CHAPTER 18
Protecting IP Rights: Cease and Desist Letter AT THE FIRST SIGN OF AN INFRINGEMENT,
you might choose to use a “cease and desist letter” to try to stop the suspected illegal activity. This procedure is a common and cost-effective method, and often produces results against individuals and smaller businesses, particularly if they have inadvertently “borrowed” your IP. It involves the sending of a letter such as the following directly to the infringer and demanding that the infringer stop all infringing activities and acknowledge your IP rights. Although sending this letter is an inexpensive first step in fighting infringement, there are times when you may not want to use it. For example, you may have evidence that an infringer has substantial assets and production and holds a prior registration of your IP in another country. You may further discover that the infringer has gained exponential growth in market share, has hidden factories and untraceable suppliers, and has made blatant reference in advertising to your company or country as the source of goods. In such event, you can assume that the infringer knows of your IP rights and the value of your IP rights, and further that the infringer is trading on your reputation. You can further assume that a mere cease and desist letter is unlikely to have much effect against someone who is enjoying a substantial profit, but it is likely to tip off the infringer about your intentions, making it easier to hide the evidence that you will need to fight a successful court case. The strategies involved should be discussed with your legal counsel.
Cease and Desist Letter USE OF FORM
The following letter is written in reference to your company. However, you would be wise to consult legal counsel prior to sending a cease and desist letter. A cease and desist letter that is sent without proper basis could lead to a suit against you for baseless threats made and damage to reputation. Furthermore, a cease and desist letter that comes from your legal counsel is likely to carry the extra weight of “the law” behind it.
158
