Rogue law firms are frantically making money. How to deal with TRO?

1. What is the typical settlement amount?

The settlement amount is mainly affected by the frozen amount, the sales volume of the infringing products, and the sales revenue brought by the infringing products. Legally speaking, the plaintiff's bottom line is generally at least the defendant's sales volume, and on this basis, the plaintiff's lawyer will try to get as high as possible.

2. Is the settlement amount negotiated based on the amount on the day of freezing?

Generally, the amount of money on that day is frozen. However, new law firms are constantly joining the platform, and many law firms are now directly asking the platform to suspend lending. As long as the case is not resolved, it is not recommended to continue large-scale sales to avoid greater losses.

3. Can I continue to ship after freezing?

The account that was sued for infringement was frozen. Generally, only the product that was complained for infringement was deleted from the platform, and other products can operate normally. If a lawyer has been entrusted to settle, the settlement compensation will be a certain proportion of the account funds on the day of freezing. If you respond to the lawsuit, it is recommended to suspend shipment. The response time is long and there are many uncertainties.

4. Will the plaintiff file a TRO lawsuit again after the settlement?

If infringement continues, the company will still be sued, but infringements committed before the signing of this settlement agreement can no longer be pursued.

5. Can I contact the plaintiff’s law firm on my own to reach a settlement?

If the defendant directly contacts GBC and other law firms, they will generally ignore it. If the lawyer is not a local U.S. lawyer, GBC and other law firms will generally ignore it . It is recommended to entrust a local U.S. lawyer who has experience in handling related cases.

6. Does the transaction have to be successful before the other party can file a complaint?

No, selling infringing products or promoting infringing products in stores constitutes infringement. The purpose of the other party's lawyer's fishing purchase is sometimes to obtain physical evidence and increase the integrity of the evidence, but more often it is to obtain the client's PayPal information.

7. If the frozen amount is not much, should I give up the store?

In addition to the frozen amount, it is also necessary to measure the value of the store and other aspects. Before the account funds are executed, you can consider reconciliation, but the earlier the better for negotiation.

8. Can a TRO ban be lifted through platform appeal?

No, the TRO is issued by the court and is not subject to the platform's control. Even if there is no infringement, the TRO should be lifted by responding to the lawsuit.

9. Does it matter if I don’t handle the infringement after it’s frozen?

The defendants in the case are usually the store name and store URL or domain name, which does not involve personal reputation issues. If you choose to give up the store and give up the frozen funds in the account, you need to pay attention to issues such as related prosecution.