Cease and Desist Order (CDO)

Definition

A Cease and Desist Order in the Section 337 context is a USITC remedy that prohibits a named respondent from selling, marketing, or distributing infringing articles already imported into the United States. CDOs work alongside exclusion orders — an LEO or GEO stops new imports at the border, and a CDO prevents the respondent from monetizing existing inventory. Violation of a CDO carries civil penalties of up to $100,000 per day or twice the value of the infringing goods, whichever is greater. CDOs are enforced through USITC contempt proceedings and federal court actions.