Learning you have been sued for trademark infringement can cause you to feel panicked, confused and worried about the future of your business. Being sued can lead to significant financial consequences and ruin your professional reputation.
It is important to act quickly to defend yourself when you are accused of trademark infringement.
Understand what trademarks are and how they work
A trademark is a brand that a business uses to signify their good or service. Businesses create trademarks to prevent confusion between their band and others.
The best way to protect a trademark is to register it. Businesses can register trademarks on the federal or state level. When a business registers a trademark, no one else can use it.
When you are accused of trademark infringement, it means someone believes you are illegally using their trademark to promote your own business.
Review the documents you received. Sometimes you will receive an informal notice or a cease-and-desist letter asking you to remove your trademark or face a lawsuit.
A cease-and-desist letter is usually sent before a lawsuit is filed, but not always. Sometimes your first notice of the trademark infringement accusation will come through being served a legal complaint.
Determine how you want to respond
If you were served with a legal complaint, you must file a response within a deadline. It is usually best to file a response to preserve your right to defend, even if you ultimately negotiate a settlement or challenge the lawsuit.
Additionally, you can simply remove the items that are the subject of the infringement accusation. However, this might be seen as admitting fault.
You can challenge the infringement action if you believe that your trademark is not an infringement. There are various factors courts consider when determining trademark infringement has occurred. It is important to review these factors if you decide to defend yourself.
Document everything involved with the trademark infringement accusation. Save copies of all documents you received and take notes about what was said after every phone call or verbal conversation.