Safeguarding Against Fraudulent IP Demands

Introduction

Businesses and individuals must remain vigilant against fraudulent activities that threaten their intellectual property (IP) rights. A rise in sophisticated scams involving fake IP firms issuing fraudulent demands highlights the need for awareness and proactive measures to protect trade marks and other IP assets.

 

Identifying the Scam

Scammers impersonate legitimate IP firms, sending emails that demand payment for services such as trade mark renewals or registrations. These communications often appear authentic, using official-looking logos, language similar to genuine legal correspondence, and in some cases use the names of professionals well-known in their respective fields.

 

Common Characteristics of Fraudulent Demands

• Unsolicited Communication – Unexpected emails or letters regarding IP assets.
• Urgent Payment Requests – Demands for immediate payment to avoid loss of rights or legal action.
• Suspicious Contact Information – Email addresses or phone numbers that do not match known IP services providers.
• Inaccurate Details – Errors or inconsistencies in trade mark numbers, names, or other key information.

 

Legitimate vs. Fraudulent IP Communications

Aspect	Legitimate IP Communications	Fraudulent IP Communications
Source	Official IP offices or authorised IP attorneys.	Unfamiliar entities posing as IP firms.
Payment Instructions	Standard procedures with verifiable bank details.	Requests for wire transfers to unknown accounts.
Language and Tone	Professional, with specific references.	Generic language with threats or urgency.
Verification	Can be confirmed through official channels.	Difficult to verify; lacks credible contact details.

 

How to Protect Against Fraud

1. Verify Authenticity – Confirm the legitimacy of any communication by contacting your IP attorney or the relevant IP office directly.
2. Maintain Accurate Records – Keep detailed records of IP assets, including registration dates and renewal schedules, to cross-check against received demands.
3. Educate Staff – Train employees to recognise and report suspicious IP-related communications.
4. Report Suspicious Activity – Report fraudulent demands to authorities such as the Australian Competition and Consumer Commission (ACCC).

 

Example of a Fraud Attempt

A business owner receives an unexpected email from an entity claiming to be their IP firm, stating that their trade mark requires immediate renewal and requesting payment via a provided link. The email contains minor discrepancies in the firm’s logo and uses a generic email domain. The owner contacts their actual IP attorney, who confirms that the trade mark is not due for renewal and that the communication is fraudulent. By verifying the demand, the owner avoids financial loss.

 

Take Away

Fraudulent IP demands pose a significant risk to businesses. Verifying the legitimacy of any correspondence, maintaining accurate records, and educating staff are essential steps in preventing financial and legal consequences. For legal advice on protecting IP assets and responding to suspicious demands, contact us.