Beware of Trademark Scams! Small business owners are increasingly being targeted by sophisticated scams involving trademark-related threats and false claims. These scams typically arrive via email or text message, creating unnecessary panic and attempting to extract money from unsuspecting business owners. Here’s what you need to know to protect yourself and your business.
Common Trademark Scam Tactics
Here are real examples of fraudulent messages businesses have received:
“URGENT NOTICE: Our records indicate that [Company Name] is applying to register ‘[Your Business Name]’ as their trademark and domain name. As your company’s original name is currently available for registration in [Country], we are sending you this notification. If you fail to respond within 7 working days, we will approve the registration.”
“FINAL REMINDER – Protect your trademark rights now! We’ve detected an application that conflicts with your business identity. Another entity is attempting to register your brand name ‘[Your Business Name]’ across multiple categories. Immediate action required within 48 hours to prevent unauthorized use.”
“Dear Business Owner, This is a notification from International Trademark Registry. Your exclusive rights to ‘[Your Business Name]’ trademark are expiring. Renewal fee of $2,500 required within 24 hours to maintain protection. Wire transfer details attached.”
These types of messages use several convincing techniques to appear legitimate:
They may claim that another business is attempting to register your business name, brand, or trademark in another country or domain. The message usually creates urgency, stating you have a limited time to “protect your rights.”
The scammer might pose as a government agency or official-sounding organization, using names that seem legitimate at first glance. They often include official-looking logos and reference real trademark laws to appear credible.
These messages frequently demand immediate payment for “trademark protection services” or “registration fees” to prevent the supposed unauthorized use of your business name.
Examples of Text Message Scams
Scammers are increasingly using SMS messages to target business owners. Here are examples of fraudulent text messages:
“TRADEMARK ALERT: Your business name ‘[Your Business Name]’ is being registered by another company in 48 hours. Reply YES to stop this process. Registration protection fee: $899”
“Notice from US Business Registry: ‘[Your Business Name]’ trademark status at risk. Immediate verification required. Click link to prevent suspension: [Suspicious URL]”
“TRADEMARK INFRINGEMENT WARNING: We represent [Made-up Company]. Your use of ‘[Your Business Name]’ violates our client’s rights. Reply to avoid legal action. Settlement offer expires in 24h.”
Red Flags to Watch For
Legitimate trademark communications will never:
- Demand immediate payment via unusual methods like wire transfer or gift cards
- Come from email addresses that don’t match official government domains
- Contain numerous spelling or grammatical errors
- Create extreme urgency with threats about losing your business name
- Request sensitive business or personal information via email or text
How to Protect Your Business
- Verify All Trademark Communications Always independently verify any trademark-related messages. In the United States, official trademark communications come from the USPTO (United States Patent and Trademark Office) through official channels. Visit the USPTO website directly rather than clicking links in suspicious emails.
- Maintain Proper Trademark Registration Properly register your trademarks through official channels and keep detailed records of your registrations. This makes it easier to verify whether incoming communications are legitimate.
- Educate Your Team Make sure everyone in your organization who handles communications is aware of these scams and knows the proper procedures for verifying trademark-related messages.
What to Do If You Receive a Suspicious Message
If you receive a suspicious trademark-related message:
- Do not respond or click any links
- Forward the email to the FBI’s Internet Crime Complaint Center (IC3)
- Report the message to the Federal Trade Commission (FTC)
- Document everything in case you need to file a report
- Consult with a qualified intellectual property attorney if you have concerns
- Contact an Attorney
Stay Informed and Vigilant
Trademark scams continue to evolve, becoming more sophisticated and convincing. Stay informed about current scam tactics by regularly checking resources like:
- The USPTO’s scam alert page
- Your local Better Business Bureau
- Small business administration websites
- Professional trade organizations in your industry
Remember, legitimate trademark processes take time and follow established legal procedures. Any message creating artificial urgency or demanding immediate payment should be treated with extreme skepticism.
Conclusion
While these scams can be frightening, staying informed and following proper verification procedures will help protect your business. When in doubt, consult with a qualified intellectual property attorney who can help verify legitimate trademark concerns and guide you through proper protection procedures.
