LD Hamburg, June 10, 2025, Order, UPC_CFI_360/2026 — Security For Costs Against Asset-Pledged Patent Litigation Entity

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Florida Statutes’ conditions for recognizing foreign judgments reflect international standards and do not justify ordering security for costs under R. 158 RoP

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1. Key takeaways

Florida Statutes’ conditions for recognizing foreign judgments reflect international standards and do not justify ordering security for costs under R. 158 RoP

The fact that a claimant is domiciled in the U.S. does not establish an enforcement risk. Section 55 of the Florida Statutes conditions recognition on ordre publique, reciprocity, and fair trial principles – standards equally present in European jurisdictions. The defendants failed to demonstrate any practice of non-recognition of UPC decisions in Florida. In particular, these rules do not imply that the Courts of the State of Florida would likely deny recognition of decisions of the UPC as of any other European Court who is following a loser-pays rule, using a front-loaded system or is restrictive on discovery or expert hearings.

A claimant whose entire patent portfolio and all income are pledged to a third party is effectively assetless, justifying security under Art. 69(4) UPCA and R. 158 RoP

Where a claimant’s assets consist essentially of a patent portfolio, and all patents, licenses, income, royalties, proceeds and liabilities are pledged under a security agreement, the claimant is rendered basically assetless in an economical sense – regardless of retained legal ownership. This justifies ordering security for costs.

The claimant was a newly established single-purpose entity, incorporated just days before acquiring the patent portfolio, with no credit history and an outstanding purchase balance of USD 2 million, rendering it also mainly illiquid and dependent on a third party’s willingness to fund.

The judge-rapporteur may issue security for costs orders without convening a full panel (R. 158 RoP)

R. 158 RoP does not exclusively reserve security for costs decisions to the full panel. This flexibility allows the judge-rapporteur or presiding judge to organise proceedings efficiently and cost-effectively.

The amount of security must balance cost-recovery interests with the claimant’s right of access to justice under Art. 47 EU Charter

The security need not equal the ceiling for recoverable costs. The Court set the amount at 50% of the applicable ceiling (EUR 200,000 out of EUR 400,000), balancing the defendants’ legitimate interest in cost recovery against the claimant’s fundamental right to an effective remedy under Art. 47 EU Charter and the Enforcement Directive. The Court did not follow the defendants’ suggestion to consider a high out-of-court settlement offer and to raise the value in dispute accordingly.

2. Division

Local Division Hamburg

3. UPC number

UPC_CFI_360/2026

4. Type of proceedings

Application for security for costs

5. Parties

Applicants / Defendants: Infoblox Inc., Infoblox Germany GmbH, Nomios Germany GmbH
vs.
Claimant: Nixu FL IP Protection LLC

6. Patent(s)

EP 2 005 696

7. Jurisdictions

UPC

8. Body of legislation / Rules

Art. 69(4) UPCA, R. 158 RoP, R. 158(5) RoP, R. 355 RoP, Art. 47 CFR.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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LD Hamburg, June 10, 2025, Order, UPC_CFI_360/2026 — Security For Costs Against Asset-Pledged Patent Litigation Entity

Contributor

1. Key takeaways

Florida Statutes’ conditions for recognizing foreign judgments reflect international standards and do not justify ordering security for costs under R. 158 RoP

A claimant whose entire patent portfolio and all income are pledged to a third party is effectively assetless, justifying security under Art. 69(4) UPCA and R. 158 RoP

The judge-rapporteur may issue security for costs orders without convening a full panel (R. 158 RoP)

The amount of security must balance cost-recovery interests with the claimant’s right of access to justice under Art. 47 EU Charter

2. Division

3. UPC number

4. Type of proceedings

5. Parties

6. Patent(s)

7. Jurisdictions

8. Body of legislation / Rules

Intellectual Property

Contributor

Germany