UPC Court of Appeal

UPC Court of Appeal Confirms Jurisdiction Over Damage Determination in Case of a National Decision on the Merits

On January 16, 2025, the Court of Appeal of the Unified Patent Court (UPC) issued a landmark “decision” concerning the jurisdiction of the UPC over claims for damages. This case, involving Fives ECL SAS and REEL GmbH, addressed whether the UPC has jurisdiction to determine damages following a national court's ruling on patent infringement – including an abstract ruling that damages must be compensated. The CoA order has significant implications for the scope of the UPC's authority and its application to acts of infringement predating its establishment.

Factual Background

Fives ECL brought an action before the Local Division Hamburg seeking €6.5 million in damages, plus interest, based on a 2022 German court decision that found REEL liable for patent infringement. The Local Division rejected Fives' claim, arguing that the UPC lacks jurisdiction over damages claims derived from national court rulings. Fives appealed, leading to the present Order of the Court of Appeal.

The Reasoning of the Court of Appeal

Scope of Article 32(1)(a) UPCA

The Court interpreted Article 32(1)(a) of the Unified Patent Court Agreement (UPCA) to encompass standalone damages claims tied to prior national infringement rulings. The term "actions for infringement" was construed to include subsequent damages claims. Consequently, the Court of Appeal of the UPC confirmed to adjudicate standalone claims for damages where a national court has already ruled on patent infringement and the infringer’s liability in principle.

Temporal Jurisdiction

The Court found no basis to exclude jurisdiction over infringements occurring before the UPC’s establishment. Article 3(c) UPCA supports this interpretation by explicitly covering all European patents in force on June 1, 2023.

Balancing Efficiency and Legal Consistency

The Court dismissed concerns about forum shopping and jurisdictional inconsistency, noting that the UPCA provides uniform procedural and substantive rules for damages claims.

Impact and Implications

This decision provides clarity on the UPC's jurisdiction over damages claims and its role in harmonizing enforcement mechanisms for European patents. Patent holders can (now) seek damages before the UPC even when liability has been previously established by a national court.

By addressing temporal applicability, the Court affirmed that the UPC can adjudicate historical claims, extending its relevance and utility in cross-border patent disputes.

Our key takeaways

• The UPC can hear damage determination actions stemming from national court rulings on patent infringement, as these fall under "actions for infringement" in Article 32(1)(a) UPCA.
• The UPC's authority extends to infringements before June 1, 2023, if the patent was still in force on that date.

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