Game Community. Just started making not-for-profit merch. Old leader that left is quoting TM/IP and wanting us to pay.

Question

I and a few others manage a small community on a game called Final Fantasy XIV. It has a community system called "Free Companies," and I have designed, created and paid for merchandise(clothing, bags, small things) for our members to wear. We are not selling them for any profitable gain, we orders only what members have asked for, so I can make name tags to be printed on them too. 
Recently, the founder of the community who left as he was no longer interested, is now pestering leadership for payment on the "trademark" he took out on the name. I have done multiple trademark database searches online for every variation of the group name possible, and have found no existence of it anywhere, except for social media accounts existing that we manage. Stating that he would take action if we're seen to have any items with the logo on without his permission or payment to pass the TM contract over. But no proof he has ownership. 
Is this legal? Are there any other ways to search?

Griffin Klema · Answer

This is an interesting question. Presumably the "trademark" is something other than the logo or name pertaining to the game itself (since those rights are probably owned by the game maker), and I further assume your group has created its own name or logo. Trademark rights are based on use, and no registration is necessary to acquire those rights. The issue in your situation probably depends on how your community is organized. Has it been formally incorporated as a nonprofit business anywhere? Whose name appears on the orders placed with the merchandise manufacturers? 
 
Really you probably need a deeper dive analysis from a trademark lawyer to fully answer the question. Good luck!

Q: Game Community. Just started making not-for-profit merch. Old leader that left is quoting TM/IP and wanting us to pay.