I am no expert on American law, but I am part way through law qualifications here. In my view that letter is bullshit and contains many carefully crafted sentences that have no meaning in law but are designed to terrify those without legal knowledge. As stated "may" has no legal standing and I would interpret it as "definitely do not". As to Rolex "demanding". Well I demand you immediately buy me a Noob V7. I or Rolex can "demand" anything at all, but if we had serious claim we would back the claim up. For example "I demand you send me a Noob V7, unless I am in receipt of said watch by Sept 7th I will initiate immediate court action. I may quote relevant case law. If I was lucky enough to receive such a letter, I would frame it and hang it in my toilet. Under no circumstances would I respond.