Chances are at some point a business might receive a cease and desist letter. Before going into a panic, businesses should be aware of what a cease and desist letter is, what it isn’t, and how to respond appropriately.

Cease and desist letters have two main purposes:

1. Telling someone to stop doing what they are doing and fix the harm they’ve caused
2. Warning of a potential lawsuit

What they aren’t:

1. Legally binding
2. Guarantee of a lawsuit

These letters are essentially the opinion of the attorney representing someone who feels threatened by the actions of another. Also, most businesses try to avoid going through lawsuits, so they send these letters as an attempt to alarm people and notify them to stop what they are doing, without spending extra money.

A cease and desist letter can be sent for many reasons, but the most common are:

• Formally telling someone to stop an action
• Inform the recipient that the sender is feeling harassed
• Notification of a copyright or trademark infringement

In the business world it is frequently a case of copyright or trademark infringement. One person had the idea or product first, and another person tried to use it. Often, the person receiving the letter isn’t aware the violation. A cease and desist is a good way to formally notify a competing business of an infringement on a patent or trademark.

One way to avoid a cease and desist letter is by doing research before starting a business or creating a product to be patented or trademarked. It might already exist, and doing some research beforehand can save a new business a lot of trouble and expense.

However, cease and desist letters aren’t always avoidable. So when should a business take them seriously? Actually, cease and desist letters should always be taken seriously. However, they don’t always have merit. That’s why contacting an attorney right away is the best decision. They can decide how to proceed based on the evidence given in the letter.