The case is roughly as follows:
These merchants sell some counterfeit brand-name products (including European and American brands) online, such as electronic products of clothing, shoes and hats, and choose the transaction method of paying for goods through PAYPAL. Several American intellectual property law firms specializing in counterfeiting big brands sued China merchants in the United States for trademark infringement on behalf of these counterfeit brands, and applied to the local court to freeze their PAYPAL accounts. What they usually do is: firstly, collect the information about the product introduction and publicity of China merchants on the Internet as evidence materials, and contact the merchants in China as buyers, and then ask the sellers to provide the PAYPAL account after expressing their intention to buy, and then file a lawsuit in the US court and apply for a temporary injunction to freeze the funds in the PayPal account. Subsequently, if China merchants do not go to the United States to respond to the lawsuit, the frozen funds in PAYPAL account will be allocated to the trademark owner as compensation for trademark infringement after the default judgment takes effect.
We regret to tell these China merchants who seek help that even if they choose to go to the United States to respond to the lawsuit, such as counterfeiting other people's trademarks, given that the laws of various States in the United States stipulate high fines for infringement of intellectual property rights, including trademark rights, China merchants do not have enough money in their PAYPAL accounts to pay compensation, and there is almost no possibility of recovering some or all of the funds.