As we enter the new year, businesses are seeing a concerning rise in the sophistication of scams targeting Intellectual Property (IP) rights.

This article serves as a reminder for businesses to stay vigilant against these emerging scams and offers practical guidance on how to identify and deal with them.

The Increasing Threat: How Scams Are Being Presented

It is becoming increasingly common for businesses with registered IP, such as Trade Marks, to receive unsolicited emails from firms offering IP services. These emails often exploit the fact that contact details for registered IP holders are publicly available through IP Australia’s Trade Mark search register.

These communications typically urge businesses to pay for Trade Mark renewal services, often creating a false sense of urgency. While legitimate IP practitioners may use publicly available registers to find new clients or remind businesses of upcoming deadlines, the cost of such services can often be inflated and subject to negotiation.

However, scammers are also targeting these public registers, particularly focusing on new Trade Mark applications or existing registrations nearing important dates, such as renewals. Recently, we’ve seen more sophisticated scams where fraudsters impersonate government agencies or established legal firms, a trend that IP Australia has flagged as a growing concern (Scams related to managing IP Rights, IP Australia).

link: https://ipaustralia.gov.au/about-us/doing-business-with-us/fraud-and-corruption/scams-related-to-managing-ip-rights

Recognising Scam Red Flags

A recent example of a scam involved an individual posing as an IP practitioner, claiming they had been contacted by a third party to file a Trade Mark application. The scammer then offered to file an urgent Trade Mark application for the business – threatening to file the application on behalf of the third party if the business didn’t act quickly. The email also included threats of legal action and cease and desist orders if the business did not pay for IP services.

Common warning signs of IP-related scams include:

• False or misleading information
• Documents with watermarks designed to impersonate government bodies or law firms
• Urgent requests for action, such as filing a Trade Mark application or paying an inflated invoice

Scammers often target businesses during key periods, such as when new IP rights are being filed or when renewals are approaching. Businesses should be especially cautious during these times.

How to Protect Your Business

If you receive a suspicious email, follow these steps to safeguard your business:

1. Do not respond to unsolicited communications without first verifying the sender. A simple Google search of the claimed firm or checking the IP Australia Trade Mark register can help confirm the legitimacy of the message.
2. Consult your trusted legal adviser or an official source if you have doubts about any correspondence concerning IP rights.
3. Be cautious when considering overseas legal services in relation to IP matters, as some scams involve services from international firms.
4. Exercise caution – always verify before responding to any requests or paying invoices.
5. Contact your IP solicitor if you’re unsure whether an email is a scam. They can help confirm if the correspondence is legitimate.

How We Can Help

At Hillhouse Legal Partners, we’re here to help you navigate and protect your intellectual property. Whether you have questions about your IP rights, need professional guidance with applications, or are due for a renewal, we’ve got you covered. Reach out today to Zach Sudiro, John Davies, or Craig Hong.  We’re here to provide the support you need to keep your business safe and thriving.