Audi v Network System Technologies (CoA, 17 September 2024)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

In an order of 17 September 2024 in three joined appeals (UPC_CoA_217/2024, UPC_CoA_219/2024 and UPC_CoA_221/2024), the Court of Appeal set aside the Munich Local Division’s orders of 23 April 2024 and ordered Network System Technologies to provide security for Audi’s costs of EUR 100,000, EUR 100,000 and EUR 300,000, within three weeks of service. The order allocates between the parties the burden of substantiation regarding the finances of a patent enforcement company.

Question

Under Article 69(4) UPCA and Rule 158, who must establish the claimant’s financial position?

Decision

The Court must determine whether the claimant’s financial position gives rise to a legitimate and real concern that a costs order may not be recoverable (paragraph 7). Once the defendant has credibly presented its reasons, the claimant, which knows its own finances, must challenge them in a substantiated manner (paragraph 8). The Division had imposed too high a standard of proof. Absent any indication of other assets from NST, it should have been assumed that it had none (paragraph 10). The patent portfolio, largely expired or close to expiry and whose value would fall if the actions failed, was not adequate security (paragraphs 11 and 12). Security did not hinder NST’s access to justice (paragraphs 14 and 15), and the parties’ relative financial positions are not as such a criterion (paragraph 16). The amount was set at half the sums requested, as NST had proposed (paragraph 17).

Key points for practice

• Once the defendant’s reasons are credibly presented, the claimant must show its resources, failing which security will be ordered (paragraphs 8, 10 and 15).

Provisions applied

Agreement on a Unified Patent Court

Art. 69(4)

Rules of Procedure

Rule 158

Case law cited

No UPC decision is cited.

Prepared by Dhenne Avocats from the official decision, consulted on 10 October 2026. The database is updated every week, on Friday. Only the official text is authoritative.