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If you run your own business, you may face occasions that require you to assert your legal rights against another person. While we tend to think that asserting our rights means suing another person, most disputes are resolved out of court. A cease and desist letter is one tool you can use to settle a dispute without involving the courts. The purpose of a cease and desist letter is to alert another person or business that their conduct violates your business’ rights. The letter gives them notice that unless they stop, you are prepared to take further action.
This article will explain what a cease and desist letter is, and how you might use them.
What is a Cease and Desist Letter?
A cease and desist letter is a document informing another party that their actions are unlawful and violate your business’ rights. The letter lets the other party know that unless they stop the conduct in question, you are prepared to take further action. This may include initiating formal court proceedings. The intent behind a cease and desist letter is to encourage the recipient to alter their conduct voluntarily.
Cease and desist letters are common in intellectual property disputes. For instance, suppose your business has developed a piece of software to license out to your customers. You come to find that someone without a licence is using your software without paying you. You can send a cease and desist letter to encourage them to stop before you take additional steps.
Additionally, businesses may use cease and desist letters in the context of defamation. For example, there might be a newspaper in town wrongly reporting that your business defrauded the local council. You might consider sending the newspaper a cease and desist letter requesting they stop publishing articles about your business and publicly retract their comments.
Further Considerations
There are a number of important legal features of a cease and desist letter.
The law may require you to use a cease and desist letter before involving the courts. This means that you can only initiate a claim after you have sent a cease and desist letter, which the other party ignored. Even if it is not a strict legal requirement, where possible, sending a cease and desist letter is often the easiest and quickest way to get another party to change their conduct.
Additionally, the letter might contain more than just a demand for the other party to stop doing something. You could request compensation for their conduct. It could even serve as a letter before the claim, which is a formal document you must send before you refer the dispute to court.
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Contents of the Letter
Below is a table outlining what your letter should contain.
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Specify the conduct |
The letter should clearly inform the other party which action, in particular, has aggrieved your business. This ensures they know what action to take. |
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Relevant dates |
The conduct may either be sporadic or continuing. For instance, a newspaper publishing defamatory articles is sporadic. Using unlicensed software might be continuing. |
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How the conduct is unlawful | Your letter should explain how the person’s conduct is unlawful or otherwise harmful to your business. For instance, a news article alleging fraud might be defamatory. Unlicensed use of your software might be theft and unlawful use of intellectual property. If you are upset with the other party’s conduct, but their actions are not specifically unlawful, you should seriously consider the merits of sending a letter. If the conduct is lawful, they are free to ignore the letter. Depending on how you draft the letter, your conduct may be vexatious or harassing. |
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State your intentions if the letter is ignored |
You should clearly state what steps you intend to commence if the letter is ignored. For instance, for criminal conduct, you may state you will refer the matter to the police. You may also initiate civil proceedings to recover damages or ask a court to order the other party to take certain steps. |
Cease and desist letters can create unintended legal obligations depending on how you draft them. You should, therefore, ensure a solicitor has reviewed the letter before you send it.
Key Takeaways
A cease and desist letter is a letter that lets another party know that you consider their conduct harmful and unlawful. The letter indicates that you are asking them to stop the conduct or otherwise alter their actions. If they do not, you are prepared to take further action against them.
If you need help with your business, our experienced dispute lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today at 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A cease and desist letter is where you demand another party to stop doing their illegal activity.
Damages are a remedy given by the court and are a monetary sum that reflects the loss that your business has suffered.
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