Trademark Scam Alert: Fraudulent Low-cost trademark design & filing sites

The United States Patent and Trademark Office (USPTO) has announced a number of show-cause orders and exclusion orders issued by the Commissioner for Trademarks. According to an alert by the USPTO, on January 25, 2022 the orders were issued against three entities Abtach Ltd., 360 Digital Marketing LLC, and Retrocube LLC. These entities claimed to promote “low-cost trademark design and filing websites” and are accused of having defrauded applicants and the USPTO. The allegations claim that over 5,500 applications were fraudulently filed through these entities. These applications have been terminated.

Who May Be Affected by These Sanctions?

If you have filed for a trademark through one of the following entities or websites below, the USPTO advises that your application may be impacted:

Next Steps

If you believe your application may have been impacted, it is recommended that you check the status of your application through the Trademark Status and Document Retrieval (TSDR) system. Impacted filings will be designated “suspended for an administrative investigation.”

In the near-term, affected applicants will need to file a new trademark application to receive a new serial number and filing date. Additional details can be found here.

Furthermore, if you have been the victim of a scam and would like to report your information to the USPTO task force, visit the action checklist here.

A Fight Against Fraud

In the current highly-active economy, the USPTO has seen a massive spike in usage and service demands, and in the process has noted with alarm a rise in new low-cost filing entities, including these scam outfits. While the USPTO lacks law enforcement capability, it has marshalled the resources and enforcement mechanisms that it does have so as to prevent a glut of filings that are ultimately impermissible and fraudulent. This most recent wave of cancellations is further to that USPTO effort.

Remain Aware

“Trademark mills” take aggressive marketing tactics to gain large volumes of unaware consumers. These providers trumpet low-cost services as their main draw; however, they often entirely lack the experience, knowledge, or required credentials to offer any service worth paying for. Federal trademark registrations are very valuable. As you seek to obtain these valuable assets, it is advisable to utilize competent counsel with the experience and legal ability to facilitate your efforts. Entities that offer cut-rate services with little to not customer service likely will leave you worse off than if you simply opt to apply without any assistance.

If you have any questions regarding this alert or would like to consult with a member of our IP group, please do not hesitate to contact us.

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Zach Eyster

Partner, Trademark and Brand Management Attorney at Founders Legal

Zach’s core practice is to help clients protect and grow the value of their most important brand assets. His experience in trademark, brand, licensing, and technology runs deep, as he has operated within these very specialized, niche areas of practice over the course of his entire legal career.

Having accrued significant experience before the USPTO and Trademark Trial & Appeal Board, and in the day-to-day protection and growth of clients’ IP assets, he is well-prepared to counsel on the most efficient, cost-effective, and investment-worthy courses of action with clients at all stages of growth and maturity.

Latest posts by Zach Eyster (see all)

• Navigating Brand Protection and Trademarks for Social Media Influencers - February 6, 2023
• Trademark Alert: Fraudulent Low-cost trademark design & filing sites - January 28, 2022
• What is the process of getting a trademark? A step-by-step timeline. - December 9, 2021