: your original product link, infringer's listing, side-by-side comparison
  • Etsy typically acts within 24–72 hours for clear infringement
  • Repeat infringers risk shop closure

Gumroad:

  • Email help@gumroad.com or use DMCA form
  • Include links, ownership proof, infringement description
  • Gumroad will forward notice to seller; may suspend product pending resolution

Teachable / Kajabi / Thinkific:

  • Each has copyright/IP reporting mechanism (check Help Center)
  • Provide DMCA-compliant notice
  • Platforms generally take down pending counter-notice

Creative Market / Envato:

  • Dedicated IP reporting forms
  • Strong anti-piracy policies; act quickly on valid claims
DMCA Takedown for Hosted Content

If infringer sells via their own website:

  • Send DMCA notice to web host (found via WHOIS lookup)
  • Target payment processor (Stripe, PayPal) – report IP violation
  • Google DMCA for search de-indexing (removes from search results)
💡 Multi-Pronged Approach: Send demand letter to infringer AND file platform reports simultaneously. Infringer is more likely to respond seriously when they see their listing disappearing.
When Platforms Don't Act
  • Appeal / escalate: Most platforms have escalation paths for unresolved IP claims
  • Document non-compliance: May affect platform's DMCA safe harbor if they systematically ignore valid notices
  • Sue platform (rare): If platform knowingly hosts repeat infringers, they may lose §512 protection
Litigation Decision Factors
Factor Favor Litigation Favor Settlement / Platform Action
Infringer's revenue High (makes damages worthwhile) Low (not worth legal costs)
Your registration status Timely registration (statutory damages + fees available) Unregistered (limited to actual damages)
Evidence strength Clear verbatim copying, purchase records Substantial similarity but some differences
Infringer location U.S.-based, identifiable, assets Offshore, anonymous, no assets
⚠️ Cost-Benefit Analysis: Federal copyright litigation costs $100k–$500k through trial. For most digital product disputes, platform takedowns + settlement demands are more cost-effective than litigation unless infringer has substantial revenue or you have timely registration.
Attorney Services for Digital Product Disputes
Someone Copied Your Digital Product?

I represent creators, course makers, and digital product sellers in copyright and licensing disputes. Whether you need demand letters, platform takedowns, or federal litigation, I provide strategic enforcement to protect your work.

For Digital Product Creators
  • Draft cease-and-desist demand letters with stacked legal claims
  • File DMCA takedown notices across platforms
  • Report infringement to Etsy, Gumroad, Teachable, and other marketplaces
  • Negotiate settlements and retroactive licensing fees
  • File federal copyright infringement lawsuits when justified
  • Handle copyright registration for your products
  • Draft enforceable license terms and ToS for your platform
For Accused Infringers
  • Evaluate strength of infringement claims (copyright, license, trade secret)
  • Respond to demand letters and negotiate settlements
  • Challenge invalid copyright claims (unprotectable elements, fair use)
  • Defend platform takedown actions and file counter-notices
  • Defend federal copyright lawsuits
Why Legal Counsel Matters
Maximize Leverage, Minimize Cost: For creators, properly drafted demands citing copyright registration, statutory damages, and license breaches can secure quick settlements. For accused parties, early legal analysis can distinguish legitimate claims from overreach and avoid unnecessary settlements or litigation.
Common Cases I Handle
  • Canva, Notion, and design template theft
  • Online course and video content piracy
  • Spreadsheet and calculator copying
  • Ebook and PDF guide infringement
  • WordPress theme and plugin copying
  • License violations (resale of personal-use products)
  • Platform disputes (Etsy, Gumroad, Teachable takedowns)
Schedule a Call

Book a call to discuss your digital product infringement matter. I'll review the evidence, assess your legal claims, and recommend the most effective enforcement strategy.

Contact Information

Email: owner@terms.law

Frequently Asked Questions
Generally no. Copyright protects original expression, not functional methods or processes. Individual formulas (e.g., "=SUM(A1:A10)") are not protectable. However, the overall compilation, selection, and arrangement of formulas combined with creative elements (layout, instructions, design) can have thin copyright protection. Stronger claims: breach of license (if they purchased and resold) and trade secret (if formulas embody confidential proprietary methods).
Superficial changes don't avoid infringement if the underlying copyrightable elements (text, creative layout, unique organizational structure) are copied. Courts look at "substantial similarity" and "total concept and feel." If an ordinary observer would recognize your work in theirs despite cosmetic changes, infringement likely exists. Focus on the copied elements in your demand: "While you changed colors, you copied my text verbatim, organizational structure, and creative layout choices."
No. Copyright doesn't protect ideas, styles, concepts, or general approaches. If someone creates a similar product in the same niche (e.g., both sell social media templates for coaches), that's not infringement unless they copy specific protectable expression. "Inspired by" is legal; verbatim copying or substantial similarity of specific creative elements is not. Focus enforcement on actual copying, not market competition.
Yes, if possible. You can send a demand without registration, but you can't file a federal lawsuit for U.S. works without registration (or refusal). More importantly, timely registration (before infringement or within 3 months of publication) preserves statutory damages ($750–$150k per work) and attorney's fees – your strongest leverage. File expedited registration ($800 fee, ~1 week processing) when you discover infringement, then send demand referencing registration.