Mail Fraud Targets New Trademark Registrants

Imagine this: Shortly after receiving notice from the US Patent & Trademark Office that your trademark application has been approved, you get another letter in mail. This letter offers to register your newly acquired trademark with US Customs & Border Protection services. The letter alleges that by registering with Customs, a database will be used to screen and block imports of any kind that house products infringing on your trademark and prevent them from entering the country. The company sending you the letter further claims to offer a trademark infringement monitoring service to keep you updated on whether or not there are any threats to your trademark. Sounds like a good idea, right?

Unfortunately for many, they too thought this was a good idea and sent money to the “company” making the offer with the hopes of now having their trademark registered with Customs and constantly monitored. What they didn’t realize was that it was all a scam.

On October 9, 2015, Artashes Darbinyan from California was charged before a Grand Jury in the United States District Court for the Central District of California, with twelve counts of mail fraud and four counts of aggravated identity theft. At present these are only allegations; the accused has not been found guilty of any of the above-mentioned crimes. Darbinyan’s case is set to go to trial in March of this year.

It should be noted that a trademark owner can register their trademark with US Customs & Border Protection and that Customs does scan imports for trademark infringements using an Intellectual Property Rights Recordation (“IPR”). However, doing so has a minimal cost to the trademark owner (approximately $190) and does not include any kind of additional monitoring service.

According to the Grand Jury file, Darbinyan owned and operated the ‘Trademark Compliance Center’ and the ‘Trademark Compliance Office’ between September 2013 and September 2015. It was under the names of these companies that he solicited individuals and offered his infringement monitoring services. An element to the allegations against the accused is that Darbinyan solicited clients with zero intention of following through on his promises; this is why there are so many mail fraud charges brought against him.

The Grand Jury file goes on to explain that should the accused be found guilty of the charges brought against him, Darbinyan will be forced to give up any property owned, real or personal, which constitutes or is derived from proceeds of the fraud. The property forfeited would include a money judgment of no less than $1,850,000.00, which is a representation of the amount of proceeds obtained in the scam.

A plea bargain between Darbinyan and the Attorney General can be entered into at any time before the beginning of the trial. At present there is no word as to whether or not discussions between the two sides have been initiated.

For more information about the case of US v Artashes Darbinyan, any other trademark scams, or how you can protect your intellectual property rights, contact Revision Legal’s Trademark attorneys through the form on this page or call 855-473-8474.

Federal Mail Fraud Statute: What It Covers

Mail fraud is one of the broadest federal criminal statutes. Under 18 U.S.C. § 1341, it is a crime to use the United States Postal Service—or any private interstate carrier—in furtherance of any scheme or artifice to defraud. Courts have consistently interpreted the statute broadly: the “scheme to defraud” element requires only that the defendant contemplate some deception, and the “use of mails” element is satisfied even if the defendant did not personally mail anything, so long as use of the mails was reasonably foreseeable in carrying out the scheme.

Each individual mailing in furtherance of the scheme constitutes a separate count. This is why cases like that of Artashes Darbinyan—charged with twelve counts of mail fraud—can carry substantial sentencing exposure. Each count carries a maximum of 20 years imprisonment under 18 U.S.C. § 1341, and counts can run consecutively.

How Scammers Target New Trademark Owners

The USPTO’s Trademark Official Gazette publishes newly registered marks, and this public record is exploited by scammers who send official-looking letters to new registrants. These solicitations typically mimic government correspondence in their design—using seal-like graphics, official-sounding names such as “Trademark Compliance Center” or “Patent and Trademark Bureau,” and urgent language suggesting that failure to respond will result in loss of trademark rights.

Common scams targeting trademark owners include:

• Fake “registration” with a private database, claiming it is required to maintain trademark rights
• Invoices for “monitoring services” that either do not exist or duplicate services the registrant already receives from their attorney
• Solicitations to register with foreign trademark offices, at inflated prices and without any actual legal filing
• Offers to record the trademark with U.S. Customs and Border Protection at prices far above the actual $190 IPR Recordation fee

USPTO Warnings and the Trademark Official Gazette

The USPTO actively warns trademark applicants about unsolicited solicitations. Its website maintains a list of known scam entities and notes that the USPTO itself does not send solicitations for maintenance services, monitoring, or foreign registration. Legitimate USPTO correspondence arrives from specific addresses: mail.uspto.gov for email and the USPTO’s Alexandria, Virginia address for physical mail. Any invoice or renewal notice that does not come from those official sources should be treated with extreme skepticism.

The Trademark Trial and Appeal Board, trademark examining attorneys, and post-registration staff will communicate directly with the mark’s listed attorney of record, not with third-party solicitors. If you receive a letter claiming to be from a government agency or an affiliate thereof about your trademark, contact your trademark attorney before responding or sending any payment.

Civil Remedies for Scam Victims

Beyond the criminal consequences faced by scammers, victims of trademark mail fraud may have civil remedies. If you were defrauded into paying for non-existent or worthless services, you may have claims for civil fraud, unjust enrichment, or violation of state consumer protection statutes—many of which provide for treble damages and attorney fees. Federal claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962, are also available where the fraud was part of a pattern of racketeering activity, with civil RICO providing for treble damages and attorney fees under § 1964(c).

Protect Your Trademark Investment

The best protection against trademark scams is a trusted trademark attorney who handles all USPTO correspondence on your behalf and can quickly identify fraudulent solicitations. If you believe you have received a scam letter related to your trademark registration, or if you have already paid for services that were not delivered, contact Revision Legal at 855-473-8474 or fill out the contact form on this page. Our trademark attorneys can advise you on your legal options and help protect the investment you have made in your brand.

Trademark owners should also be aware that the USPTO’s online trademark database (TESS) is publicly accessible, meaning scammers can identify new trademark registrants within days of registration and target them with official-looking solicitations. The best practice is to filter all trademark-related correspondence through your trademark attorney’s office, so that your attorney—not you—is the first line of defense against fraudulent solicitations. If you are a trademark owner who has received a suspicious letter related to your registration, contact Revision Legal at 855-473-8474 before responding or sending any payment.