In late January 2022, the US Patent and Trademark Office (“USPTO”) canceled more than 5,500 trademark applications filed falsely and fraudulently by companies and websites controlled and operated by a Pakistani company now under investigation by the Pakistan government. These companies and their websites offered “low-cost trademark filing” services. But the websites and the services were fraudulent. The three main companies (and their officers, employees, agents and affiliates) named in the case were Abtach, Ltd., 360 Digital Marketing LLC and Retrocube LLC. But, as noted, the companies were all controlled by the same Pakistani entity and these companies, in turn, controlled numerous subsidiaries and operated scores of websites across the internet offering low cost trademark filings and processing services.

As can be seen from Exhibit A to the USPTO’s Final Order, some of the trademark applications had already been completed and the trademark had been registered. The USPTO chose not to cancel the registered trademark, but cautioned owners of those trademarks that the fraudulent nature of their applications could subject those trademarks to legal challenge and potential invalidity in the future.

The actions taken by the USPTO in this matter are extraordinary and unusual. It is a reminder that hiring competent and experienced US trademark attorneys is crucial to ensuring that your registered trademark is valid and legal. Fraud and falsification during the application process can invalidate a trademark registration.

As described in the Final Order, here are some of the many types of fraud that resulted in cancellation of the trademark applications:

• Use of websites holding themselves out as owned by US-based companies even though each website was, in actuality, under the primary control of Abtach, Ltd., located in Pakistan
• False advertisement of low filing fees and fake promises of faster-than-normal registrations to lure potential customers
• Falsification of USPTO application filing receipts and invoices for the purpose of charging inflated fees — for example, customers were charged “reimbursement” fees for filing an application with multiple classes of goods and services; but, in reality, the applications were single-class applications
• Sending of fake and fraudulent “USPTO demand letters” threatening legal action if customers did not register their logos and trademarks in order to pressure and coerce customers into buying filing and other services; no such letters are ever sent by the USPTO
• Falsification of USPTO filing documents and attestations
• Forged signatures on USPTO documents
• False declarations under penalty of law

How Fraudulent Trademark Filing Services Operate

The Abtach scheme is sophisticated but not unique. A well-documented pattern of fraudulent trademark filing services has emerged over the past decade, driven by the USPTO’s transition to electronic filing and the low barriers to creating websites that appear legitimate. These services typically operate through the following playbook:

• They register domain names that sound official — using terms like “trademark,” “registration,” “federal,” or “USPTO” — to create the appearance of a government-affiliated or highly credible service.
• They advertise fees far below the market rate for legitimate trademark counsel, attracting cost-conscious business owners who do not know what professional trademark representation costs or what it provides.
• They collect personal information, business information, and payment from customers, then file applications that may be defective, filed in improper classes, filed with fraudulent specimens, or never filed at all.
• They send customers documents that mimic official USPTO correspondence to create the illusion that the application is proceeding correctly, when in reality no legitimate application may exist.
• Once the customer’s money is collected and fictitious paperwork is delivered, the service becomes unresponsive — leaving the business owner with no trademark protection and no recourse against the fraudulent service.

The Legal Consequences of a Fraudulent Application

A trademark registration obtained through fraud on the USPTO is subject to cancellation at any time and is unenforceable. Under 15 U.S.C. § 1064, any person who believes they are damaged by a registration may petition for cancellation. Fraud on the USPTO — including false declarations, forged signatures, and fabricated specimens — is one of the strongest grounds for cancellation, and unlike some grounds, a petition based on fraud can be filed at any time, even after five years of registration, bypassing the incontestability protections that legitimate registrations enjoy after that period.

This means that a business owner who unknowingly used a fraudulent filing service and received a registration may hold a trademark registration that appears valid on its face but is legally vulnerable to cancellation. Any enforcement action that business owner brings against an infringer will quickly reveal the fraudulent origins of the registration, and the infringer can use those origins as a defense. Worse, the business owner may have been building its brand and investing in its trademark for years, only to find that the core legal protection — the registration — can be wiped out.

Red Flags: How to Identify a Fraudulent Trademark Service

Legitimate trademark attorneys are licensed professionals regulated by state bar associations and subject to professional responsibility rules. Here are the key warning signs that a trademark filing service may not be legitimate:

• No attorney listed or disclosed. A legitimate trademark filing service that involves actual legal advice must be performed by or under the supervision of a licensed attorney. Services that advertise trademark filings but do not disclose the name of a licensed attorney are, at best, engaging in unauthorized practice of law.
• Fees that appear too low. USPTO filing fees alone start at $250 per class. Any service advertising full trademark registration for less than government filing fees alone should be viewed with extreme skepticism.
• Official-looking correspondence that comes from the service, not the USPTO. The USPTO communicates directly with applicants or their designated attorney of record. If trademark “notices” or “demand letters” are coming from the filing service rather than directly from the USPTO, they may be fabricated.
• No USPTO attorney of record. You can verify the status of any trademark application at the USPTO’s TSDR (Trademark Status and Document Retrieval) database at tsdr.uspto.gov. If the service has not actually filed your application, or has filed it improperly, it will be visible in the official record.

What to Do If You Used a Fraudulent Filing Service

If you suspect you engaged a fraudulent trademark filing service, you should check TSDR immediately to determine whether an application was actually filed and whether it is in good standing. If the application was filed with a fraudulent specimen or false declaration, consult with a licensed trademark attorney about whether the application can be amended, whether a new application should be filed, and whether prior legitimate use can establish earlier common-law rights. If the service committed wire fraud or identity theft by forging your signature on USPTO documents, reporting the fraud to the FBI and the USPTO’s Office of Inspector General creates an official record and may contribute to federal enforcement actions like the one that resulted in the Abtach cancellations.

Contact Revision Legal

Revision Legal’s trademark attorneys represent clients before the USPTO, including in connection with fraudulent application issues, cancellation proceedings, and trademark audits. If you have concerns about your existing trademark registration or want to ensure your new application is handled correctly, contact us today.