What to Do When You Receive a Cease-and-Desist Letter

A demand letter is alarming, but it is not a verdict. Here's how to respond calmly and protect your position.

Few things rattle a business owner like a cease-and-desist letter alleging IP infringement. The instinct is either to panic and comply immediately, or to fire back in anger. Both can be mistakes. A measured response protects your position far better.

Don't Ignore It — and Don't Overreact

Ignoring a legitimate demand can escalate matters and, in some cases, increase your exposure. But a demand letter is an assertion, not a judgment. Many letters overstate the strength of the sender's rights. The first step is to assess, not to react.

Preserve Everything and Say Little

Avoid responding substantively before you understand your position. Preserve relevant documents and communications. Do not admit liability or make changes that could be read as an admission until you have advice. Anything you say may shape the dispute that follows.

Assess the Real Risk

We examine whether the asserted right is valid and enforceable, whether your activity actually infringes, and what defences may apply. Often the sender's rights are narrower than claimed, or your use falls outside their scope. Sometimes the strongest response is a confident letter explaining why there is no infringement.

Choose a Strategy

Depending on the assessment, options range from a reasoned rebuttal, to negotiating a licence or coexistence arrangement, to a modest design-around, to preparing a defence. The goal is always the same: resolve the matter on the best possible terms, with the least disruption to your business.

By Motif Intellectual Property — Motif Insights