Source: Taylor Wessing

The article provides a detailed explanation of the recent clarifications regarding jurisdiction and competence in the Unified Patent Court (UPC), a new supranational court system designed to handle patent disputes in Europe. The UPC aims to streamline patent litigation across participating European countries, offering a more efficient and harmonized legal framework for resolving patent disputes, particularly in the context of European patents and the new Unitary Patent system. However, with the court's introduction, questions have arisen about how jurisdiction and competence will be allocated between national courts and the UPC, as well as among the different divisions of the UPC itself.

The article breaks down the key developments in the UPC’s jurisdiction and competence rules, explaining how cases are to be divided between the UPC’s central, regional, and local divisions. It also clarifies the situations in which national courts will retain jurisdiction, particularly for cases involving national patents or where there is no connection to the Unitary Patent system. For businesses and patent holders, understanding this division is crucial in determining where and how to file patent infringement or revocation actions.

One of the central points of the article is the clarification surrounding the UPC’s exclusive competence. The UPC will have exclusive jurisdiction over disputes concerning Unitary Patents, including infringement actions, revocation proceedings, and counterclaims for invalidity. However, national courts will continue to have competence over national patents and other intellectual property rights that fall outside the scope of the UPC’s jurisdiction. This distinction is particularly important for businesses operating in multiple jurisdictions, as it affects litigation strategy and forum selection.

The article also discusses the procedural aspects of UPC litigation, highlighting the importance of the language regime in the court’s divisions. Depending on the division, cases may be heard in different languages, which could impact legal costs and the ease of navigating the litigation process for businesses. Additionally, the article touches on the role of the Court of Appeal within the UPC system, which will handle appeals from the UPC’s first-instance decisions.

Another important aspect covered is the transitional period during which patent holders can opt out of the UPC’s jurisdiction for European patents, choosing instead to have their disputes heard by national courts. This opt-out system allows businesses to maintain flexibility while the UPC system becomes fully operational, but it also introduces strategic considerations for companies deciding whether to remain within the UPC framework or revert to national courts.

In conclusion, the article emphasizes that the clarification of jurisdiction and competence in the UPC is a significant step in the court’s development, providing businesses with greater certainty about how patent disputes will be handled in Europe. As the UPC becomes more established, it is expected to play a key role in patent litigation, offering a centralized forum for resolving disputes efficiently and consistently across participating countries.