There has recently been a rise in scams relating to intellectual property rights where businesses are being targeted by fake intellectual property firms or trade mark attorneys.
What is happening?
Fake firms and trade mark attorneys (agents), often from overseas, are targeting businesses and attempting to use scare tactics to coerce businesses into paying money to the scammer to file trade mark applications on their behalf.
The most common example is an agent contacting a business via email and advising them that there is another party that has engaged the agent to lodge a trade mark application on their behalf. However, the agent has seen that the targeted business has a history of use of the mark and is giving the business the opportunity to register the trade mark first by engaging the agent directly.
The agent will then go on to say that if the business doesn’t register their trade mark and the other party instead registers it, severe consequences could follow, such as cease and desist orders, significant rebranding costs or other legal action.
The scam is a scare tactic designed to make businesses act quickly to protect themselves, resulting in the scammer receiving fast money from the business and the business with no actual trade mark protection.
Watch out for the red flags
In the first instance, the emails can be quite convincing. The agent appears to know about the business and seem genuinely concerned at protecting your business’ rights.
You should be hesitant to act on any email where it comes from a business or person you don’t know, or if the email requires you to act urgently. If you do receive any correspondence that requires you to act urgently, it is more than likely not legitimate.
Our tips: What to do if you receive an email about your trade marks
If you are concerned or unsure about an email you receive:
- Do not respond;
- If an agent purports to be a trade mark attorney, verify that they are a registered attorney with the Trans-Tasman IP Attorneys Board;
- If the agent purports to be a law firm, do some independent research about the firm and the person that the email has come from;
- Reach out to your trusted intellectual property advisor to discuss how you can best protect your brand.
If you have any questions about trade mark registration or would like to understand how you can better protect your brand, our Commercial Team can help.
