Stop what you’re doing! You have a cease and desist letter! What do you do now? Or maybe you want someone else to stop doing something. Will a cease and desist letter help you?
Cease and desist letters have a reputation of being scary, demanding, or troublesome. And while they should never just be ignored, what they mean, and what you should do if you get one, are important to know. Our Chicago business litigation lawyer at Ellis Legal explains more below.
What is a Cease and Desist Letter?
A cease and desist letter is sent when someone believes that someone else is continually engaging in behavior that either hurts them, or which is violating their rights. The letter is not sent by a judge or a court official, but rather, by a private person—usually an attorney, but it can be sent by anyone.
Common uses for sending a cease and desist letter include where somebody is working somewhere, in violation of a noncompete clause or where someone is continually profiting off of someone else’s intellectual property or trade secrets.
Different Kinds of Letters
Cease and desist letters always ask for the behavior to stop beyond that; they differ in what else they ask for.
Some may ask for nothing more than cessation of the behavior, with a threat of future action if the request to stop is not followed.
Others, however, may ask for some measure of payment or damages, with a threat that the demand will be greater or will be enforced in court; these are more akin to demand letters combined with cease and desist requests.
Remember that the cease and desist letter is only one party’s side or version of events—you can and may disagree with it. There is no penalty for disagreeing with it other than the other side carrying out whatever threats may be contained in the letter, such as the initiation of a lawsuit.
What to Do Next
What to do if you receive a cease and desist letter depends on your particular situation.
In some cases, if the letter only asks that behavior stop, you can opt to stop the behavior if doing so is something you’re willing to do. Often, if the behavior is just a minor part of your business, this is the best option—and you do not have to “agree” in writing with the other side in order to opt to voluntarily comply with the cessation request.
But sometimes, what you are doing is a major part of your business operations, and you believe that you are doing it legally. In that case, you may not want to simply comply with the cease and desist letter.
You can send a response to the cease and desist letter (preferably sent by your attorney), giving your position on the matter and explaining why you cannot or will not comply with the cease and desist. You can even propose a solution or resolution if there is one that would be workable and acceptable to both sides.
If you do not respond to the letter at all, you are gambling—if you do nothing, the letter may just be a bluff and the other side may not ever take steps to enforce the cease and desist letter.
Of course, the opposite may be true—do nothing, and you could find yourself embroiled in litigation that could have been avoided had you responded to the letter.
Did you get or do you need, a cease and desist letter? Speak with a Chicago business litigation attorney at Ellis Legal at (312) 967-7629.