UPC CoA 217/2024

The UPC Court of Appeal ordered the release of security deposits (totalling EUR 500,000) previously provided by Network System Technologies LLC in three cases following withdrawal of its infringement actions against Audi AG, Texas Instruments, and Volkswagen, applying R.352.2 RoP by analogy to security for costs.

Order of the Court of Appeal dated 27 September 2024 on Audi AG's request for rectification under R. 353 RoP of a prior CoA order (dated 17 September 2024) requiring Network System Technologies LLC (NST) to provide security for costs of EUR 100,000, EUR 100,000 and EUR 300,000 in three appeal proceedings. Audi requested that the rectified order also include the notification under R. 158.4 RoP that default judgment may follow if NST fails to provide the security within three weeks. The CoA granted this request, finding the omission of the R. 158.4 notification was an obvious slip, as that notification is mandatory.

The UPC Court of Appeal set aside the Munich Local Division's orders denying security for costs and ordered Network System Technologies LLC to provide security to Audi AG in amounts of EUR 100,000 (two cases) and EUR 300,000 (one case), finding that the lower court applied too high a standard of proof and that NST's failure to disclose its financial situation warranted the order.

The Court of Appeal allowed Audi's application to file additional written pleadings to correct factual submissions by NST in Audi's appeal against the dismissal of its security-for-costs application.

The UPC Court of Appeal denied Audi AG's request to expedite the appeal against the Munich Local Division's refusal to order security for costs from Network System Technologies LLC in infringement proceedings concerning EP1875683, finding the request too unspecific and insufficiently substantiated.