The Rise of Trademark Scams: How Small Businesses Can Spot and Stop Them Before It’s Too Late

It often begins with an alarming email.

A business owner opens their inbox to find a message warning that someone else is about to register their company name as a federal trademark. The email explains that an application has been received, that the sender is “holding” the competing filing, and that the recipient has only a few days to respond if they want to secure the rights themselves. The implication is clear: act now or risk losing the name your business has been using for years.

One of our clients recently received a message that looked exactly like this. The email from an alleged “paralegal officer” claimed that he had received an application from another company seeking to trademark our client’s business name and warned that if the other applicant obtained federal protection, the client might be required to stop using the name. It cited trademark statutes, mentioned the United States Patent and Trademark Office (USPTO), and offered to “reserve” the federal rights for the client—if they responded quickly.

The message sounded official. It also sounded urgent.

It was almost certainly a scam.

Why Trademark Scams Are Surging

Scammers are exploiting two things: (1) the public nature of USPTO filings (anyone can search pending applications) and (2) small-business owners’ understandable fear of losing their brand name. Recent alerts show these scams have evolved from crude letters to sophisticated, AI-assisted emails and calls that reference real serial numbers, business details, and even the Lanham Act (the 1946 trademark statute the scammer in our client’s email clumsily cited).

Common variations include:

• Fake “competing application” threats (exactly like the sample).
• Letters purportedly from the USPTO claiming that a pending trademark will be “halted or impeded” unless the applicant calls immediately.
• Phony renewal or “cancellation” invoices demanding immediate payment.
• Offers for “low-cost” filing services that never file.
• Urgent calls spoofing USPTO phone numbers.

What makes these scams effective is that they often contain just enough truth to appear credible. The email our client received referenced federal trademark law and suggested that registration operates on a “first-come, first-served” basis. While there are situations where filing order matters, the email conveniently ignored one of the most basic principles of U.S. trademark law: rights generally arise from use in commerce, not simply from filing an application.

Misstatements like this are often deliberate. The scammers are not trying to provide accurate legal guidance; they are trying to create just enough fear to prompt a quick response.

Red Flags in the Sample Email (and How to Spot Them Instantly)

Our client’s email contains nearly every warning sign identified by the USPTO and FTC:

1. Unsolicited contact from a non-government entity – A random “trademark” firm is not the USPTO. Legitimate USPTO communications come only through your attorney of record or appear in the official Trademark Status & Document Retrieval (TSDR) system.
2. False urgency and deadlines – “Respond within 4 business days or we proceed with the other applicant.” The USPTO does not hold applications hostage or give priority this way. Federal registration is not strictly “first-come, first-served” in the manner described—prior use in commerce still carries significant weight.
3. Misrepresentation of law – Claims that you “will be required to cease all use” or that registration is “mandatory… as per the Act of 1946.” Federal registration provides nationwide protection and important benefits, but it is not required in order to have common-law rights, and the USPTO does not threaten existing users this way.
4. Pressure to pay or “reserve” rights immediately – The USPTO never demands payment by email, phone, wire transfer, or gift card. Official fees are paid only through the USPTO’s website.
5. “Paralegal Officer” offering legal services – Only licensed U.S. attorneys can represent you before the USPTO. A paralegal cannot file applications or give legal advice.

Other frequent red flags:

• Typos, wrong office names (“Patent & Custom Law” instead of “Patent and Trademark Office”), or overuse of official seals.
• Requests for payment via non-official channels.
• Direct contact bypassing your attorney (if you have one).

How Small Businesses Can Protect Themselves

For business owners, the safest response to these types of messages is simple: pause before reacting. Urgent deadlines and alarming warnings are often the very tools scammers rely on to prevent recipients from verifying the claims. They can also follow these steps:

1. Never respond or pay. Delete or forward suspicious emails to your attorney (as our client did). Do not click links or call the numbers provided.
2. Verify everything yourself—free and in minutes. Go to the USPTO’s Trademark Status & Document Retrieval (TSDR) tool at tsdr.uspto.gov. Enter your mark or serial number. If the communication doesn’t appear in your official file, it is almost certainly fake.
3. Use only licensed professionals. Require any “trademark attorney” or firm to provide their state bar license number and verify it. The USPTO maintains a directory of authorized practitioners. Non-attorney “filing services” often charge exorbitant fees and file worthless applications.
4. File the right way. Register directly through the USPTO website or through a qualified trademark attorney. Avoid “guaranteed approval” promises or rock-bottom prices—they’re red flags.
5. Monitor your own trademarks. Set calendar reminders for maintenance deadlines (between years 5–6 and 9–10 after registration). The USPTO will never call or text you about them.
6. Report the scam. Forward suspicious emails to the FTC at ReportFraud.ftc.gov and the USPTO (see their “What to Do If You’ve Been Scammed” page). Reporting helps shut these operations down.

Bottom Line: Don’t Let Scammers Steal Your Brand—or Your Peace of Mind

Trademark registration is one of the smartest investments a small business can make. But scammers want you to make that decision out of fear instead of informed strategy. By staying vigilant and working with experienced counsel, you can secure your brand the right way—without falling victim to fraud.

If you’ve received a suspicious communication about your trademark or are considering federal registration, the safest approach is to consult a qualified trademark attorney who can review the situation, verify your rights, and guide you through legitimate USPTO processes.

This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice specific to your situation.

Jeff Wilson is a Pender & Coward attorney focusing his practice on employment law, litigation, local government, and intellectual property matters.