ARTICLE
29 October 2025

UPC: Legal Advice As A Lifeline - UPC Clarifies Director Liability In Philips v. Belkin

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In its decision of 3 October 2025, the UPC Court of Appeal clarified the scope of personal liability for company directors in the context of patent infringement proceedings. The case concerned an appeal brought by Philips...
United Kingdom Intellectual Property
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In its decision of 3 October 2025, the UPC Court of Appeal clarified the scope of personal liability for company directors in the context of patent infringement proceedings. The case concerned an appeal brought by Philips against three Belkin entities and their managing directors, following a finding of infringement by the Munich Local Division in relation to EP 2 867 997, a patent concerning wireless inductive charging under the Qi standard.

The Court of Appeal overturned the court of first instances' (Munich Local Division) finding that the directors were liable as "intermediaries." It held that a managing director cannot be considered a "third party" in relation to their own company and therefore cannot be classified as an intermediary under Article 63. Personal liability requires conduct that goes beyond ordinary managerial duties, such as knowingly permitting infringement or actively using the company to commit infringing acts.

In this case, the directors had obtained legal advice concluding that the relevant acts did not constitute infringement. The Court found that reliance on such advice was sufficient to negate liability, at least until a first-instance decision establishes infringement.

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