MINNEAPOLIS — Federal officials are issuing a warning to Minnesota's small business owners about potentially fraudulent letters.
A small business owner reached out to KARE 11 about a concerning letter she received in the mail.
The letter looks official and states that it was sent by the United States Patent and Trademark Office (USPTO).
The letter explains how a trademark that was registered by this small business owner is about to expire and they need to pay more than $1,000 to renew it.
However, KARE 11 reached out to the USPTO and federal officials confirmed the letter is fake and it’s just the tip of the iceberg when it comes to people targeting new business owners.
"Her particular registration actually wasn't due for a renewal,” Commissioner of Trademarks David Gooder said.
Gooder was kind enough to look through this letter.
He agrees that the letter looks official and could easily fool a small business owner who doesn’t know what to look for.
“One error I noticed was that they used the incorrect website address. They had it listed as “.com” when it’s actually “.gov,” Gooder explains.
Trademark officials see this problem all the time.
Patent and trademark registration forms are public records, so anyone can see them, including people who are looking to make a quick buck.
“It has become more and more of an issue to the point where we have had to greatly increase our staff and resources to fight a lot of these scams,” Gooder said.
In fact, Gooder says the USPTO was recently targeted.
“The USPTO actually filed some trademarks over a year ago and we actually received these kinds of letters from some of these companies,” Gooder laughs.
Adam Hansen with the Minnesota Secretary of State's Office says it's also a problem here locally.
Companies will often reach out to new business owners offering to help them file paperwork with the Minnesota Secretary of State's Office.
"They'll charge you $150, but if you go to our website it's free and it takes about two minutes," Hansen said.
Hansen says what these companies are doing is technically legal, as long as they clearly identify that they do NOT work for the government, but they often charge a lot of money for services that are free and easy to do yourself if you know where to go.
"They try to cause confusion and say that this is something that needs to get done and hope it's something you will pay,” Hansen says.
Both the Minnesota Secretary of State's Office and the USPTO say they will NOT send out letters demanding money.
They might send out a simple reminder that says your business or trademark needs to be renewed and you can go online to learn more about it.
Federal trademark officials are concerned about this because most trademarks are filed by small business owners who are often filing paperwork for the first time.
So, they might not know what to look out for.
The USPTO has gathered several resources for business owners and trademark owners who want to learn how to protect themselves.
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