Waco International, Inc. (plaintiff) manufactured scaffolding products under the trademark “WACO.” KHK Scaffolding Houston, Inc. (defendant) sold scaffolding products that were compatible with Waco products. Some of KHK’s marketing materials and sales invoices identified certain scaffolding frames as “WACO” frames. The Waco mark was not actually on KHK’s products themselves. Waco sued KHK for trademark infringement and filed an application for an ex parte seizure of the scaffolding. The district court granted the application, and Waco seized the scaffolding. After the post-seizure hearing, the district court entered a final order granting Waco injunctive relief, but dissolved the seizure order because the seized products did not actually contain Waco’s mark. KHK filed a counterclaim against Waco for damages based on the wrongful seizure. The district court found in KHK’s favor and awarded damages. Waco appealed.