Thanks for all the explanation, ellie!
This is a trademark issue, not a copyright issue. Think about use of the word, COCA COLA. You and your friends can discuss Coca Cola ad nauseam without any problem, because you are not using it "commercially," i.e., to sell something or make yourselves money. Same with Tolkien, the One Ring, Hobbits, etc.
However, when you start using these words to sell something, i.e., a commercial use, that's a problem.
But they aren't commercial - I doubt that they make a big profit out of their mugs and pins.
And LOL, yes that's a scary letter. (But also something that feels like the aforementioned "divine retribution" to me.
)
However, I've heard that companies make them scary on purpose to frighten the receiver into submission - maybe a sign they don't really have much to prove their accusations?
Dunno - maybe the easiest would be for Jonathan and Ted to re-name the site into "fuck-a-certain-author's-estate" or so, and produce some papers saying they never made a profit from the merchandise.
As to the logo looking "similar" - well, that could be a long trial to determine whether it can be mixed up or not, I think.
I have to say, I really am irked by the Estate's bullying a small website that has done nothing but helped them generate profit. I do understand the legal reasoning, I just don't like it.
Don't know about "small" website, but I completely agree!