Headwater Research v Samsung Electronics (CFI, 15 June 2025)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

By order of 15 June 2025, the Düsseldorf Local Division dismisses the request by four Samsung companies that Headwater Research, the US claimant in the action for infringement of EP 3 110 069 B1, provide security of EUR 400,000 for legal costs. The order, made in the joined infringement action and counterclaim for revocation, confirms that non-practising entity status and a seat in the United States are not, on their own, enough to justify security.

Question

Can security for costs under Art. 69(4) UPCA and Rule 158 be imposed on a claimant established in the United States and described as a non-practising entity with no visible assets?

Decision

Referring to the Court of Appeal, the division recalls that the defendant need only show that enforcing a costs order would be unduly burdensome, not that it would be impossible, and that the burden of proof lies on the defendant. As the defendants produced no evidence of US law or its application, the request fails on that ground alone. Moreover, US courts routinely recognise and enforce foreign judgments. No concrete facts point to a risk of insolvency: the claimant relies on a portfolio of 95 patent families, recurring licensing income and access to third-party investor funds. The request for security is dismissed.

Key points for practice

• A request for security for costs must be supported by evidence of the law and enforcement practice of the claimant’s home state. Assertions alone will not do.
• Non-practising entity status does not in itself establish a risk of insolvency.

Provisions applied

Agreement on a Unified Patent Court

Art. 69(4)

Rules of Procedure

Rule 158.1

Case law cited

Aarke v SodaStream, Court of Appeal, 29 November 2024, Volkswagen v Network System, Munich Local Division, 23 April 2024, UPC_CFI_514/2023.

Related decisions

• Headwater Research v Samsung Electronics, 26 September 2025, later decision in the same proceedings.

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.