No. 74 - April 22, 2025

UPC Court of Appeal on suspensive effects and more

Timan Pfrang
Tilman Pfrang, LL.M.
Patent Attorney, Dipl.-Phys.

UPC Court of Appeal on suspensive effects, uncontested facts and legal consequences

In its order of 17 April 2025 (UPC_CoA_312/2025 et al.), the Court of Appeal (CoA) of the Unified Patent Court (UPC) dismissed an application by Kodak for suspensive effect under Rule 223 RoP, following an infringement decision in favour of Fujifilm by the Mannheim Local Division (UPC_CFI_365/2023). Further, the CoA clarified the consequences of a fact remaining uncontested.

Background

Kodak had appealed the Local Division’s judgment, which granted broad remedies to Fujifilm for infringement of EP 3 511 174. These included a permanent injunction, product recall and destruction, an award of damages, and costs. The court did not require Fujifilm to post security for enforcement. Kodak’s counterclaim for revocation was dismissed in full.

Kodak sought suspensive effect of the appeal, citing alleged manifest errors by the Local Division, including incorrect treatment of priority, disregard of asserted prior user rights, and violations of its right to be heard.

Court of Appeal reasoning

The Court of Appeal, presided by Judge Rian Kalden, reaffirmed that the default rule under Art. 74(1) UPCA is that an appeal does not have suspensive effect. Departures from this principle are permitted only in exceptional circumstances - such as manifest errors in the decision under appeal or if enforcement would render the appeal meaningless (cf. UPC_CoA_301/2024 – ICPillar v ARM).

Kodak failed to meet this threshold. The Court emphasized that:

“Kodak has failed to demonstrate that the Court of First Instance’s findings and considerations constitute manifest errors.”

Importantly, the Court clarified the scope of Rule 171.2 RoP, rejecting Kodak’s assertion that an uncontested factual statement mandates a corresponding legal consequence:

“Even if there is an uncontested fact, this does not imply that the legal consequence for which this fact was submitted automatically follows.”

The Court underlined that it is for the court to assess whether the advanced facts support the legal conclusion, reinforcing the court’s autonomous role in applying the law.

Key takeaways

  • The Court of Appeal continues to apply a high bar for granting suspensive effect, requiring clear, manifest errors or extraordinary prejudice.
  • Rule 171.2 RoP does not bind legal conclusions. Uncontested facts are binding only as to their truth, not their legal consequences. The court retains discretion to determine the legal relevance.
  • Parties should prepare for enforcement despite appeal. Unless suspensive effect is granted, remedies ordered by the first instance court are enforceable regardless of a pending appeal.