Legal Question in Intellectual Property in California

Re: cease and assist

A "cease and desist" letter is an appropriate first step in putting a halt to trademark, copyright or patent infringement, or stopping on-going misappropriation of trade secrets. It serves as notice of the rights of the injured company and may be viewed by a court, later on, as an appropriate and necessary step to mitigate damages that will be claimed in a lawsuit later on.

Most companies, upon receiving a well-written cease-and-desist letter, will take a close look at the legality of what they're accused of doing, and with the help of their attorney(s), respond by either stating their justification for what they're doing, or agreeing to stop, or suggesting mediation or the like. Occasionally, the recipient will counter-accuse the sender of infringing it's rights.

You can sue for actual damages that you can prove, and for your attorney fees. Whether you will win on either claim is a different matter. In some cases, e.g. willful and malicious misuse of certain intellectual property, you can recover attorney fees, actual damages, and punitive damages.

One fact or set of facts that is missing from your question is the basis of your claim, i.e., what legal right has been invaded? Are you claiming trademark or copyright infringement? Statutory unfair competition? The attorney who is advising you should give you a discussion of the degree and type of protection your products enjoy, and under what statutes or common-law principle the other company's activity is legally actionable. That in turn will help to define the damages you can recover and the overall nature of your possible suit, including whether it should be brought in state or federal court.