What to Do If You’re Served With a Trademark Lawsuit

Trademark lawsuits can be intimidating especially for small or midsize businesses that never expected to find themselves facing a federal complaint. Whether you believe you did nothing wrong or simply made an honest mistake, how you respond in the first days and weeks can significantly shape the outcome.

Here’s a practical, straightforward guide to help you navigate the process if your business is served with a trademark lawsuit.

1. Preserve All Relevant Materials

One of the most common and most damaging mistakes businesses make is immediately discarding or altering the product or materials at issue. Courts expect parties to preserve evidence as soon as litigation is reasonably anticipated. This may include:

• The products themselves
• Packaging, tags, labels, or inserts
• Invoices, receipts, and purchase records
• Communications with suppliers or distributors
• Any marketing or advertising connected to the product

Preserving materials shows good faith and protects you from claims that evidence was intentionally destroyed.

2. Gather Whatever Documentation You Have

You do not need perfect records, very few small businesses have them. But even partial documentation can help clarify how the product or mark entered your supply chain. Useful documents include:

• Order confirmations
• Supplier invoices
• Email exchanges
• Shipping or payment records

These materials can provide context, demonstrate reasonableness, and strengthen your position in early discussions.

3. Respond Promptly and Professionally

Ignoring a trademark complaint will not make it go away. Failing to respond can result in a default judgment meaning the court may rule against you without hearing your side. Early engagement, either directly or through an attorney, helps:

• Prevent unnecessary rulings against you
• Reduce the scope of the dispute
• Show that you are acting responsibly

4. Understand That Trademark Liability Can Be Strict

Trademark law does not always require intent. A business can face liability even if it did not realize the product or mark was problematic. However, intent does matter when it comes to:

• Available remedies
• Whether enhanced damages may apply
• Whether the situation is viewed as an innocent mistake or something more serious

This is why providing truthful information and responding cooperatively is so important.

5. Consider Mediation Early

Many trademark disputes are resolved long before trial, often through mediation. Mediation offers:

• A confidential setting
• A neutral professional to guide discussion
• An opportunity to clear up misunderstandings
• A cost‑effective path to resolution before legal fees escalate

For many businesses, early mediation is the most efficient and financially practical solution.

6. Cooperation Matters

In trademark cases, cooperation does not equal admitting fault. Instead, it signals good faith. Parties often show more flexibility when the other side:

• Provides information about how the product was sourced
• Shares invoices or supplier details
• Shows willingness to correct any issues moving forward

This openness can dramatically improve the tone and outcome of the dispute.

7. The Bottom Line

Being served with a trademark lawsuit does not automatically mean your business acted wrongfully. It does mean, however, that you have legal responsibilities you must take seriously.

The most important steps you can take are:

• Preserve all relevant evidence
• Collect whatever documentation you have
• Seek early guidance from a qualified professional
• Pursue mediation when appropriate

Approaching the situation proactively protects your rights, minimizes risk, and positions your business for the most reasonable and efficient resolution possible.