What does the rule say?

Rule 65(c) provides that a court may issue a preliminary injunction or temporary restraining order only if the applicant gives security in an amount the court considers proper to pay costs and damages sustained by a party found to have been wrongfully enjoined or restrained. The rule exempts the United States, its officers, and its agencies. The governing circuit's treatment of security questions also needs review.

How should I evaluate the requested amount?

Build a documented estimate of the loss tied to the proposed restraint: affected products, duration, inventory, commitments, and avoidable costs. Ask counsel to connect the estimate to the proposed order and applicable law. The rule sets no universal percentage of sales or claimed damages.

Does the bond determine what I can sell?

The injunction's actual terms determine what conduct is restrained. Rule 65(d) requires specific terms and a reasonably detailed description of the restrained acts. Review the signed order, its effective date, and any stay rather than treating the bond amount as permission to continue sales.