Hayes Scott Bonino Ellingson & Guslani, LLPHayes Scott Bonino Ellingson & Guslani, LLP2026-05-26T13:02:02Zhttps://www.hayesscott.com/feed/atom/WordPress/wp-content/uploads/sites/1605197/2020/12/cropped-site-icon-32x32.jpgOn Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[Enforcing your mark: When does a cease and desist become a lawsuit?]]>https://www.hayesscott.com/?p=518722026-01-23T21:30:38Z2026-01-23T21:30:38ZProtecting a trademark does not stop at registration. In many cases, the real work of safeguarding this particular kind of intellectual property interest begins when another business starts using a confusingly similar name, logo or brand identity. For trademark owners, a cease and desist letter is often the first step in enforcement, but it is not always the last.
A cease and desist letter is designed to put an alleged infringer "on notice." It outlines the trademark owner’s rights, explains how the other party’s conduct creates confusion or dilution and demands that the infringing use stop. In some situations, this is enough. Smaller businesses or unintentional infringers may comply quickly to avoid legal exposure.Problems generally arise when a recipient ignores this kind of letter, challenges an existing trademark’s validity or continues infringing activities. Brand "squatters," in particular, often view cease and desist letters as a negotiating tactic rather than a serious warning. They may attempt to extract payment, delay compliance or expand their use in hopes of gaining leverage. At that point, the trademark’s owner must decide whether to escalate their enforcement efforts.
Taking an infringement scenario to court
A cease and desist letter can inspire a lawsuit when voluntary compliance fails or when delay would cause irreparable harm. Continued infringement can weaken a mark, confuse customers and erode goodwill. In competitive markets, allowing infringement to persist can signal that a brand is not being actively protected, inviting further misuse. Litigation sends a clear message that a trademark owner is serious about enforcement.Filing suit also unlocks remedies that letters alone cannot facilitate. Courts can issue injunctions forcing an infringer to stop immediately. Lawsuits may also allow trademark owners to seek damages, profits earned through infringement, statutory damages in certain cases and recovery of attorney’s fees. For brand squatters and willful infringers, litigation is often the only effective way to stop the conduct.Hayes Scott Bonino Ellingson & Guslani, LLP, approaches trademark enforcement with a litigation-first mindset. Rather than treating lawsuits as a last resort, the firm evaluates every cease and desist through the lens of how the dispute would play out in court. This approach discourages gamesmanship by infringers and positions clients to act decisively when compliance is not forthcoming.Enforcing a mark is about more than sending letters. It is about protecting brand integrity with credible legal pressure. Knowing when a cease and desist must become a lawsuit can make all the difference between preserving a strong trademark and watching it erode. Reaching out to our firm can help you to better understand how these broad concepts may play out in favor of your company’s unique interests. ]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[Enforcing contracts through litigation to protect trade secrets]]>https://www.hayesscott.com/?p=517532025-06-17T09:18:34Z2025-06-20T09:18:09Zinclude restrictive covenants in contracts to prevent the disclosure of trade secrets. Nondisclosure or confidentiality agreements can play a key role in preventing employees, service providers, vendors and others from sharing information that gives a business a competitive advantage.
If there is proof that a party with access to information about an organization shared that information with another business or on social media, it may be necessary to take legal action. Enforcing restrictive covenants through civil litigation can limit the harm caused by the disclosure of trade secrets.
Restrictive covenants persist after arrangements end
Certain aspects of employment and business contracts end with the working relationship. However, restrictive covenants often include language intended to make them enforceable for years after the end of a business relationship. A nondisclosure agreement might include terms that make it inappropriate to disclose non-public information indefinitely after the end of an employment relationship.
An executive with non-public information about proprietary manufacturing processes or special formulas generally cannot use that information to start a competing business or as leverage when seeking a position with a competitor. Former employees or vendors with information about how a company operates cannot provide that information to others while still subject to a nondisclosure agreement.
In some cases, the initial agreement may have penalties built into the contract. Other times, it may be possible to seek damages based on how the disclosure of non-public information may have affected a company’s profit margins or market share.
Taking the matter to court can lead to an injunction that prevents the disclosure of non-public information during and after the court proceedings. Judges may enforce penalty clauses or award plaintiffs damages.
Not only can successful litigation related to restrictive covenant violations lead to compensation, but it can also serve as a deterrent to others who are subject to similar agreements with the business. Employees and outside businesses may be less likely to engage in contract violations when they know that a business is assertive about enforcing its contracts.
Including the right provisions in business contracts and monitoring conduct to identify violations of those agreements can both be critical for the protection of a company's intellectual property. Business leaders may need help adopting appropriate protective measures and identifying when legal action is necessary for the protection of trade secrets, and that’s okay.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[Is formal copyright registration needed to enforce IP rights?]]>https://www.hayesscott.com/?p=517292025-03-21T09:28:46Z2025-03-26T09:28:14ZFormal registration isn't always necessary
Submitting original creative works to the United States Copyright Office can provide formal copyright protection. The business has a clear record of its interest in the copyrighted work, which makes future enforcement simpler.
However, copyright protections in general apply to creative works even when businesses do not register them with the U.S. Copyright Office at the time of creation or publication. Businesses and creative professionals have copyright protection that begins on the initial date of publication.
Releasing a creative work as part of a marketing blitz on social media or publishing it as a work for sale to the public creates copyright protection. The creator or owner of the original work can then hold other parties accountable for monetizing or inappropriately distributing the protected work. Particularly in scenarios where the use by one party damages a company's brand or ability to monetize the work in the future, copyright enforcement litigation may be necessary.
Registration can help with enforcement
While formal registration is not necessary to have legal copyright protection, registration is beneficial during intellectual property enforcement efforts. Companies seeking to hold an infringing party accountable for misusing copyrighted images, songs or other creative works often seek formal registration at the same time that they send a cease and desist letter to the infringing party.
Organizations seeking to protect original creations or enforce copyright protection after infringement often need help with that process. Getting support as soon as possible can help limit the damage done by copyright infringement.
]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[How commercial litigation can resolve a breach of contract]]>https://www.hayesscott.com/?p=517132024-12-26T05:08:21Z2025-01-01T05:07:39ZJudges have the authority to remedy contract issues
Civil court judges can provide several different types of recourse to organizations harmed by breach of contract scenarios. In some cases, judges can provide rescission or a formal cancellation of the contractual arrangements.
In other scenarios, courts can offer injunctions. A judge can prevent a former employee from continuing to misuse trade secrets or speak in a damaging manner about their previous employer online. Judges can also order specific performance. They can require that a vendor make a delivery or that a service provider complete a project.
Financial compensation is also a viable solution after a breach of contract lawsuit. Plaintiff organizations can present evidence to the courts of the harm caused by the breach of contract. The courts can then award damages based on those losses. Judges can also enforce penalty clauses integrated into contracts that impose financial consequences for misconduct or a failure to perform.
Reviewing the contract that another party has breached and any relevant documentation of alleged violations can help those considering contract litigation determine the best type of relief to seek when filing in the civil courts. Organizations that take action after a breach of contract may limit the harm caused by another company or a former employee.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[3 common components of breach of contract lawsuits]]>https://www.hayesscott.com/?p=517002025-11-26T21:28:18Z2024-09-24T09:29:51ZValidating the contract
One of the first steps in a breach of contract lawsuit scenario is to prove that the contract is valid and enforceable. Judicial review can help validate the claim that there is a contract between the two parties.
Proving a breach occurred
With potential exceptions for lawsuits brought due to anticipatory breaches, plaintiffs typically need clear evidence that a violation of the contract already occurred. Financial records, photographs of a half-finished project or samples of products or materials that don't reach contractual standards are all potential evidence of a breach of contract. Organizations may also need evidence outlining how the breach impacted the business. The right evidence can help prove that one party's violation of a B2B agreement has affected the other company.
Requesting a specific remedy
Typically, plaintiffs pursuing a breach of contract lawsuit ask the courts for a particular solution based on the circumstances. They may ask the courts to enforce the initial agreement by issuing an order of specific performance. They might ask for damages because the breach of contract caused significant financial setbacks for the organization. They could even ask for the courts to release them from the contract so that they don't have any future obligations to the other party. All of those solutions can be useful depending on the situation.
Taking a breach of contract issue to court is often the only remedy available if the other party isn't eager to correct the issue at hand. Business owners and executives should be ready to assert themselves in scenarios where another company doesn't follow through with contractual promises and much is at stake.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[Is formal registration necessary for trademark protection?]]>https://www.hayesscott.com/?p=516792024-06-28T18:19:49Z2024-06-28T18:20:30ZCommon law trademark rights are not enough
In the United States, trademark rights can be established through actual use in commerce, even without formal registration. This is known as “common law” trademark rights.
The key advantage of this is that automatic rights are acquired as soon as the mark is first used in commerce, and this can serve as a foundation for opposing the registration of a similar mark by another company before formal registration is acquired. However, protection acquired this way is usually limited to a specific geographic area and the trademark’s owner has the burden of proof of their prior use of the mark if a dispute arises.
Formal registration of a trademark with the United States Patent and Trademark Office offers much stronger protection. Not only does it provide nationwide protection for the trademark’s use, but registration serves as public notice to others that can potentially deter infringement. In addition, registration can serve as a stepping stone for obtaining trademark protection in other countries, which is increasingly important due to the rise of global commerce.
Finally, in the event of trademark infringement, registration offers unambiguous proof of ownership, which can make it easier to enforce cease-and-desist orders and obtain judgments for any damages in court.
Enforcing trademark protections and protecting intellectual property often requires a degree of professional support. Learning more about registration and enforcement rules with the assistance of a skilled legal team can be beneficial for anyone invested in original creative works. Contact the trademark lawyers at Hayes Scott to inquire whether your company can secure this protection for your marks.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[3 reasons that franchisees may need to file a lawsuit]]>https://www.hayesscott.com/?p=516452024-03-29T05:59:14Z2024-04-03T05:58:59ZTerritorial violations
Businesses offering franchise opportunities often go to great lengths to help investors secure reasonable returns on their investments. Preventing other franchisees from operating a business too close to an existing franchise is crucial to ensuring adequate demand for the goods or services a franchise offers. Franchise contracts frequently include clear territorial protections. If the franchisor lets another franchisee begin operating too close to an existing franchise location, that may lead to litigation because of the impact it could have on the established franchisee.
Inadequate marketing investments
Marketing at the national, regional and local levels is often crucial for franchise success. They help drive brand awareness and interest in what the company has to offer. Oftentimes, franchisors commit to investing a certain amount in local marketing to support new franchises. A failure to follow through on those commitments could mean underwhelming returns for a franchisee. Issues with local marketing could easily lead to lawsuits.
Failure to train and support franchisees
Franchisees may or may not have business experience, and they likely require special training to operate a successful franchise. Franchisors offer training on everything from ensuring products or services align with company standards to employee management. When a franchisee does not receive adequate training or does not receive ongoing support after establishing their business, that may violate the terms of the agreement initially reached with the franchisor. Franchise lawsuits can lead to financial compensation, orders of specific performance or relief from an expensive franchise agreement.
Those taking legal action while subject to a franchise contract often need help preparing for what could be a very complex litigation case. Reviewing franchise contracts with a skilled legal team is often a crucial starting point for those preparing for franchise-related business litigation.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[What is a trade secret?]]>https://www.hayesscott.com/?p=515952024-01-02T08:05:51Z2024-01-05T08:05:20ZDefining a trade secret
A trade secret is generally defined by three key characteristics:
It must be information that is not generally known or readily accessible to the public.
The information must hold economic value due to its secrecy.
There must be reasonable efforts to maintain its confidentiality.
Examples of trade secrets include the Coca-Cola formula, Google's search algorithm and KFC's blend of herbs and spices.
Protecting trade secrets
Unlike patents, trade secrets are protected without registration. In the United States, the federal Defend Trade Secrets Act provides a legal framework for protecting trade secrets and allows an owner to sue in federal court for trade secret theft.
One of the most common methods to protect trade secrets involves confidentiality agreements, such as non-disclosure agreements. These agreements bind employees, contractors or any third party to secrecy and are enforceable in court.
Measures for trade secret protection
It is vital to educate employees about the importance of trade secrets and their role in protecting them. Regular training sessions can help inculcate a culture of confidentiality within an organization.
Physical security measures like secure storage, restricted access areas, surveillance and digital security, such as encryption, secure networks and access controls, are also essential to protect against unauthorized access to certain trade secrets.
Regular monitoring of how trade secrets are used and accessed can help to identify potential breaches. Swift enforcement actions, including legal measures against any infringement, reinforce the seriousness of protecting trade secrets.
Finally, conducting thorough exit interviews with departing employees can help ensure they understand their ongoing confidentiality obligations and the consequences of violating them.
Trade secrets are a valuable business asset, offering a competitive advantage in a crowded market. Their protection hinges on a combination of legal tools, internal policies and vigilant enforcement. Seeking legal guidance proactively can help to ensure that trade secrets remain an exclusive asset that contributes to a company's long-term success and innovation.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[When a client or supplier violates a nondisclosure agreement]]>https://www.hayesscott.com/?p=515922023-09-29T09:11:06Z2023-10-04T09:10:45ZCalifornia's restrictions on nondisclosure agreements specifically apply to employment contracts, not other business agreements.
How can companies respond to a violation of a non-disclosure agreement in a business contract?
Documenting the violation
It will be crucial for a business to have evidence of the infraction if there is any intention to take legal action. Particularly when a violation occurs on social media, where someone could delete a post, creating records of the violation as soon as it occurs and in as much detail as possible will be important for the protection of a company with vulnerable trade secrets.
Providing notice of the violation
Once there is proof of how another party that signed a contract with the business violated the nondisclosure clause included in the contract, the business can send them a formal notice of the infraction, as well as a request for the payment of any penalty imposed by the contract. Doing so may prevent future violations or may prompt the other party to correct the matter to the best of their ability. Depending on the nature of the violation and the impact it has already had on the business, the organization may then determine whether or not it wants to pursue legal action.
Asking the courts for support
Evidence ranging from the original contract to the letters submitted to the party violating the agreement can help convince the civil courts that one party breached the nondisclosure agreement in a business contract. At that point, the terms of the contract will strongly influence what the courts will do. If the contract outlines specific penalties, the courts may enforce those penalties. Other times, the business initiating litigation could seek damages based on the impact that the violation of the nondisclosure agreement has had on the company's operations.
Understanding how to react when someone violates a non-disclosure agreement can be as important as integrating the right protections in the business contracts initially. Seeking legal guidance can be valuable in both scenarios.]]>On Behalf of Hayes Scott Bonino Ellingson & Guslani, LLP<![CDATA[Why do new businesses need a trademark?]]>https://www.hayesscott.com/?p=514852023-06-21T08:18:03Z2023-06-26T08:17:19ZWhat is a trademark?
A trademark is “any word, phrase, symbol or design that identifies your goods and services." It is something that is indelibly linked to your brand image and which your customers will recognize and associate with you. Classic examples of popular trademarks include the Nike Swoosh symbol, the McDonald's Golden Arches and the Google logo. Each of these represent a trademarked property of these respective businesses which convey meaning and provide value.
Trademarks are filed with the United States Patent and Trademark Office at the federal level, however companies can also file for state trademarks with their state agency, such as California's Secretary of State. A state trademark provides protection for your brand in your state for a lower fee, but a federal trademark establishes your brands protection across the United States.
Why should you care about it?
When you hold the trademark to something, you have the exclusive right to make use of it in the course of business. One reason brands are so protective of their trademarks is that they hold a lot of influence over potential customers. When a consumer sees your trademark on a product, they will associate that product with your brand and the goodwill you have built around it.
In the even that someone misuses or infringes on your trademark, they are effectively stealing the goodwill that you have created for our brand and appropriating it for their product. This misleads consumers into purchasing a product or service that competes with yours and robbing you of their business.
If you hold the trademark to the part of your brand which has been infringed upon, such as your logo, then you have the right to prevent them from using it. You can do this either through a cease-and-desist letter, or in more serious cases a trademark infringement lawsuit.]]>