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A cease-and-desist letter is a formal notice instructing someone to stop engaging in illegal activity, such as trademark or copyright infringement, harassment, violation of trade secrets, or defamation. It serves to inform the recipient that they are now aware of their unlawful actions, eliminating any claims of ignorance. Cease-and-desist letters should be sent when there is clear evidence of illegal activity, ideally by a business attorney. Common mistakes include failing to provide sufficient evidence in the letter or sending it without prior informal communication. It is crucial to ensure the letter is well-drafted to avoid misinterpretation or escalation of the issue.