The Effectiveness of Cease and Desist Letters in Stopping Infringement
Introduction
Cease and desist letters have long been a tool in legal battles, often employed to halt alleged infringements. However, their effectiveness can vary greatly depending on the context and the party involved. In this article, we explore different scenarios and factors that influence the outcome of cease and desist letters in legal disputes, including debt collection, business entities, and the necessity of professional legal review.
Debt Collection andCease and Desist Letters
When it comes to debt collection, cease and desist letters can be a powerful tool. It is essential to send these letters via Registered Mail, as the recipient must sign for them. Debt collectors are generally aware of the legal consequences of disregarding a cease and desist letter, as it violates state and federal debt collection laws. Failing to comply can lead to legal action, including a lawsuit.
In contrast, business entities may not take cease and desist letters as seriously until a process server delivers a copy of the infringement lawsuit directly to their door. The threat of legal action often serves as a more effective deterrent.
The Role of Professional Review
Not all cease and desist letters are created equal. Some can be legitimate, while others may be frivolous. Regardless of their origin, it is crucial to have these letters reviewed by competent legal counsel. In cases involving patent infringement, this review must be by a licensed patent attorney, not a patent agent or a general intellectual property (IP) attorney. A verbal opinion can be offered, followed by a written opinion if necessary.
A verbal opinion is preferred in many cases because a negative noninfringement opinion can be detrimental if the case goes to court. A negative opinion may be used to prove willful infringement, which can have severe legal consequences. On the other hand, a written opinion backing up the noninfringement of a product can be advantageous in court.
Case Study: The Mail Order Company
Over 30 years ago, I was involved in a case that highlights the importance of thorough review of cease and desist letters. My client was a well-known mail-order company. A colleague had been reviewing cease and desist letters for years, which was a smart practice. However, the company later became cheap and stopped reviewing these letters.
One of the letters they had ignored turned out to be legitimate. Failing to address this issue led to a patent infringement lawsuit. The case eventually settled, but not before the legal firm had incurred significant costs for reviewing the letters.
This case underscores the importance of professional legal review. Ignoring even one potentially legitimate cease and desist letter can lead to costly legal battles. Therefore, having these letters reviewed by a licensed patent attorney is essential to protect your interests.
Conclusion
Cease and desist letters can be highly effective in stopping infringement, but their success depends on the right approach and professional guidance. Whether dealing with debt collection, business entities, or patent infringement, it is crucial to take these letters seriously and seek expert legal counsel. A proactive and informed approach can help mitigate risks and protect your legal standing.