[1][2][3] This scheme, frequently used by trademark owners, involves intellectual property rightsowners filing a lawsuit against multiple online merchants using a sealed complaint that does not publicly identify the defendants.
The rightsowners then seek an ex-parte temporary restraining order (TRO) directing the online marketplaces to freeze the defendants' accounts and funds.
The marketplace account freeze often pressures defendants into settling with the rightsowner quickly, rather than engaging in an expensive legal battle.
[4][8] After filing the complaint with the sealed Schedule A, rightsowners request a temporary restraining order (TRO) without the defendants’ knowledge or presence.
[7][14] The freeze also costs the defendants money from lost sales and may leave them without sufficient cash flow to retain an attorney to represent them in court.
[14][18][19] Despite Harness being notified of the lawsuit via email, this notification landed in her spam folder,[18] and she remained unaware of the proceedings until receiving notice of the $250,000 judgment.