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How to protect a trademark infringement judgment

If you are pursuing a lawsuit for damages for trademark infringement, you may not be thinking about how the culprit company will be paying a judgment in the event you are successful at trial. After all, a substantial jury award may not just cripple a company, it could destroy it; essentially putting it out of business.

If a company saddled by a huge judgment goes out of business, or even worse, files for bankruptcy protection, what is to happen to the judgment? If the company files for bankruptcy (whether it be Chapter 7 or Chapter 11) a valid judgment could be placed in jeopardy. In essence, you could be facing a situation similar to that in Josh Grisham’s “The Rainmaker.”

To keep from suing the next proverbial “Great Benefit Insurance Company” it is worth researching the company and discovering whether there are sufficient assets to pay such a judgment should one be obtained. This information is commonly obtained through discovery, which is a process where both sides exchange information so that each may have sufficient knowledge of the issues involved as well as the pitfalls that await them if things do not go as planned.

Ultimately, the one of the best things that can be done to protect a potential judgment is to make sure that all the possible research is done so the surprises may be limited. For advice on what to do if a company is judgment proof, or if an entity should be sued in another capacity, an experienced attorney can help. 

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