Have you or your firm received one of these letters? If so, this four-step guide will help you respond to it effectively and appropriately.

Step 1: Identify the Sender

The first thing you should do upon receiving a cease and desist letter is to identify the sender. If it came from a law firm, how reputable are they? What is their area of practice? If it came from a federal or state agency, which area of the law do they focus on? Answering these questions will give you a preliminary indication of the risks you’re facing.

The easiest way to identify a sender is to look at the letterhead. If the letterhead seems suspect or the sender isn’t clearly identified, the letter is more likely to be a scam.

Step 2: Consider the Allegations

After identifying the sender, the next thing you should always do is determine the nature of the allegations made against you. In general, cease and desist letters target ongoing courses of conduct that may violate the sender’s rights, IP rights, or the law. This can be anything from trademark infringement to the improper use of trade secrets.

Since these allegations are very different, they’ll also involve divergent legal issues. By pinpointing the nature of the sender’s demands, you’ll receive a clue on how to best address them.

Step 3: Conduct an Internal Review

Your next step should be to assess the validity of the sender’s demands. Conduct an internal review tailored to the issues raised in the letter. If the EPA, OCC, or SEC is demanding that you cease all unlawful operations, this can take time. If a competitor is alleging trademark infringement, you’ll want to get to the bottom of the matter as soon as possible.

Keep in mind that conducting a review will involve some strategic considerations. For example, if the demand implicated specific employees, exclude them from the review process.

One thing to keep in mind, however, is to never destroy documents or other information such as communications that you believe may support the sender’s demand. This could have serious repercussions if a lawsuit ensues based upon the action.

Step 4: Respond to the Letter

Ignoring a legitimate cease and desist letter will almost always escalate the situation. These letters, particularly those written by lawyers, usually threaten legal action if you don’t stop your course of conduct within a specific period of time. And since lawyers live off their reputation, you should always expect them to follow through on their promises.

By now, you should have already figured out if the letter is legitimate. If it is, respond to it as soon as you know what your strategy should be. Certainly, do not hesitate to seek an attorney who can assist with developing a well-crafted response to the cease and desist letter.