UPC CoA 218/2024

The Court of Appeal ordered the release of security deposits (totalling EUR 500,000) that NTS had provided for costs in three related cases, following withdrawal of the underlying infringement actions by NTS at the Munich Local Division.

The Court of Appeal issued a separate notification to NST (Network System Technologies LLC) pursuant to R.158.4 RoP, informing it that failure to provide the ordered security for costs within three weeks may result in a decision by default in the main infringement proceedings brought by NST against Volkswagen AG.

The Court of Appeal set aside the Munich Local Division's orders refusing security for costs and ordered Network System Technologies LLC to provide security for costs to Volkswagen AG, finding that NST's financial position as a special-purpose patent enforcement entity created a legitimate concern that a cost order might not be recoverable.

The Court of Appeal (standing judge) dismissed Volkswagen AG's application to file additional written pleadings in appeal proceedings (UPC_CoA_218/2024) challenging a CFI order on security for costs in an infringement action by Network System Technologies LLC. Volkswagen sought to respond to certain facts in NST's statement of response. The Court held that R. 239.1 RoP makes R. 35 and R. 36 RoP applicable in appeal proceedings mutatis mutandis but found no sufficient grounds for allowing additional pleadings in the circumstances.

The Court of Appeal denied Volkswagen's request to expedite the appeal and shorten deadlines under Rules 225(e) and 9.3(b) RoP, finding the request too unspecified and insufficiently substantiated.