In the course of civil proceedings courts may temporarily regulate relations between the parties through a preliminary injunction (PI) order. For example, the PI order may consist of prohibition to market certain goods, to publish certain content, or even to use an existing name of the company. Pursuant to Article 7562(1) of the Code of Civil Procedure a court which grants a PI order may threaten the obliged party with ordering to pay a specified sum of money to the authorised party if the obligations specified in the PI order are infringed. This sum is commonly referred to as the "coercive sum" and constitutes an extremely attractive instrument for entities which initiate the proceeding.
A coercive sum is applied primarily to motivate the obliged party to execute the PI order. However, in case of non-execution or improper execution of the PI order, the coersive sum goes to the authorised party. Thus, this institution combines the function of a sanction with the compensatory function, and at the same time it replaces a fine. This peculiar combination, although beneficial for the authorised party, is undoubtedly a source of significant doubts in practice.