Headwater Research v Motorola Mobility (CFI, ORD_18004/2025, 3 July 2025)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

By order of 3 July 2025 (UPC_CFI_149/2024), the judge rapporteur Voß (Munich Local Division) ordered Headwater Research, proprietor of EP 3 110 069, to provide security for costs of EUR 200,000 to the three Motorola companies and EUR 100,000 to Flextronics International Europe, and rejected Headwater’s own request for security against the defendants.

Question

Can the infringement claimant obtain security from a defendant that counterclaims for revocation, and when must a non-practising entity provide security?

Decision

Art. 69(4) UPCA does not allow a claimant to obtain security, including in respect of the revocation counterclaim, which is a direct consequence of the action. Rule 158 cannot go beyond the Agreement (paragraphs 16 and 17). Genuine doubts are sufficient, without actual insolvency (paragraph 19). Being a non-practising entity is not enough in itself, but Headwater showed neither licence income nor the value of its portfolio, the grant of a patent being no proof of commercial value, and the credit reports were not rebutted (paragraphs 24 to 31). The EUR 600,000 ceiling covers the counterclaim (paragraphs 35 to 37), is split two thirds and one third (paragraphs 38 to 40), and security is set at half of each share (paragraphs 41 to 43).

Key points for practice

• Practical point: faced with a request for security, the proprietor must document its financial position, relying on its patent portfolio or third-party funding is not enough.

Provisions applied

Agreement on a Unified Patent Court

Art. 69(1) and (4)

Rules of Procedure

Rules 152, 158 and 355

Scale of ceilings for recoverable costs and Guidelines of 24 April 2023

Art. 1

Case law cited

Court of Appeal: Ballinno v Kinexon, 26 August 2024, NST v Audi, 17 September 2024, SodaStream v Aarke, 29 November 2024, Total Semiconductor v Texas Instruments, 14 January 2025 and Emboline v AorticLab, 20 June 2025, Edwards Lifesciences v Meril, 29 September 2023, Munich Local Division, ICPillar v ARM, 21 May 2024, Paris Local Division, Düsseldorf Local Division, Ona Patents v Google, 27 December 2024, and Maxeon Solar v Aiko Energy, 14 April 2025

Related decisions

• Flextronics International Europe, 3 July 2025, parallel order in action UPC_CFI_127/2024 (EP 3 110 072).

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.