Germany: Trials & Appeals & Compensation

The UPC Court of Appeal has overturned a €2 million security for costs order, finding that a claimant's litigation insurance with anti-avoidance endorsement provides sufficient protection against unenforceability of adverse costs orders. This landmark decision addresses whether appropriate litigation insurance can substitute for traditional security mechanisms and signals that courts must properly consider such policies when assessing security applications.

The defendants, including a US-based defendant, did not file a preliminary objection under Rule 19.1 RoP and were therefore deemed to have submitted to the UPC's jurisdiction.

The court confirms the principles on claim construction: The patent claim is not only the starting point but the decisive basis for determining the protective scope of a European patent...