U.S. Trademark Office Warns of Foreign Trademark Scams
Trademark Scams Lead to Lost Money and Registrations
Federal investigators busted a Latvian scam that affected approximately 2900 businesses and their trademarks for 4.5 million dollars. The trademark scam, run by Viktors Suhoruhkovs, relied on tricking federal trademark holders into sending their renewal fees directly to Suhoruhkovs instead of the U.S. Patent and Trademark Office.
Trademark Scams Getting More Elaborate
The fraudulent racket tracked the expiration dates of small businesses, nonprofits, and startups and sent them fake renewal notices and invoices that appeared to be official and from the U.S. Patent and Trademark Office. Victims of the crime stated that they believed the invoices to be genuine because the paperwork was accurate in having their correct federal trademark registration numbers and details. The invoices requested their trademark fees, which could number in the thousands, and even had QR codes on the invoices that properly linked to the official U.S. Patent and Trademark Office’s website.
While the U.S. Patent and Trademark Office has long been aware of schemes like this, even posting warnings of such scams on their website, many trademark owners still fall prey to such cons. Fortunately, law enforcement, working in conjunction with the Department of Homeland Security, were able to stop and arrest Suhoruhkovs after tracking the payments to numerous bank accounts that criss-crossed across the nation.
Trademark Scams Result in Thousands of Cancelled Registrations and Money Loss
U.S. Trademark Commissioner David Gooder stated that foreign nationals have been increasingly behind the targeting of U.S. businesses and citizens and their intellectual property holdings. As a result of the swindle, many trademarks were still canceled or abandoned due to their owners unable to afford paying their renewal fees twice. Moreover, the process of re-registering a mark could potentially be more complicated and costly than registering a new mark.
As such, trademark owners should seek out experienced trademark counsel if they are the victims of such scams or need to re-establish rights in canceled or abandoned marks. Trademark owners can also protect themselves by consulting trademark counsel when they receive such notices in the mail in order to determine whether the paperwork is genuine.
Key Takeaways on Trademark Scams
Trademark owners should be aware of how the USPTO sends legitimate notices and should very carefully review notices received and/or consult experienced trademark counsel to avoid being victims of scams because:
the scams often use authentic-looking paperwork that can be confusing despite careful review;
the scams often target nonprofits, charities, and small businesses; and
falling for a scam will likely lead to the cancelation/abandonment of trademarks and loss of additional money in getting trademark registration rights back in order.
For more information on trademark protection, see our Trademark Services and Industry Focused Legal Solutions pages.