Before taking legal action against a person or entity, many businesses opt to send a cease and desist letter. These letters serve as a warning that further action may happen if the party’s actions do not stop. Businesses can protect their legal rights without a costly lawsuit by properly using these letters.
The insurance firm Huntersure recommends a cease and desist letter include clear language that outlines the behavior that needs to stop. However, businesses should avoid empty threats or the wrong tone. These could cause a business further problems in the future.
Many businesses use these letters when there is a breach of intellectual property rights including patents, copyrights and trademarks. Slander and libel cause serious harm to a business’s reputation unless they stop. A business that feels that another entity or person is harassing them can send this letter to stop the abuse.
The best way to ensure the person or entity received the letter is to post it as certified mail. The recipient has to sign for the letter. They cannot then state they did not receive it. Unfortunately, some may refuse to accept the letter or the address may be incorrect prompting further legal action.
When done well, a cease and desist letter warns others to stop illegal activity against the business. Failure to stop can result in further legal action, but a warning stops many activities saving the business’s reputation and money.