Few business communications are as alarming to receive as a cease and desist letter. Whether it arrives by email, certified mail, or through your company's registered agent, a cease and desist letter signals that another party believes you are doing something wrong and is putting you on notice to stop. Understanding what these letters actually mean — and what they do not — is essential for making a smart response rather than a panicked one.
This guide explains what cease and desist letters are, what legal weight they carry, the most common situations in which they are used in Nebraska, and the steps you should take when you receive one.
What Is a Cease and Desist Letter?
A cease and desist letter is a formal written communication demanding that the recipient stop a particular activity and refrain from engaging in it in the future. Despite what the letter may suggest, it is not a court order, a lawsuit, or a legal document issued by any governmental authority. It is a private communication from one party (or their attorney) to another, asserting that the recipient is engaged in wrongful conduct and demanding that it stop.
Cease and desist letters are typically sent before litigation as a last step before a lawsuit is filed. They serve several purposes: they formally notify the recipient of the sender's legal claims, they create a documented record that the recipient was aware of the alleged wrongdoing (which can affect the availability of enhanced damages in some cases), and they give the recipient an opportunity to resolve the dispute without the cost and disruption of litigation.
Common Reasons for Cease and Desist Letters in Nebraska
Trademark infringement, copyright infringement, and trade secret misappropriation are among the most common grounds for cease and desist letters in the business context. If your company's marketing materials, product names, logo, or website content is alleged to infringe on another party's intellectual property rights, you may receive a letter demanding that you immediately stop using the infringing materials and provide documentation of your compliance.
Employers frequently send cease and desist letters to former employees who are alleged to be violating restrictive covenant agreements such as non-compete clauses or non-solicitation provisions. Nebraska courts scrutinize non-compete agreements carefully, requiring that they be reasonable in scope, geographic area, and duration. If you receive a cease and desist letter related to a former employment relationship, it is important to have the underlying agreement evaluated by an attorney before responding.
Cease and desist letters are also sent in response to alleged defamatory statements — false statements of fact that damage someone's reputation. If a competitor, customer, or former business partner believes you have published false and damaging information about them, they may send a cease and desist demanding that you retract the statement and stop making similar claims. Nebraska defamation law distinguishes between statements about public figures (which require proof of actual malice) and statements about private individuals (which require proof of negligence at minimum).
Cease and desist letters frequently arise out of commercial disputes involving alleged contract breaches, tortious interference with business relationships, unfair competition, or violations of Nebraska's Uniform Deceptive Trade Practices Act. These letters typically demand that the recipient stop the conduct complained of while the underlying dispute is addressed.
Receiving a cease and desist letter requires a measured, strategic response — not an emotional one. The response you give (or fail to give) can significantly affect the trajectory of the dispute that follows.
What to Do When You Receive a Cease and Desist Letter
The most important immediate step is to consult with an attorney before taking any action. Do not ignore the letter, do not respond impulsively, and do not make any admissions in writing before speaking with legal counsel. An attorney can help you evaluate the strength of the sender's claims, understand your legal position, and formulate the most strategic response.
Your attorney will consider several questions when analyzing the letter. Are the legal claims asserted actually supported by the facts? Is the demand reasonable and consistent with what a court would order if the sender prevailed in litigation? Are there defenses available to you? Is there a negotiated resolution that would serve your interests better than either capitulating or fighting? What are the litigation risks on each side?
Possible Responses to a Cease and Desist Letter
There is no single correct response — it depends entirely on the merits of the underlying claims and your strategic objectives. Possible responses include:
The business law team at Horgan Law Firm has extensive experience both drafting cease and desist letters on behalf of clients who need to assert their rights and responding to letters received by our clients who are facing demands they disagree with. If you have received a cease and desist letter or need to send one, contact us to discuss your situation and strategy.
