The impact of an infringement design patent applicant’s application for property preservation on the respondent includes property freezing, restriction of capital flow and impact on credit record.
1. Property freezing: Applying for property preservation means that the court will freeze the respondent’s property to ensure that the respondent’s property will not be transferred or consumed during the resolution of the case. This will have a significant impact on the respondent's daily operations and financial status.
2. Restriction of capital flow: Property preservation will restrict the respondent’s capital flow, including freezing bank accounts, prohibiting the transfer of funds or property, etc. This would result in the respondent being unable to pay debts, purchase materials or pay employees, etc.
3. Impact on credit record: Application for property preservation will have a negative impact on the respondent’s credit record. This can cause difficulties for the respondent in future loans, credit card applications or other financial transactions.