UPC Local Division: Security for Costs

At any point during the proceedings and upon a reasoned application by a party, the Court may order the other party to provide appropriate security for the legal costs and other expenses incurred or to be incurred by the applying party, which the other party may be required to bear, within a specified period. In deciding whether to issue a security order, factors such as the other party’s financial situation and/or the likelihood that any costs order made by the Unified Patent Court could not or could only be enforced under unreasonable burdens must be taken into account. The mere fact that the claimant is domiciled in the United States and has no prior experience with the enforcement of Unified Patent Court orders in the United States is not sufficient on its own to order security for costs (Nordic-Baltic Regional Division, 20 August 2024, Court of First Instance 380/2023).