Legal Question in Business Law in California

There are really two strategic questions to be answered. The first is whether the business owner would file and prosecute a lawsuit. The second is whether he is likely to win and be awarded a significant sum of damages.

I'll start out by saying that I cannot give you odds on either question being answered in the affirmative without a lot more information.

Generally speaking, prosecution of a trademark suit is pretty expensive, for both plaintiff and defendant, and to some extent whether you win or lose. Nothing in your question raises the likelihood that this business owner has suffered or could argue that he suffered substantial losses, whether or not you were at fault. All of this suggests that you are being harassed or coerced into a settlement. Nevertheless, this is only a likely scenario, and by no means a certainty. If by chance you are sued, seek further legal advice immediately.