More than a thousand stores were frozen, and rogue law firms issued TROs crazily!

More than a thousand stores were frozen, and rogue law firms issued TROs crazily!

The recent incident of hanging banners downstairs of Temu Building has caused a lot of controversy.



Although Temu's gameplay of squeezing sellers and burning gold has brought great happiness and satisfaction to consumers, it only brings the happiness and satisfaction of slacking off on low-priced goods, and no other experience. Therefore, the news about Temu has always been full of complaints.


The reason for the banner incident seems to be that Temu froze millions of sellers’ funds. Many people speculated that the reason for freezing the funds might be due to product infringement. However, there are also many inhuman aspects of the Temu platform. I can only say that Temu sellers are really miserable! !



However, it was the court that froze the seller's funds, so Temu cannot be blamed. In the cross-border circle, as long as there is suspected infringement, the person will be held accountable. The worst case scenario is that the store will lose all its money.


Because there is a thing called "TRO".


With the Q4 peak season approaching, the stores cannot afford to make mistakes, but the law firm is making trouble. According to incomplete statistics, 1,616 stores have been sued and frozen since October, and this is only the list of defendants in a very small number of cases. I am sure that a large number of sellers will receive TRO emails.


Once a TRO is issued, the infringing listing will be removed from the shelves and the payment account will be frozen. If not handled in time, the frozen funds will be deducted. If the frozen amount is not enough for compensation, it will be deducted until the deduction is completed. This is definitely a major blow to sellers, so be careful!

How do I know if my store has been TROed?

TRO stands for Temporary Restraining Order. When the plaintiff files a complaint with the court, he or she will usually apply to the court for a temporary injunction. After Amazon receives the temporary injunction notice, it will generally notify the seller by email. If the email you receive contains the words "Temporary Restraining Order", it means that the store has been TROed.



What should I do if I receive a TRO email?


1. Stop the infringement and consider whether to settle or respond to the lawsuit


When you receive an infringement notice, don't panic. First, ask yourself the following questions:


① Find the infringing products and delete them, and stop the infringement in time

②Confirm the frozen amount and store permissions

③ Analyze the case and consider whether to settle/respond to the lawsuit (if you believe that you have not infringed upon the rights after analyzing the case, you can choose to entrust a lawyer to take response measures)


Special reminder: Generally, the validity period of a TRO is 14 days. If the plaintiff has sufficient reasons, he can apply for an extension to 28 days. If the seller does not take action within this period, the plaintiff will apply for a PI (preliminary injunction), continue to freeze the account funds and send a Summons to the defendant seller, who must handle it within 21 days. If the seller is absent from the lawsuit or does not reach a settlement, the frozen funds will be directly transferred to the other party's law firm after the trial. Therefore, it is recommended that everyone must actively respond to a TRO, otherwise the longer you delay, the more disadvantageous it will be for you.



2. Entrust a lawyer to conduct infringement settlement


Once you decide to settle the dispute, you can immediately entrust a lawyer to handle the case, which can usually be resolved smoothly in about 1-2 months. The specific process of infringement settlement is as follows:


① Entrust a lawyer to understand the case and estimate the settlement amount

②Contact the plaintiff’s lawyer to negotiate a settlement

③The two parties reached a preliminary agreement

④Wait for the plaintiff’s lawyer to issue a settlement letter

⑤The defendant signs the settlement agreement and pays the settlement money

⑥ The plaintiff's lawyer submits a letter of withdrawal and contacts the platform to unfreeze the defendant's fund account


Note: There are two ways to pay the settlement money: one is to deduct it from the frozen funds, and the other is for the seller to pay it directly to the plaintiff. Jite recommends that sellers choose the second method, which is not affected by the platform's deduction time and is relatively fast.

JITE successful settlement case sharing

Negotiated the settlement from 100,000 USD to 1,500 USD


The seller was sued for allegedly infringing the yellow duck B.DUCK, and the plaintiff's lawyer proposed a settlement of 100,000 US dollars. After receiving the commission, JITE carefully compared the suspected infringing products with the plaintiff's rights protection products and found that the seller did not use the B.DUCK word trademark and copyright image. After that, JITE's lawyer seized this point and communicated with the other party. After many efforts, a settlement of 1,500 US dollars was finally finalized. From August 11, 2023 to September 4, 2023, the case was successfully resolved in 24 days .



Reduce the $95,000 settlement to $10,000


The seller was sued for infringing the Nike trademark, with infringing sales of $10,700 and a frozen amount of $256. The plaintiff's lawyer requested a settlement of $95,000 , far exceeding the seller's highest amount of $13,800. After many negotiations by Jite's lawyer, the case was finally settled for $10,000.



16 days to complete the settlement


The seller was sued for infringing SMILEY's smiley face. On August 9, he contacted JITE for a settlement. The plaintiff's lawyer asked for a settlement of 10,000 US dollars. After several rounds of negotiations, JITE's lawyer finally settled on a settlement of 3,800 US dollars. The seller's account funds were unfrozen on August 25. The entire case lasted 16 days.



12 days to complete the settlement


The seller was sued for infringing the copyright of Jonas Sebastian Jodicke's works. Although the amount of infringement was only over 200 US dollars, the frozen funds were close to 80,000 US dollars. The plaintiff's law firm proposed a settlement of 40,000 US dollars. Since this amount was too different from the seller's infringement amount, the lawyers of JITE actively communicated and finally reached a settlement of 15,000 US dollars acceptable to the seller. It took 12 days from accepting the commission on August 21 to successfully settling on September 1.



If you receive a TRO email and don’t know what to do, you can contact JITE for help:


  • Handled over 6,000 cases in total, with extensive experience in dealing with law firms


  • Professional American lawyers follow up and tailor solutions


  • Good at finding favorable negotiation points and striving for a lower settlement amount


  • Quick follow-up, timely synchronization of the latest information, dedicated and efficient


  • No upfront fees, only charged if the settlement is successful, no fee if unsuccessful


  • Available agent platforms: Amazon, eBay, AliExpress, Wish, Walmart, etc.


Sellers who encounter infringement freezes should seek professional analysis and processing in a timely manner. Effective negotiations with professional attorneys can not only successfully unfreeze the accounts, but also reduce the settlement amount to the minimum. Of course, the best solution is to sell your own brand and use original works to avoid infringement. After all, regardless of whether the problem is solved smoothly or not, after being sued, you will face the painful consequences of losing both money and goods, such as product removal and inventory backlog.

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