The Court of Appeal: National and UPC Revocation Proceedings between the Same Parties Cannot Run in Parallel

In an order dated September 17, 2024, the Court of Appeal of the Unified Patent Court overturned a previous order from the Court of First Instance, addressing critical issues surrounding jurisdiction and lis pendens under the Brussels I recast Regulation. This decision, marked under reference numbers APL_26889/2024 and UPC_CoA_227/2024, provides insights into the interplay between national courts and the Unified Patent Court (UPC) during the transitional period stipulated by Article 83 UPCA. We previously discussed the first instance's order in a prior blog entry.

Context

The order emerged from concurrent revocation proceedings involving a patent owned by Mala Technologies LTD. Specifically, after Nokia Solutions initiated a revocation action at the German Federal Patent Court (before the UPCA entered into force), the case continued to be pending, now at the appeal stage before the Federal Court of Justice.

Core Issues and Court's Interpretation

Central to the dispute was whether Article 71c(2) of the Brussels I recast Regulation mandates that its provisions apply during the transitional period when proceedings are pending before both the UPC and a national court. The Court of Appeal clarified this issue, emphasizing the broader objectives of Articles 29 to 32 of the Brussels I recast Regulation aimed at minimizing parallel proceedings and preventing conflicting judgments across Member States. In overturning the first instance's decision, the Court held that these objectives must be robustly upheld, even if the proceedings in national courts started before the transitional period – which was decisive for the first instance in rejecting the request to stay the proceedings.

The CoA ordered to stay the proceedings but—note—did not follow the request of the patent owner to reject the UPC revocation action as inadmissible.

Key Takeaways

  • National and UPC revocation actions (covering the same territory) cannot run in parallel between the same parties; also not if the national action was brought before the UPCA entered into force.
  • A later filed UPC action is not inadmissible but must be stayed in light of pending national proceedings.