The Canadian Lawyer Magazine
Trademark fraud in Canada is increasing, becoming more prevalent and increasingly sophisticated, lawyers say.
Scammers exploit public data to deceive trademark owners, using highly convincing but misleading correspondence that is difficult to detect as fraudulent. More fraudsters are now impersonating lawyers from well-established firms, adding to the deception, they say.
May Cheng, an IP lawyer at Dipchand LLP, and Meghan Dillon, a trademark lawyer at Smart & Biggar LLP, have observed a rise in these scams.
They add that these schemes now target not only registered trademark holders but also businesses using unregistered marks.
Aggressive and sophisticated scams
Cheng says fraudsters are growing bolder. They are now impersonating actual law firms, fabricating infringement claims, and falsely accusing lawyers of making costly mistakes.
She says these companies scrape publicly available trademark information and bypass legal counsel to contact clients directly.
“They write to your clients directly and say, ‘If you want to maintain this registration, you better pay me this fee.’”
She adds that fraudsters are sending more misleading letters and emails than before, making their schemes harder to detect.
“They’re sending these alarming letters to your client saying your lawyer dropped the ball… They even identify like a legitimate boutique law firm, and that firm is, of course, not the source at all,” she says.
Dillon notes that trademark authorities are aware of these scams.
“The Canadian Intellectual Property Office and the US Patent and Trademark Office both have web pages dedicated to these frauds,” she says.
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