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Protect Your Business: Identifying and Avoiding Trademark Scams

trademark scams

Trademark scams are becoming increasingly common, targeting business owners and intellectual property (IP) holders with alarming emails and fraudulent demands. These scams attempt to exploit your fear of losing your trademark rights by pressuring you to act immediately, often asking for money or sensitive information. If you’ve received such a message, it’s crucial to understand the warning signs and take the necessary steps to protect yourself. 

 

What is a Trademark Scam? 

Trademark scams involve fake correspondence sent to trademark holders, often appearing official and referencing legitimate-sounding organizations. These emails might claim your trademark is under threat, that someone else is trying to register it, or that legal consequences will follow if you don’t act immediately.

These scams are designed to create panic and convince recipients to pay fees or share personal information. The College of Patent Agents & Trademark Agents (CPATA) notes that several iterations of these scams have been brought to their attention. You can check out their article here.  

 

How to Recognize a Trademark Scam 

Fraudulent emails often share common characteristics. Watch out for the following red flags… 

  • Unknown Senders: Scammers use generic or fake business names like “Trademark Protectors” or “Trademark Guardians.” 
  • Urgent Tone: The emails emphasize immediate action, often warning of severe consequences if you don’t respond quickly. 
  • Personalized Information: Scammers may include your name, business name, or trademark details — this does not mean they are legitimate. This information can be accessed via public databases. 
  • Threats of Financial or Legal Repercussions: Claims of lawsuits, registration losses, or high financial penalties are intended to coerce you into compliance.  

 

Common Tactics Used in These Scams 

The Canadian Intellectual Property Office (CIPO) has issued warnings of scam mail and emails impersonating them and targeting owners of patents or trademarks. You can see their announcement here. 

CIPO scam notices often indicate that your patent or trademark protection will soon be expiring, and request that you renew registration and pay associated fees. Those fees are often higher than standard CIPO fees. The CIPO does have a public list of fees where you can verify this information. 

Other scams will ask that patent and trademark holders pay a fee to “register”, “maintain” or “list” your trademark or patent on a “register”. This register, however, is not government-owned but rather a listing on a third party or private register that conveys no legal rights.  They often do this by sending an official-looking invoice. 

All IP related payments should be made via your trademark or patent agent/lawyer. Third parties will not be approaching you with legitamite invoices for you to pay. 

 

Scam Email Examples 

CPATA has also shared examples of scam emails that IP holders have encountered. Here is some of the language that CPATA has flagged:  

  • “I am writing to urgently address a potential trademark infringement issue concerning your business name, “XXX”. We have received a request from another party to file a trademark registration application for the same name with the CIPO (Canadian Intellectual Property Office), despite your long-standing use of it.”  
  • “This communication serves as a final notice regarding a critical issue concerning your business name “XXXXX” has come to our attention that an applicant has initiated the process for trademark registration of the same name. Time is of the essence as more than 24 hours have passed since their application. “ 
  • “Please understand that once the applicant’s classes are paid for with CIPO, our ability to intervene effectively will be limited. It’s important to act swiftly to avoid complications that could jeopardize your ownership rights.” 
  • “It’s also essential to note that failure to protect your trademark could lead to severe consequences, including injunctions, cease-and-desist orders, and potential litigation costs ranging from $120,000 to $750,000, depending on the complexity of the case. “ 
  • “Your prompt attention to this matter is vital.” 

 

Steps to Protect Yourself 

If you suspect you’re being targeted by a trademark scam, follow these steps: 

  • Don’t Rush: Scammers rely on creating a sense of urgency. Take time to carefully review the email or letter. 
  • Verify the Sender: Cross-check the name or business with credible resources, such as CPATA’s Public Register or your local trademark office. Fraudsters often use fake or unregistered names. 
  • Avoid Clicking Links: Scam emails may include malicious links. Do not click on any links or download attachments. 
  • Contact Your Trademark Agent: If you’re unsure about the legitimacy of the communication, reach out to your trademark agent or a lawyer for guidance. They can help confirm whether the correspondence is genuine. 

Organizations like CPATA and CIPO are aware of these scams and are circulating materials to help trademark and patent owners protect themselves. As fraudsters become savvier in their deception tactics, it is important to remain up to date with prevalent scams and means of protecting yourself and your information.  

Caravel Law has over 100 lawyers, including IP specialists who are available to help you. Get in touch with us today to learn more!  

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