I'm wondering what, if anything, my company should do about a cease and desist from a huge company. In a nutshell, we received a letter from a senior attorney to "cease any and all use of the trade name".
I'm also not sure what I can and can't (or shouldn't) say here, so I'm keeping it vague. If it make sense to post all of the details, I will.
The company is saying that our name "is likely to confuse consumers as to the source of your goods or services and suggest some affiliation or relationship with that does not exist". Their name is a part of our name, and our name is two words put together to sound like a third. For example, if they were "OnStar" we would be "OnStartups" (probably a bad example).
Their primary focus is hardware, and ours is SaaS, and I see no overlap whatsoever in our business models.
My business partner (we own the company together) spoke with a lawyer casually (not paying) and was told to ignore the letter, and they send these out all of the time and don't do anything to followup with them.
Is this sound advice? Or should we take this seriously and respond before the deadline (January 30,2012). We don't have a lot of money to spare, but if this is something that will bite us later, I will pay to get it resolved.
Edit: One outstanding question I have, is what's the best/worse that could happen if we do absolutely nothing in response to their letter?
We're both US companies; we're incorporated within the last year with 2 employees, they've been around for close to 50 years and are in the Dow Jones Index.