MUNICH CENTRAL DIVISION Law and Practice Contributed by: Julia Traumann and Ulrich Blumenröder, Grünecker
Litigation Funding and NPE Activity There will likely be growth in litigation funding and activity by non-practicing entities (NPEs), who may see the UPC as a cost-effective way to assert high-value patents across a wide terri - tory. The streamlined process and high potential returns make the UPC attractive for monetisa - tion strategies. Legal Harmonisation and Tension with National Systems The UPC will contribute to the harmonisation of patent enforcement in Europe but also create tensions with national legal systems, especially in countries outside the UPC. Courts, policymak - ers, businesses and their legal advisors will need to navigate the evolving dual system carefully. . 6.3 The Future of National Patent Litigation The introduction of the UPC has led to a sig - nificant decline in the number of new patent lawsuits filed before German national courts. In 2023 alone, the German courts specialising in patents recorded a 23.6% drop in new cases compared to the previous year, with only 601 new lawsuits filed according to data published by JUVE. This downward trend continued into 2024. At the same time, key courts have scaled back their capacity – most notably, the Court of Appeals Düsseldorf, which dissolved one of its patent senates. However, a more nuanced perspective is neces - sary. In particular, the District Court Munich has maintained its role as a major forum for patent litigation and continues to attract prominent cas - es, such as (NPE) Tulip v Sunwoda, concerning car battery technology, and Dish v Aylo, involv - ing adaptive video streaming.
– is that, at the outset of the hearing, the pre - siding judge or the panel will provide introduc - tory remarks that outline the main issues. As mentioned in the foregoing, those remarks will include the panel’s preliminary views and high - light specific issues that the panel considers particularly relevant. This appears to be useful in conducting and presiding over oral proceed - ings. Further, the CD Munich appears to be will - ing to facilitate a potential settlement of a dis - pute between the parties. In one case that the authors know of, the CD Munich offered to keep a date and time already scheduled for the interim conference for an informal discussion with the parties, to explore whether a settlement is within reach. 6.2 Future Trends In the authors’ opinion, the most significant trends are likely to be the following. Increased Caseload and UPC Maturity The UPC is likely to see a steady rise in litiga - tion activity as more patentees and litigants gain confidence in the system. As the court delivers more judgments, a growing body of case law will bring greater predictability and legal certainty. The existence of case law will encourage wider participation, especially from parties that initially opted out and were reluctant. With this trend, a shift from national litigation to UPC actions may appear. SEP and FRAND Cases at the UPC The UPC is expected to become a major forum for standard-essential patent (SEP) litigation and FRAND (fair, reasonable and non-discriminatory) licensing disputes. With its pan-European reach, the UPC offers a powerful tool for SEP holders to enforce licensing programmes across multiple markets simultaneously.
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