If someone has accused you of trademark infringement, don’t panic. Trademark disputes are more common than most people think, especially in today’s digital world. According to the World Intellectual Property Organization (WIPO), global trademark filings hit 18.1 million in 2023, and with that growth comes more conflict. So if you’re suddenly facing a cease-and-desist letter, here’s what you need to know — and exactly what to do.

Understand the Accusation

First, read the complaint carefully. Are they claiming your business name, logo, product name, or website is too similar to theirs? Check the details: What trademark are they referring to, and how are they saying you’re violating it? You can usually look up the trademark on the USPTO (United States Patent and Trademark Office) website or the equivalent in your country to confirm if it’s officially registered.

Don’t Ignore It

Act fast. Ignoring a trademark accusation can make things worse. According to a 2023 report from the International Trademark Association, 60% of trademark cases that escalate to lawsuits could have been resolved early with communication. If you wait too long, you could be hit with a lawsuit and face damages, legal fees, or even a court order to stop using your brand entirely.

Gather Evidence

Before you respond, collect everything that shows how and when you started using the name or mark in question. This could include domain registrations, marketing materials, social media posts, business licenses, or product packaging. Evidence matters — especially if you were using your mark before the accuser registered theirs, which may help you claim prior use or challenge their rights.

Look at the “Likelihood of Confusion”

Trademark infringement isn’t just about copying. The main question is: Are customers likely to confuse your brand with theirs? That’s what courts care about. In 2022, over 70% of trademark cases reviewed by federal courts were based on the “likelihood of confusion” standard. If your name or logo looks and sounds similar, serves the same type of customer, and appears in the same market, you could be at risk.

Contact a Trademark Attorney

This is where legal help is crucial. Trademark law can be tricky, and every detail counts. Even if you don’t want to fight in court, a trademark lawyer can help you understand your rights and prepare a smart response. Some lawyers offer flat-fee consultations, and many local bar associations offer low-cost legal aid for small businesses.

Consider Your Options

Settle or Negotiate

You might be able to work out a deal. For example, you could agree to stop using the mark in exchange for avoiding legal action. Sometimes a simple change in your name or design is enough.

Fight Back

If you believe the accusation is wrong, you can respond with a letter explaining why you’re not infringing. Common defenses include fair use, descriptive use, or that your mark is generic.

Rebrand

This may sound extreme, but it’s sometimes the cheapest and safest move. Rebranding early can save you tens of thousands in legal fees. A 2021 survey of small business legal costs found that trademark lawsuits cost an average of $130,000 to defend — even more if you lose.

Be Strategic Moving Forward

Whether you settle or fight, use this moment to rethink your branding strategy. Always conduct a trademark search before launching a new product or business name. In 2024, the USPTO rejected over 25,000 trademark applications due to conflicts with existing marks. A basic clearance search could have prevented most of those. Also, consider registering your own trademarks. This gives you stronger protection and makes it easier to defend your brand.

Learn from Real-World Examples

Here’s a quick case study: A small clothing brand in New York received a cease-and-desist letter from a larger fashion company over a similar name. They chose to rebrand instead of fight. It cost them $5,000 to switch names and update packaging — but it saved them over $80,000 in potential legal fees. A smart pivot at the right time made all the difference.

Final Thoughts

Being accused of trademark infringement is stressful, but it’s not the end of the world. The key is to stay calm, act quickly, and seek legal advice. Most importantly, don’t assume you’re automatically in the wrong. Many trademark claims are overly aggressive or based on weak grounds. But doing nothing is the worst option. With the right information and support, you can handle the situation smartly and protect your business for the long haul.