A trademark cease and desist letter is used to inform a party using a trademark without authorization to stop. It can be used as evidence in court if necessary. Businesses should keep track of all letters to expose repeat infringers.
The term “trademark cease and desist” most commonly refers to a letter directing a party, who is using a company’s trademark without proper authorization, to immediately cease all use of the trademark. Such letters are often drafted by an attorney and are usually sent via a method that requires a signature or other proof that the letter was received by the correct party. The notice is a quick way to inform the offender that the trademark owner is aware of the situation and is often enough to get the offender to stop. However, if further legal action must be taken, the court may issue a cease and desist order. If the offender chooses to ignore this order, he may be fined or otherwise penalized by the court.
Using a trademark without proper authorization is known as trademark infringement and is serious. Companies pay fees, sometimes hefty, to ensure that no one else can use their logos, emblems or other brand imagery without the express permission of the company. A company that allows others to infringe on its trademark rights risks confusing the customer and diluting the strength of its brand. Yet lawsuits can be costly. A trademark termination letter is a convenient way for the business to enforce its rights.
Large companies and those with trademark images susceptible to infringement often ask their attorneys to prepare a standard trademark termination form that contains customizable fields. These letters typically allow the company to enter the recipient’s name, the date of the letter, and the nature, location, and date of the violation. This makes it easy for the firm to send letters as needed, without asking the attorney for a new letter every time a violation occurs.
If the offending party does not respond to a trademark termination letter, the notice itself can be valuable evidence in the resulting court case. It may serve to establish that the party was aware of the infringement and intentionally proceeded to proceed after notification. It can also show that the depository company made a good faith effort to avoid going to court.
Businesses should keep track of all such cease and desist letters, even if the matter is promptly resolved. A party determined to infringe a trademark may cease infringement after receiving a letter, wait a period of time, and then calmly resume the infringing activities. This manipulation can continue indefinitely if the brand owner does not have a tracking system that exposes repeat infringers.
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