Also called C&D · cease and desist letter · demand letter
Cease and desist, explained
A letter is not a court order and has no legal force by itself. It usually threatens a UDRP complaint, which can only transfer or cancel the name, or a US lawsuit under the Anticybersquatting Consumer Protection Act, where a court can award statutory damages of one thousand to one hundred thousand dollars per domain name. Some letters reflect strong claims; others are attempts to get a name cheaply from an owner who scares easily.
Do not ignore it, and do not answer in anger. Compare the date you acquired the name with the date the sender's rights began, check whether the name is a dictionary word or an acronym with other uses, and review how you have used it, including any parking ads. Keep any reply factual. Panels can read settlement talks: a price quote is not bad faith by itself where you have a legitimate interest, but a reply that suggests you were targeting the brand can be used against you. Consult a qualified attorney before you respond to a serious claim.
Example. After a cease and desist letter arrived, the investor documented the purchase date and the name's dictionary meaning, and had an attorney reply.
Go deeper Is Domain Flipping Legal? Investing vs. Cybersquatting
Free to read, no signup. The list is for news of the course itself.
Join the waitlistSources
Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.