DISPOSAL OF GOODS AFTER CEASE & DESIST

Posted by Michael Shimokaji | Oct 30, 2018 | 0 Comments

QUESTION: Cease and desist letter, what can we do with the merchandise? We create and sell card games. Recently we received a cease and desist letter for trademark infringement on one of the games. We did stop selling the item, but what can be done with the merchandise on hand. Can we donate them to Children's hospitals, or after school programs without risking potential issues in the future? Or do they have to remain in storage?

ANSWER: Typically, part of the settlement agreement to stop selling infringing goods includes “what can the infringer do with the remaining goods”. Simply because you stopped selling the infringing goods does not mean you have the right to “dispose” of the remaining goods. 

About the Author

Michael Shimokaji

Michael’s expertise includes the strategic development of patent and trademark portfolios. He identifies those patents and trademarks that are valuable to his clients by providing them with a competitive advantage. Then, Michael obtains patent and trademark registrations in the US and abroad.

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