What You Need to Know About Receiving a Cease and Desist

What You Need to Know About Receiving a Cease and Desist

Written by GLG Legal

GLG Legal is a leading boutique law firm based in Milton, Brisbane Queensland - Our well-established firm boast a range of high profile clients and has developed a reputation for excellence in service and solutions.

21/12/2021

A cease and desist letter is a legal notice that alleges your practice of unlawful or offensive activity or business. Naturally, it can be distressing to receive this kind of letter since severe legal consequences can follow if you do not comply with the accuser’s demands. These can include legal costs, damages, or the destruction of business assets and materials. If your company experiences this, you may be forced to do a complete rebrand and suffer sales repercussions. 

So what should you do when you receive a cease and desist? First and foremost, you cannot ignore it. You are not required to respond immediately as standard procedures must be followed, but note that this legal situation must be addressed with a sense of urgency on your end. This is because there are cases when the accusing party opts to take immediate legal action after the first demand letter, especially when the issue is intellectual property infringement. 

Continue reading if you are in this situation and need to learn more about cease and desist. 

Infringing Goods and Materials 

As mentioned above, it is quite common for infringement accusers to issue a cease and desist. Note that apart from what the accusing party will demand from you, courts can also order you to pay intellectual property damages that may exceed that of the initial required payment. And a court will look into your previous behaviour when deciding on this. This just means that you can end up paying more if you ignore a cease and desist. 

If you are aware that you are infringing someone else’s intellectual property rights, it is best to immediately comply with the cease and desist. Of course, you should seek reliable legal advice before doing this. Copyright and trademark infringement is a complex legal area. You may not find yourself with a clear conclusion of whether you are infringing or not, which is why you should employ the help of skilled lawyers to guide you in responding correctly and legally. 

In this legal situation, we recommend that you obtain advice from an intellectual property lawyer regarding your next steps. Backtracking after you have completed a specific course of action can be harmful to your case and cost you more. This is why you should wait to consult with a professional before acting or responding to the demand letter. 

Carelessly pulling out your products after an accusation, for example, can be seen as your admission of the liability and severely impact the damages that may be asked of you. 

Responding without Legal Advice

As emphasised above, committing to a position without understanding your rights can have unfortunate consequences. Ideally, you must seek legal assistance as soon as you receive a cease and desist letter. This helps ensure that you are taking the right steps toward a result that is favourable to you. Otherwise, a legal counsel still aims to lower the settlements you will be asked to pay. 

Conclusion 

If you do not want to spend on an amount that is higher than what was initially demanded from you or witness your business experiencing significant losses, hire the help of lawyers who can offer you the proper guidance. They must be able to respond to your needs and efficiently direct your next steps regarding the case. 
If you are in need of corporate lawyers in Milton, turn to GLG Legal. We are an ambitious and innovative commercial and property law practice based in Brisbane that provides clients with real-world solutions to commercial and property needs. Get in touch with us today.

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