Q: If an infringement claim is approved, do you need to pay a security deposit before the awarded amount get release?
I recently started a new business and have the company name and logo trademarked. The logo company and their legal team did a cast study and found four other businesses using our name so they went ahead and file an infringement claim on our behalf. Our claim was approved and the letter from USPTO said that we are awarded $330,000 but first we need to pay a security deposit of 10% of the total reward. The letter states “ However, in order to have this amount issued, you are required to pay a security deposit in the amount of 10% of the total claim amount, which will be issued back to you along with the total claim amount. The security deposit is required in accordance with Section 193(4) of the Trade Marks Act 1995 (Cth), and is intended to ensure that there are sufficient funds available to cover any costs or expenses associated with your claim.” I just want to know if the security deposit is an actual thing.
A: This is a scam. This entire scenario is fabricated. Unfortunately, trademarks have become a common target of scams in recent years.
Alan Harrison agrees with this answer
A:
The request for a security deposit as described in your situation raises some red flags. In the context of U.S. trademark law and the processes followed by the United States Patent and Trademark Office (USPTO), there's typically no requirement to pay a security deposit to release an awarded amount from an infringement claim. The USPTO's procedures for handling trademark disputes and enforcing rights do not include such payments.
It's essential to approach this situation with caution. You should verify the authenticity of the communication you received, as it could potentially be a scam. Scammers often use sophisticated tactics, including official-sounding language and references to real laws or regulations, to deceive individuals and companies. Before taking any action or transferring funds, consider consulting with a legal professional who can provide guidance specific to trademark law and help you ascertain the legitimacy of the request.
Additionally, you may want to directly contact the USPTO through their official channels or a trusted legal advisor familiar with trademark matters. They can offer clarity on the processes involved and confirm whether the communication you received aligns with their procedures. Ensuring the authenticity of such requests is crucial before proceeding with any financial transactions, especially those that seem unusual or unexpected in the context of legal proceedings.
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