Anyone who receives a warning letter due to a trademark, copyright or competition law infringement will usually find a cease-and-desist declaration attached.
But be careful: this document is not a mere formality, but can result in permanent legal obligations and considerable contractual penalties.
What is a cease-and-desist declaration?
The cease-and-desist declaration is a central instrument of industrial property protection, particularly in trademark law, copyright law and competition law.
It serves to eliminate the so-called risk of repetition - i.e. the assumption that a certain infringement could occur again.
By submitting a cease-and-desist declaration, the person being warned undertakes to refrain from certain behavior in the future. This obligation is regularly secured by a contractual penalty promise.
Only if the risk of repetition has been eliminated can the warned party prevent judicial measures such as an interim injunction.
What are the risks of a cease-and-desist declaration?
A prematurely issued cease-and-desist declaration can have far-reaching consequences:
- Formulations that are too broad: Many ready-made declarations go beyond what is legally necessary.
- High contractual penalties: Even minor or unintentional breaches can trigger substantial payments.
- Permanent commitment: A cease-and-desist declaration is generally valid indefinitely - violations can become costly even years later.
A cease-and-desist declaration should therefore never be signed without being checked.
When does a modified cease-and-desist declaration make sense?
In many cases, it may make sense to adapt the cease-and-desist declaration sent with the warning letter and to send a modified cease-and-desist declaration to the other party. This also eliminates the risk of a repeat infringement without binding the obligated party more than necessary.
A modified cease-and-desist declaration:
- limits the obligation to what is legally required,
- avoids excessive contractual penalties,
- and reduces the risk of later disputes.
A specialist lawyer for industrial property protection should always check which form is sufficient in a specific case to eliminate the risk of repetition.
Conclusion: Never sign a cease-and-desist declaration thoughtlessly
A cease-and-desist declaration can help to resolve conflicts out of court.
At the same time, it entails considerable legal and economic risks.
The following therefore applies:
Have every cease-and-desist declaration checked by a specialized lawyer before you sign it.
Have you received a warning letter? We can help you quickly and reliably.
Our law firm specializes in IT law, intellectual property law, copyright and media law as well as data protection law.
We check for you:
- whether the warning is justified,
- whether a cease-and-desist declaration is required,
- and how it can be usefully modified
We support you nationwide - competently, efficiently and with many years of experience in dealing with warning letters.
