Headwater Research v Samsung Electronics (CFI, 2 October 2024)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

By order of 2 October 2024 (UPC_CFI_54/2024, ACT_7603/2024, ORD_45269/2024, App_40280/2024), the judge-rapporteur of the Munich Local Division (panel 1, M. Zigann) ordered Headwater Research to provide, within three weeks, security for costs of EUR 100,000 by deposit into the UPC account, in favour of the Samsung companies defending the infringement action on EP 2 391 947. The order promptly applies the test recently laid down by the Court of Appeal for patent enforcement entities.

Question

Must a US company whose only assets are its patents provide security for costs under Art. 69(4) UPCA and Rule 158 RoP, and in what form?

Decision

The judge adopts the Court of Appeal’s test: the claimant’s financial position must give rise to a legitimate and real concern that a costs order may not be recoverable, the parties’ relative positions are not a criterion as such, particularly where the limited funding of a special purpose entity is a deliberate business choice (paragraph 1). Headwater, described as a non-practising entity with no assets other than its patents, did not substantively challenge the defendants’ submissions, its list of European patents saying nothing about their value (paragraph 3). A guarantee from a US bank is not considered adequate. As the defendants gave no costs estimate, only the amount acknowledged by the claimant is ordered (paragraph 4). Failing security, a decision by default may be given (Rule 355 RoP).

Key points for practice

• Practical point: a defendant seeking security should quantify its expected costs, or the amount may be limited to what the claimant concedes.

Provisions applied

Agreement on a Unified Patent Court

Art. 69(4)

Rules of Procedure

Rules 102.2, 158, 333 and 355

Case law cited

Court of Appeal, 17 September 2024, UPC_CoA_217/2024, UPC_CoA_219/2024 and UPC_CoA_221/2024

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.