Got a Trademark Cease and Desist Letter? Read This First

The letter shows up by email or certified mail, it's on law firm letterhead, and it says your business name infringes someone else's trademark. Stop using it by a certain date, or else.

Take a breath. A cease and desist letter is a demand, not a court order. How you handle the next two weeks can shape whether this ends with a quiet agreement or a federal lawsuit. If you're holding one right now, our trademark practice reviews these letters every week.

What a trademark cease and desist letter actually is

A cease and desist letter is the trademark owner's opening move. It usually does four things:

• Claims rights in a name, logo, or slogan, often pointing to a federal registration
• Accuses you of using something confusingly similar
• Demands action: stop using the name, take down listings, surrender a domain or social handle, destroy inventory
• Sets a deadline, often 10 to 14 days

What it isn't: a lawsuit. No court has decided anything. No judge has ordered you to do anything. Many trademark disputes start and end at this stage, because litigation is expensive for both sides and most owners would rather settle it on paper.

But a letter is also often the step before a lawsuit. Federal trademark infringement claims are brought under the Lanham Act, 15 U.S.C. § 1114, and courts may look at how you responded once you were on notice. Ignoring it is rarely the smart play.

The two worst reactions: panic and silence

People tend to do one of two things with these letters, and both can cost you.

Panic-complying. Some owners rebrand overnight, pull every product, and sign whatever is attached. Sometimes stopping really is the right call. But the sender's letter is written to get the most it can. It may claim broader rights than they actually have, and it may ask for things (payment, your domain, a promise never to use a similar word) that you don't owe.

Ignoring it. The opposite mistake. A missed deadline can push the sender toward filing suit, and continued use after notice can look willful. Willfulness matters: it can affect the damages and attorney's fees a court may award.

The better path sits in the middle. Don't sign anything, don't publicly post the letter, and don't fire back an angry email. Anything you write can end up as an exhibit.

What actually decides whether they have a case

The letter tells their side. Whether the claim holds up usually turns on a handful of questions an attorney will work through with you.

Who used the name first?

In the U.S., trademark rights come from use, not just paperwork. If your business was using its name in commerce before the sender started using theirs, you may have priority, even if they registered first. Dates matter here. Invoices, old social posts, first sales, signage, and archived web pages can all help prove when you started.

This is where Michigan businesses often have more ground than they think. A local business that used a name first in its area can keep common-law rights there, even against a later federal registrant. Federal law recognizes this as a limited-area defense. It covers only the territory where you were already known, which is why the facts of where and when you operated matter so much.

Is their trademark actually valid?

Check what they own. The USPTO trademark search system shows whether a registration is live, what goods and services it covers, and when it was filed. You may find that:

• The registration is dead, abandoned, or was never granted
• It covers goods or services far from what you sell
• The mark is descriptive or widely used by others, which can make it weaker

Some letters cite a Michigan state registration under the Michigan Trademark Act instead of a federal one. A state registration carries weight within Michigan, but it's not the same as nationwide federal rights.

Is confusion actually likely?

Infringement generally requires a likelihood of confusion: would ordinary customers think your business is connected to theirs? Courts weigh factors like how similar the names look and sound, how related the products are, how and where both businesses sell, and whether anyone has actually been confused.

Two businesses can sometimes share a name without a problem. We walk through that in Can Two Businesses Have the Same Name? A bakery and a software company called the same thing may never collide. Two clothing brands selling on the same platforms probably will.

What exactly are they asking for?

Read the demands line by line. Stopping use of a logo is different from giving up a domain, and both are different from paying money. The scope of the ask often shows how strong the sender thinks their case is, and where there may be room to negotiate.

Your realistic options

Once the facts are clear, most responses fall into one of these lanes.

1. Agree to change, on reasonable terms. If their rights are strong and your investment in the name is small, a rebrand may be the cheapest path. You can often negotiate a transition period to sell through inventory and update signage, instead of accepting a 10-day cliff.

2. Negotiate a coexistence agreement. If both businesses can realistically operate side by side, a written agreement can set the boundaries: different markets, different logos, different product lines. These deals can last for decades, so they need to be written with care. The Beatles' Apple Corps and Apple Computer lived under name-sharing agreements for years before the dispute finally ended in 2007.

3. Push back. If you used the name first, their registration is weak, or confusion is unlikely, a firm, well-documented response may end the matter. Sometimes a response explaining your priority is enough for the sender to walk away.

4. Get ahead of it. In some situations, an owner may challenge the sender's registration at the Trademark Trial and Appeal Board, or protect their own position with a filing. That's a strategic call that depends on your facts and your budget.

Whichever lane fits, the response should be deliberate. A short request for more time to review is common, and senders usually grant it.

Common mistakes that make it worse

• Missing the deadline without a word. Even if you need more time, ask for it.
• Admitting things in writing. "We didn't know about you" or "we'll stop soon" can be used later.
• Deleting evidence. Once a dispute is on the table, keep your records, including old posts and sales data. Destroying them can create a far bigger problem than the original claim.
• Filing your own application in a hurry. A rushed application filed in response to a letter can create more trouble than it solves.
• Posting the letter online. Going public can feel satisfying, but it can escalate the dispute and create new issues.
• Assuming your LLC protects the name. It doesn't. Forming a company with the state is not the same as owning a trademark.

If you're on the other side

If someone else is using your name and you're thinking about sending a letter yourself, that's a different conversation. Start with Someone Is Using My Trademark. What Are My Options?

When to call ELN

Call us when a cease and desist letter lands, ideally well before the deadline. We'll review the sender's rights, pull the registration record, look at your dates of use, and tell you plainly which option fits your business and your budget. Sometimes the answer is a short letter back. Sometimes it's a clean rebrand with a sensible timeline. Either way, you'll know where you stand before you sign or send anything.

Holding a letter right now? Schedule a consultation or visit our trademark practice.

You Call You Win.