This IP First Response website has been designed to help IP rights holders navigate IP infringement and enforcement by making it visible, accessible, and to provide information about the factors involved in pursuing different options. It does not provide legal, business or other professional advice, and none of the content should be regarded as recommending a specific course of action. We welcome any feedback via our IP First Response feedback form and by emailing us.
What is it?
A letter of demand, or a cease and desist letter, can be an effective way of stopping infringing behaviour and avoiding the need for legal action. You can use this letter to communicate your concerns and demands. It’s often one of the first actions taken if you are satisfied that an infringement is occurring.
An effective letter of demand will:
- identify your ownership of the IP right and whether you are entitled to make requests to cease infringement
- document the infringing conduct, with written examples if possible
- specify the legislation under which your IP is being protected
- give a specific timeframe for the infringer to stop infringing, return all infringing property to you
- state that if the demands aren't met, you may take further actions to stop the infringing behaviour.
Before sending a letter of demand, it’s a good idea to consider whether the other party’s actions amount to infringement. There can be serious consequences if you send a letter of demand with no basis. You might be liable to pay compensation or damages under ‘unjustified threat’ provisions.
For more information about what constitutes an infringement, see our information on what infringement can look like. An IP professional can help you make this assessment and draft the letter.
Please note: Conducting informal contact before consulting with an IP professional can result in detrimental outcomes for you and your IP right. Please consider carefully if you want to undertake this action and are fully aware of the risks involved.
What are the benefits?
- Often cost-effective.
- Quick to action.
- Simple to prepare and initiate compared to other enforcement options.
- Reasonable likelihood of stopping infringing behaviour without the need for additional steps – 43.7% of respondents, who are patent holders, found it effective at stopping copying behaviour (Weatherall K and Webster E (2010) ‘Patent infringement in Australia: Results from a survey’, Federal Law Review, 38, 21-70, 40).
- Allows you to consider many options to escalate, if suspected infringement continues.
What are the risks?
- Making an unfounded claim of IP infringement is legally prohibited and may result in liability for damages.
- Including unreasonably onerous and aggressive terms in your letter (such as short time frames, demands that do not relate to the IP in question, etc) may prompt the other party to escalate and resist, rather than comply.
- Exposing yourself to the other party by contacting them might prompt the other party to take actions against you, escalating the conflict in an unwanted way. This could jeopardise your own IP rights, including registered IP.
- For trade marks, it might also prompt the other party to apply for their own trade mark, which may then need to be opposed.
- Sending a letter of demand might give the suspected infringer time to hide or destroy evidence. This could harm your case in future legal actions. If you are worried about this possibility, you could consider escalating the conflict to more formal enforcement options.
What are the possible outcomes?
Sending a letter of demand can result in a wide range of different outcomes depending on the specific circumstances.
Some possible outcomes are:
- The alleged infringing behaviour stops upon receipt of the letter, especially if the recipient was simply unaware of existing IP rights.
- The alleged infringer does not change their behaviour, in which case you may have to consider other enforcement options.
- Parties can engage in further correspondence disputing part or all of your claims.
- The conflict can further escalate into more serious, formal dispute settlement procedures (i.e. litigation, arbitration, administrative hearings, etc.).
- The other party may not fulfill all the requirements but may be willing to participate in some form of negotiation.
- The other party may commence proceedings challenging the validity of the IP right, or be prompted to take legal action against you (for instance if they are of the opinion that you are infringing on their rights). This could include seeking damages or compensation for unjustified threats.
What might the costs be?
If you engage an IP professional to give you legal advice or draft a letter for you, fees will be incurred for their service.
Fees for IP professionals vary depending on the complexity of the issues at hand and which type of IP professional you engage. Fees for a legal professional to draft a letter of demand generally sit between:
- For trade marks,: $1,500 to $5,000
- For patents: $1,500 to $10,000
There can also be some administrative fees involved in drafting, printing and posting the letter of demand.
How much time might be involved?
Sending a letter of demand is generally considered to be a quick and simple enforcement option.
The amount of time required for sending a letter of demand will vary depending on the complexity of the infringement and whether you choose to engage an IP professional to act on your behalf.
It is up to you to determine how much time the other party can take to comply with your demands laid out in the letter. It's common to request action is taken within a short period such as '10 business days'.
Who can use this?
Someone who owns IP or is an authorised user, and can provide evidence of their rights.
Who’s involved?
- IP right owner/s or authorised users of IP.
- Alleged infringer(s).
- (Optional) IP professionals acting on parties’ behalf.
What do you need to proceed?
Understanding what constitutes IP infringement, and possible consequences of contacting a suspected infringer, can help you decide if this is the right option for you.
It's important to get all the factual details right and evaluate the merits of your claims before you send out a letter of demand, to give yourself the best chance of success. Making unjustified claims of IP infringement can have serious consequences. If you are found to have made an unjustified threat, you might be liable to pay damages or compensate the other party.
Here are some things you might wish to check and consider before drafting your letter:
- The status and details of the relevant IP in the jurisdiction where infringement occurred. This includes checking the status of your IP registrations, and whether the alleged infringer has registered IP rights with IP Australia or overseas IP offices.
- Whether the other party’s conduct amounts to infringement, having regard to what infringement looks like, to avoid making unjust threats. For registered IP, it's worth considering the 'scope of protection' of your registered claim. For trade marks, this includes the goods or services attached to your registration, and whether the other party is offering similar goods and services. For patents, it includes whether the product or process contains all the essential features of a claim in a granted patent.
- The identity and contact details of the suspected infringer. It’s important to send the letter to the correct party. You might wish to consider sending correspondence by registered mail, and keeping records to show that a letter was sent to a specific address on a particular date.
Before taking this action, it might also be helpful to consider your goals and potential outcomes, including:
- Whether there any other less confrontational and more informal ways to contact the other party before sending out the letter.
- Options for outcomes that would benefit or be agreeable to everyone involved.
- Whether you will be prepared to be engaged in further correspondence, negotiation or even disputes with the other party. If you threaten to do something and do not follow through, it could be found to be an unjustified threat.
Consider contacting an IP professional for advice and assistance
It can be difficult to determine whether the other party’s behaviour amounts to infringement. An IP professional can help you make this assessment and advise what steps would work best in your situation.
Please note: Making informal contact before consulting with an IP professional can result in detrimental outcomes for you and your IP right. Please consider carefully if you want to undertake this action and are fully aware of the risks involved. If unsure, please consult an IP professional.
See also
- What To Consider Before Taking Legal Action | IP Australia
- Someone Is Using My IP | IP Australia
- Advanced Trade Marks: Enforcement | IP Australia
- Find an IP attorney or firm | Trans-Tasman IP Attorneys Board
Exercise caution before making accusations of infringement
Making an unfounded claim of IP infringement can result in liability for damages. Proving infringement is an important issue that should be considered before taking legal action, including sending written demands.
Before you take any action, you should consider whether you need legal or professional advice specific to your situation. It is important to know what rights you have, what remedies are open to you, and the cost and likelihood of success. IP Australia provides information on getting professional assistance with your IP. In addition, the Institute of Patent and Trade Mark Attorneys Australia (IPTA) offers free 30 minute consultations with an attorney.