Injunction Bonds
What is an Injunction Bond?
The term injunction bond usually refers to a preliminary injunction bond. The bonded injunction only lasts until the litigation has finally ended. When the litigation ends, the judge has decided either to make the injunction permanent, honor a settlement, or award damages (in the amount of the bond) to the Defendants. The judge’s order should cancel the preliminary injunction bond.
Injunction bonds often arise in intellectual property cases as well as employment and real estate cases. In intellectual property cases, a Plaintiff often accuses a Defendant of infringement and would like to stop any of the Defendant’s actions involving the disputed intellectual property. The injunction bond protects the Defendant if the court later determines the Plaintiff’s accusations were baseless or the Defendant was improperly suspended. Lawyers on both sides try to convince the judge of setting a bond amount most beneficial to their client. Thus, Plaintiffs will request a low bond amount and Defendants will request a high bond amount. Ultimately, however, the judge decides the bond amount.
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