When facing intellectual property (IP) infringement, enterprises must act swiftly to minimize losses and safeguard rights. This article details emergency measures like sending cease-and-desist letters, applying for temporary injunctions, and strategies for loss assessment and response formulation.
Time is critical upon discovering IP infringement. Enterprises should promptly implement emergency measures to prevent escalation:
Before taking action, enterprises must verify infringement by collecting evidence (e.g., photos of infringing products, sales records, website screenshots) and conducting preliminary analysis to assess the nature and severity.
Case Study: Confirming Infringement
A tech company found a product highly similar to its patented item in the market. It assembled technical and legal teams to compare specifications and appearances, confirming patent infringement. Sales records and promotional materials were collected to support legal action.
Upon confirming infringement, promptly send a legal letter demanding the infringer to stop unlawful acts. The letter serves as a warning and formal communication to prompt resolution.
Content of a Cease-and-Desist Letter
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Clearly state infringement facts, including descriptions of infringing products/services and the nature of violations.
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Cite relevant laws and regulations to illustrate illegality.
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Demand immediate cessation of infringement and measures to eliminate impacts.
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Propose reasonable compensation claims, including economic losses and reasonable costs.
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Warn of further legal action if the infringement persists.
Case Study: Effectiveness of Cease-and-Desist Letters
A fashion brand discovered unauthorized trademark use by an e-commerce seller. After sending a legal letter, the seller removed infringing products and negotiated compensation, resolving the dispute without litigation.
If infringement is ongoing and may cause irreparable harm, apply to the court for a TRO to immediately halt the infringement.
Conditions for TRO Application
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Urgency: Infringement is ongoing, risking irreparable loss without immediate action.
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Sufficient evidence: Prove the existence and severity of infringement.
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Reasonable compensation claims: Include economic losses and reasonable costs.
Case Study: Efficacy of TRO
An internet enterprise found a competitor using its software code without authorization. A TRO application was filed, and the court granted the order, preventing further infringement and protecting the enterprise’s rights.
While taking emergency measures, enterprises must assess infringement impacts and devise response strategies.
Comprehensive loss assessment forms the basis for strategy formulation, evaluating impacts on economic interests, market share, and brand image:
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Economic losses: Direct losses (e.g., sales decline, profit reduction) and indirect losses (e.g., goodwill damage, customer attrition).
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Market share: Evaluate declines in market share and competitor gains.
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Brand image: Assess harm from consumer confusion and reputation damage.
Case Study: Importance of Loss Assessment
A leading electronics firm suffered a 30% sales drop due to counterfeit products. Analysis showed 15% market share loss and reduced brand trust, providing critical evidence for subsequent legal action.
Based on loss assessment, develop strategies covering legal actions, market responses, and internal management:
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Legal actions: Choose civil litigation, administrative penalties, or criminal filing based on infringement severity.
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Market responses: Mitigate impacts through marketing and brand campaigns (e.g., issue statements to clarify facts and rebuild consumer trust).
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Internal management: Strengthen IP protection systems and staff training to prevent recurring infringements.
Case Study: Effectiveness of Response Strategies
A tech company filed a civil suit, launched marketing campaigns, and improved internal IP management after an infringement. These measures restored its market position and protected rights.
IP infringement is an inevitable challenge, but prompt emergency responses, combined with comprehensive loss assessment and strategic planning, can help enterprises effectively safeguard their rights. This guide aims to empower enterprises to respond swiftly and decisively against infringements.
