To freeze a counterfeiter’s assets in the USA, a plaintiff generally files an Ex Parte application for a Temporary Restraining Order (TRO) in a federal court. This secret filing prevents overseas sellers from draining their US-based marketplace accounts, requiring a standard federal filing fee of $402 and typically a security bond set by the judge.
Discovering that unauthorized overseas sellers are mass-producing and selling cheap copies of your patented or trademarked products can be financially devastating. On major e-commerce platforms, these counterfeiters often operate under fake names, making them incredibly difficult to track down. By the time a traditional lawsuit is filed and served, the illicit sellers usually transfer their illegal profits out of the USA and disappear completely. 📍 To stop this, intellectual property owners frequently rely on a powerful legal tool: the Ex Parte asset freeze.
An Ex Parte Temporary Restraining Order (TRO) combined with an asset freeze is a special federal mechanism that allows you to surprise the infringers. You essentially ask a federal judge to lock their marketplace storefronts and freeze their PayPal, Amazon, or US bank accounts before the counterfeiter even knows they are being sued. In this guide, we will outline the typical steps to secure a preliminary injunction to protect your brand in the USA as of March 2026.
Step-by-Step Process in the USA
Because trademarks, patents, and copyrights are governed by federal statutes, these cases are brought in US Federal District Courts. While you can generally file in any district where the infringing sales occurred, districts like the Northern District of Illinois (NDIL) in Chicago and the Southern District of New York (SDNY) are incredibly popular for handling massive, multi-defendant anti-counterfeiting schedules. The process typically follows a rigid federal timeline.
Step 1: Gathering Rock-Solid Evidence
Before a federal judge will grant an emergency order, the plaintiff must provide overwhelming evidence of the infringement. 🔍 This usually involves conducting a “test purchase” from the counterfeiter’s Amazon or eBay store. You order the fake product, document its arrival in the USA, and take detailed side-by-side photographs comparing the counterfeit item to your genuine, legally protected merchandise. You must also capture screenshots of their active storefronts and payment gateways.
Step 2: Filing the Ex Parte TRO Application
The term “Ex Parte” simply means “from one party.” Unlike a standard lawsuit where the defendant is notified immediately, your attorney files this application under seal (in secret). You are generally telling the court that if the counterfeiter is tipped off, they will immediately wire the money to jurisdictions outside the USA, such as China, making it impossible to collect damages or hold them accountable for their liability.
Step 3: Executing the Asset Freeze
If the federal judge approves the TRO, they will issue a court order commanding financial institutions and e-commerce platforms to freeze the defendants’ accounts. 💰 Your legal team will serve this signed order directly to the legal departments of Amazon, PayPal, Stripe, and relevant US banks. Within 24 to 48 hours, the counterfeiters will find their stores suspended and their funds completely locked down within the USA.
Step 4: Converting the TRO into a Preliminary Injunction
A TRO is strictly a temporary emergency measure that generally only lasts for 14 days under federal rules. Before the 14 days expire, the court will schedule a formal Preliminary Injunction hearing. At this point, the counterfeiter is allowed to appear and defend themselves. If they fail to show up—which is very common for overseas scammers—the judge will typically convert the TRO into a Preliminary Injunction, keeping the assets frozen until the final trial or a default judgment is reached.
How Much Does it Cost in the USA?
Litigating in federal court is notoriously expensive, but an asset freeze can secure the funds needed to pay these costs later. The upfront costs to initiate this aggressive legal maneuver in the USA typically include:
- Federal Filing Fee: Initiating a civil lawsuit in any US District Court costs exactly $402 as of March 2026.
- Security Bond: Federal courts usually require the plaintiff to post a bond (often ranging from $10,000 to $50,000) to compensate the defendant just in case the asset freeze was issued wrongfully.
- Attorney Fees: Specialized IP litigators in the USA typically charge between $400 and $900 per hour. Drafting a complex TRO motion can easily cost $15,000 to $30,000 in legal fees upfront.
- Process Server Fees: Serving the documents to corporate giants like Amazon or PayPal can add a few hundred dollars to your overall expenses.
| Injunction Type | Duration in the USA | Notice to Defendant |
|---|---|---|
| Temporary Restraining Order (TRO) | Usually up to 14 Days | None (Ex Parte) |
| Preliminary Injunction | Months to Years (Until Trial) | Required (Hearing held) |
| Permanent Injunction | Permanent (Post-Trial) | Required (Final Judgment) |
How Long Does the Process Take?
The entire point of an Ex Parte TRO is speed. ⏱ Once your attorney files the emergency motion, a federal judge will typically review the evidence and issue a ruling within 1 to 3 business days. Once the order is signed, platforms like Amazon or PayPal generally freeze the accounts within 24 to 48 hours.
After the initial freeze, the federal court will set a hearing date for the Preliminary Injunction, usually within 10 to 14 days. If the injunction is granted, the assets remain frozen for the duration of the lawsuit, which can take anywhere from 6 months to 2 years to finalize into a permanent settlement or default judgment.
Frequently Asked Questions (FAQ)
What happens to the frozen money if I win the lawsuit?
If you win a default judgment or trial, the federal court can order the frozen funds to be transferred directly to you as compensation for damages, lost profits, and attorney fees. This makes the asset freeze a highly effective way to actually collect money from overseas counterfeiters.
Can the counterfeiter just move the money to China before the freeze?
That is exactly the risk the Ex Parte TRO is designed to prevent. Because the application is filed secretly without notifying the defendant, their US-based marketplace funds are locked before they even realize a federal lawsuit exists in the USA.
Do I get my security bond money back?
Generally, yes. If the court eventually rules in your favor and confirms that the defendants were indeed counterfeiting your products, the security bond you posted with the court will be fully returned to you at the conclusion of the litigation.
What if Amazon ignores the federal court order?
Major US corporations like Amazon, eBay, and PayPal have dedicated legal teams that handle these orders daily. They generally comply immediately to avoid being held in contempt of a federal court order, which carries severe financial penalties.
Can I freeze the assets of 100 counterfeiters at the same time?
Yes, this is very common in the USA. Plaintiff attorneys often file Schedule A lawsuits, which bundle dozens or even hundreds of anonymous marketplace sellers into a single federal lawsuit. This drastically reduces your legal costs per defendant while freezing massive amounts of counterfeit inventory.
What is the statute of limitations for filing this claim?
For copyright and trademark infringement in the USA, the statute of limitations is generally 3 to 4 years from the time you discover the infringement. However, to get an emergency TRO, you must act quickly; judges often deny emergency freezes if you wait months to file after discovering the fake products.
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