IP Litigation in the Courts of Düsseldorf

IP IP LitigationLitigation in in thethe CourtsCourts of of DDüüsseldorfsseldorfJens Jens KKüünzelnzel, LL.M., LL.M.

KRIEGER GENTZ MES & GRAF v. der GROEBENKRIEGER GENTZ MES & GRAF v. der GROEBENMarchMarch 19, 200419, 2004

Joint Seminar of Joint Seminar of PolishPolish and German and German GroupsGroups of of AIPPIAIPPI

KRIEGER GENTZ MES & GRAF v. der KRIEGER GENTZ MES & GRAF v. der GROEBENGROEBEN

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IntroductionIntroduction//OutlineOutline

Basic Basic factsfacts of IP of IP litigationlitigation in in DDüüsseldorfsseldorfFocus on Patent Focus on Patent LitigationLitigation

1.1. GenerallyGenerally: German : German courtcourt systemsystemand and howhow patent patent litigationlitigation fitsfits intointo itit

2.2. SomeSome statisticsstatistics establishingestablishingsignificancesignificance of Dof Düüsseldorf on sseldorf on thetheEuropean European stagestage


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IntroductionIntroduction//OutlineOutline

3.3. IdentifyIdentify factorsfactors forfor high high regardregard and and effectivenesseffectiveness of Dof Düüsseldorf patent sseldorf patent litigationlitigation

4.4. Basic Basic factsfacts on on litigationlitigation concerningconcerningotherother IP IP rightsrights in Din Düüsseldorf sseldorf ((copyrightscopyrights, , trademarkstrademarks, , designsdesigns as as well as unfair well as unfair competitioncompetition))


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1. Patent 1. Patent mattersmatters insideinside thethe German German courtcourt systemsystem

UnderstandingUnderstanding of of systemsystem isis a a prepre--conditioncondition forfor understandingunderstanding thetheeffectivenesseffectiveness of of thethe DDüüsseldorf sseldorf procedureprocedure


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Patent Patent mattersmatters areare dealt dealt withwith bybyGerman German ordinaryordinary civil civil courtscourtsAlmost all German Almost all German statesstates havehavecreatedcreated specialisedspecialised Patent Chambers Patent Chambers withwith exclusiveexclusive jurisdictionjurisdiction in in thethestatestate12 German Patent Chambers 12 German Patent Chambers existexistnationwidenationwide


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DDüüsseldorf sseldorf DistrictDistrict Court Court accomodatesaccomodates oneone of of thesethese specialisedspecialisedpatent patent courtscourts ((actuallyactually twotwoindependent independent chamberschambers))Ratio of Ratio of exclusiveexclusive jurisdictionjurisdiction: : ConcentrationConcentration of of knowledgeknowledge and and experienceexperienceJurisdictionJurisdiction forfor thethe respectiverespective statestate


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Patent Patent ChamberChamber DDüüsseldorf (4a and sseldorf (4a and 4b Chambers) has 4b Chambers) has statewidestatewideexclusiveexclusive jurisdictionjurisdiction in (in (i.ai.a.).)

a)a) Patent and Patent and utilityutility modelmodel mattersmatters,,b)b) EmployeeEmployee‘‘ss inventioninvention casescases,,c)c) Plant Plant protectionprotection casescases,,d)d) Unfair Unfair competitioncompetition ((technicaltechnical

productsproducts))


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e)e) Antitrust Antitrust casescases, as far as , as far as theytheyoriginateoriginate fromfrom licenselicense agreementsagreementsoverover thesethese IP IP rightsrights oror fromfromtrademarktrademark licenselicense agreementsagreements


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InfringementInfringement casescases areare technicallytechnicallycivil civil casescasesBothBoth partiesparties havehave to to bebe representedrepresentedbyby a German a German attorneyattorney at at lawlaw ((mostlymostlyspecialisedspecialised withwith experienceexperience))ParticipationParticipation of patent of patent attorneyattorneyhighlyhighly recommendedrecommendedJudgesJudges areare lawyerslawyers, no , no technicaltechnicalexpertsexperts


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TaskTask of of attorneysattorneys isis to to „„translatetranslate““ thethetechnicaltechnical problemsproblems to to thethe judgesjudgesOne One reasonreason forfor specialisationspecialisation::JudgesJudges becomebecome „„trainedtrained““ to to understandunderstand technicaltechnical setssets of of factsfacts


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Patent Patent chamberschambers onlyonly havehavejurisdictionjurisdiction to to decidedecide infringementinfringement, , notnot validityvalidity, of IP , of IP rightsrights, in , in particularparticularpatentspatentsTwoTwo--columncolumn oror „„dualdual““ systemsystemessential essential forfor thethe German patent German patent litigationlitigation systemsystem


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InfringementInfringement mattersmatters dealt dealt withwith bybyordinaryordinary civil civil courtscourts likelike DDüüsseldorfsseldorfQuestionsQuestions of of validityvalidity areare domaindomain of of thethe Federal Patent Court and Federal Patent Court and thetheoppositionopposition boardsboards at at thethe grantinggrantingauthoritiesauthorities


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Split in Split in competencescompetences has grave has grave consequencesconsequences ((substantivesubstantive patent patent lawlaw andand litigationlitigation procedureprocedure))EnsuresEnsures, in , in effecteffect, , concentrationconcentration on on infringementinfringement


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Dual Dual systemsystem essentiallyessentially differsdiffers fromfromtreatmenttreatment of patent of patent litigationlitigation in in otherotherjurisdictionsjurisdictionsE.gE.g. London High Court (. London High Court (ChanceryChanceryDivision, Patents Court) Division, Patents Court) ––counterclaimscounterclaims forfor declarationdeclaration of of nullitynullity


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationDDüüsseldorf Patent Chambers: sseldorf Patent Chambers: incomingincoming casescases

1.1. 20012001--2003 on 2003 on averageaverage approxapprox. 600 . 600 newnew casescases

2.2. 2003: absolute 2003: absolute officialofficial figurefigure 545 545 casescases

3.3. Not all of Not all of themthem infringementinfringement actionsactions


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigation

4.4. EstimateEstimate: 250 to 300 patent : 250 to 300 patent infringementinfringement actionsactions per per yearyear((includingincluding utilityutility modelsmodels and and specifiedspecified damagesdamages claimsclaims))

London High Court/Patents London High Court/Patents CountyCountyCourt:Court: incomingincoming casescases

1.1. DDüüsseldorf sseldorf figurefigure threethree timestimes higherhigher


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigation

2.2. Report EPLA Nov. 2001 (Report EPLA Nov. 2001 (basedbased on on casescases 19901990--1999 on 1999 on averageaverage): 100 ): 100 patent patent casescases per per yearyear ((notnot all of all of themthem infringementinfringement actionsactions))

Paris Court: Paris Court: incomingincoming casescases1.1. Report Report VeronVeron Nov. 2001 (1990Nov. 2001 (1990--

1999 1999 averageaverage))2.2. 118 118 infringementinfringement actionsactions per per yearyear


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationDDüüsseldorf Patent Chambers: sseldorf Patent Chambers: casescasesheardheard and and decideddecided

1.1. BetweenBetween ½½ and and ¾¾ of of incomingincomingcasescases heardheard and and decideddecided eacheach yearyear

2.2. Ranging on Ranging on averageaverage betweenbetween 180 180 and 225 and 225 hearingshearings and and decisionsdecisions p.ap.a..


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationLondon High Court: London High Court: casescases heardheardand and decideddecided

1.1. CasesCases heardheard in 2003: in 2003: approxapprox. 30. 302.2. CasesCases scheduledscheduled forfor hearinghearing in in

2004: 14 (2004: 14 (statusstatus: : MarchMarch 18, 200418, 20043.3. NumberNumber of of judgmentsjudgments belowbelow thesethese

figuresfigures4.4. Nov. 2001 EPLA Nov. 2001 EPLA reportreport: 2/3 of : 2/3 of

casescases settledsettled


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationParis Court: Paris Court: casescases heardheard and and decideddecided

1.1. VeronVeron reportreport Nov. 2001: 108 Nov. 2001: 108 judgmentsjudgments on on averageaverage in in yearsyears1990 to 19991990 to 1999


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationDDüüsseldorf, London, Paris ranging sseldorf, London, Paris ranging beforebefore ItalianItalian, , SpanishSpanish and and otherotherEuropean European venuesvenuesNot Not yetyet sufficientsufficient informationinformation on on Eastern European patent Eastern European patent litigationlitigationfiguresfigures


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationTwoTwo Chambers Chambers decidingdeciding patent patent mattersmatters in Din Düüsseldorf, 2nd sseldorf, 2nd ChamberChamberaddedadded in 2001in 2001still still numbernumber of of heardheard and and decideddecidedcasescases per per yearyear impressiveimpressiveApproxApprox. . twotwo to to threethree oral extensive oral extensive oral oral hearingshearings per per weekweek per per ChamberChamber


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2. 2. FactsFacts on on thethe significancesignificance of of DDüüsseldorf in patent sseldorf in patent litigationlitigationWillingnessWillingness of Dof Düüsseldorf sseldorf judgesjudges to to adhereadhere to to selfself--imposedimposed rigidrigid time time scheduleschedule importantimportant factorfactor


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigationa)a) General General charactercharacter of civil of civil procedureprocedure

in Germanyin Germany•• StartingStarting point: civil point: civil procedureprocedure

essentiallyessentially reliesrelies on on writtenwrittenpreparationpreparation

•• WrittenWritten briefsbriefs shapedshaped and and guidedguidedbyby statutorystatutory rulesrules

•• RulesRules promotepromote concentrationconcentration and and comprehensivenesscomprehensiveness of of presentationpresentation


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• ConcentrationConcentration promotespromotes

effectivenesseffectiveness in oral in oral hearingshearings•• ComparisonComparison: London (UK) : London (UK) procedureprocedure

mainlymainly reliesrelies on oral on oral presentationpresentation(patent (patent casescases betweenbetween twotwo to ten to ten daysdays, , sometimessometimes moremore))


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• StatutoryStatutory proceduralprocedural rulesrules ensureensure

thatthat-- All All argumentsarguments areare presentedpresented in in

writtenwritten form (form (comprehensivecomprehensive briefsbriefs))-- To To bebe submittedsubmitted withinwithin tighttight courtcourt--

fixedfixed deadlinesdeadlines, , nonnon--submittancesubmittancesanctionedsanctioned byby riskrisk of of preclusionpreclusion


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• MeticulousMeticulous writtenwritten preparationpreparation isis

oneone prepre--conditioncondition forfor DDüüsseldorf sseldorf practicepractice to to usuallyusually decidedecide withoutwithoutexpertexpert


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigationb)b) TwoTwo--columncolumn, , oror „„dualdual““ systemsystem in in

GermanyGermany•• SeveralSeveral consequencesconsequences in in termsterms of of

procedureprocedure and and substantivesubstantive patent patent lawlaw::

-- No No directdirect defensedefense of of invalidityinvalidity of of patentpatent


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation-- ImplicitImplicit examinationexamination byby infringementinfringement courtcourt

cancan onlyonly bebe mademade throughthrough a a motionmotion to to suspendsuspend duedue to to pendingpending nullitynullityactionaction//oppositionopposition

-- ReluctanceReluctance to to suspendsuspend in Din Düüsseldorf sseldorf -- Rationale: Grant of patent, and Rationale: Grant of patent, and thethe rightsrights

conferredconferred on on ownerowner, , wouldwould in in effecteffect bebedefeateddefeated ifif suspensionsuspension regularregular procedureprocedure, , no no jurisdictionjurisdiction of civil of civil courtscourts


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation-- AnotherAnother consequenceconsequence of of splitsplit in in

competencescompetences: : „„FormsteinFormstein--defensedefense““limitedlimited to to casescases of of allegedalleged equivalentequivalentinfringementinfringement

-- LiteralLiteral infringementsinfringements mustmust notnot bebedefendeddefended byby allegationallegation thatthat attackedattackedproductproduct was was obviousobvious fromfrom priorprior artart

-- OtherwiseOtherwise de factode facto decisiondecision on on patentabilitypatentability ((outsideoutside of of jurisdictionjurisdiction))


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• ExceptionException: : utilityutility modelsmodels and and designsdesigns

cancan bebe evaluatedevaluated byby Civil Civil CourtsCourts likelikeDDüüsseldorfsseldorf

•• No No systematicsystematic contradictioncontradiction withwith splitsplitin in competencescompetences as as thesethese IP IP rightsrightshavehave notnot beenbeen examinedexamined priorprior to to registrationregistration


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigationc)c) CostCost--friendlyfriendly patent patent litigationlitigation in in

GermanyGermany•• Special Special statutorystatutory remunerationremuneration

systemsystem forfor attorneysattorneys (BRAGO)(BRAGO)•• FeesFees fixedfixed in in relationrelation to to valuevalue of of

disputedispute•• FeesFees comparativelycomparatively moderatemoderate


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• Also: Also: StatutoryStatutory reimbursementreimbursement claimclaim

forfor winningwinning party in civil party in civil lawsuitslawsuits•• ReimbursementReimbursement limitedlimited to moderate to moderate

BRAGO BRAGO feesfees•• RiskRisk of of losinglosing a a lawsuitlawsuit cancan bebe

calculatedcalculated beforehandbeforehand•• OwnOwn attorneysattorneys‘‘ costscosts cancan bebe higherhigher


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• ExampleExample forfor comparativelycomparatively moderate moderate

feesfees: : -- A A greatgreat partpart of patent of patent casescases in in

DDüüsseldorf sseldorf areare filedfiled withwith a a valuevalue of of EUR 500,000.EUR 500,000.--

-- CostCost riskrisk involvinginvolving attorneysattorneys and and patent patent attorneysattorneys feesfees as well as as well as courtcourt feesfees: : approxapprox. EUR 35,000.. EUR 35,000.----


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• Remuneration Remuneration systemsystem advantageousadvantageous

eveneven forfor hugehuge companiescompanies withwithnecessitynecessity to plan to plan litigationlitigation budgetsbudgets

•• CostsCosts moderate moderate especiallyespecially in in comparisoncomparison to US and UK to US and UK litigationlitigation


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigationd)d) EducationEducation of Dof Düüsseldorf sseldorf judgesjudges in in

patent patent mattersmatters•• UniqueUnique trainingtraining of Dof Düüsseldorf sseldorf

judgesjudges•• Service in Service in thethe firstfirst instanceinstance•• Service on Service on thethe Patents Senate of Patents Senate of

Court of AppealCourt of Appeal•• ManyMany judgesjudges havehave servedserved in Federal in Federal

SupremeSupreme Court (Court (judicialjudicial clerksclerks))


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• ManyMany DDüüsseldorf sseldorf judgesjudges havinghaving

servedserved in in thethe Patent Patent ChamberChamber havehavebecomebecome Federal Federal SupremeSupreme Court Court judgesjudges and and areare still still servingserving todaytoday

•• ExceptionalExceptional trainingtraining „„withinwithin thethesystemsystem““ addsadds to to reliabilityreliability and and qualityquality of Dof Düüsseldorf sseldorf decisionsdecisions


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigatione)e) DDüüsseldorf sseldorf procedureprocedure –– SpeedSpeed•• All All judgesjudges subordinatesubordinate themselvesthemselves

to a to a selfself--imposedimposed rigidrigid time time scheduleschedule uniqueunique on on thethe European European patent patent litigationlitigation stagestage


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• ApproxApprox. . sixsix weeksweeks afterafter filingfiling writtenwritten

complaintcomplaint oror serviceservice respectivelyrespectively: : First oral First oral hearinghearing

•• First First hearinghearing onlyonly a formal a formal oneone, no , no discussiondiscussion on on meritsmerits of of casecase

•• OnlyOnly thethe motionsmotions areare submittedsubmitted, a , a date date forfor extensive extensive hearinghearing isis fixedfixedand and deadlinesdeadlines of of threethree monthsmonths arearesetset


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• Extensive Extensive hearinghearing roughlyroughly 66--9 9

monthsmonths afterafter firstfirst hearinghearing•• First First InstanceInstance decisiondecision in Din Düüsseldorf sseldorf

patent patent infringementinfringement actionsactions afterafterapproxapprox. 9. 9--12 12 monthsmonths ((withoutwithoutexpertexpert‘‘ss appointmentappointment))

•• WrittenWritten preparationpreparation•• All All casescases internallyinternally debateddebated in in thethe

weekweek priorprior to extensive to extensive hearinghearing


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• „„VotumVotum““ isis preparedprepared formingforming thethe

preliminarypreliminary basisbasis forfor thethe decisiondecision•• Hearing Hearing servesserves to to identifyidentify thethe crucialcrucial

aspectsaspects on on whichwhich bothboth attorneysattorneys‘‘attentionattention shouldshould bebe focussedfocussed in in pleadingspleadings

•• MostlyMostly: : contestedcontested featuresfeatures of of thethepatent patent claimclaim


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• DecisionDecision grantedgranted approxapprox. . threethree

weeksweeks afterafter extensive oral extensive oral hearinghearing, , writtenwritten decisiondecision servedserved fourfour weeksweeksafterafter thatthat ((sevenseven weeksweeks afterafter oral oral hearinghearing))

•• MostlyMostly: : JudgmentsJudgments, , notnot ordersorders to to taketake evidenceevidence

•• ReluctanceReluctance in in thethe firstfirst instanceinstance to to hearhear expertexpert‘‘ss opinionopinion


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigation•• Court of Appeal in second Court of Appeal in second instanceinstance

notnot as as reluctantreluctant to to hearhear expertsexperts•• EitherEither plaintiffplaintiff securedsecured byby firstfirst

instanceinstance judgmentjudgment, , oror plaintiffplaintiffactuallyactually seeksseeks expertexpert‘‘ss opinionopinion afterafterlosinglosing thethe firstfirst instanceinstance


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3. Main 3. Main FactorsFactors forfor high international high international regardregard of Dof Düüsseldorf patent sseldorf patent litigationlitigationf)f) WillingnessWillingness of Dof Düüsseldorf sseldorf judgesjudges to to helphelp

enforcingenforcing patentspatents•• WithinWithin legal legal boundariesboundaries of of statutestatute--

conformingconforming constructionconstruction of patent of patent claimsclaims•• EquivalenceEquivalence: : PerhapsPerhaps a a preparednesspreparedness to to

construeconstrue patent patent claimsclaims so as to so as to covercover as as muchmuch „„deviationsdeviations““ as as cancan possiblypossibly bebebroughtbrought in in accordanceaccordance withwith claimclaim


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4. 4. PreliminaryPreliminary injunctionsinjunctions in patent in patent mattersmatters

PreliminaryPreliminary InjunctionInjunction isis sharpestsharpestswordsword of patent of patent ownerownerStill Still notnot numerousnumerous injunctionsinjunctions in in patent patent mattersmatters, , butbut recentlyrecently moremoreoftenoften grantedgranted


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Long Long standingstanding prepre--conditionsconditions thatthata)a) bothboth infringementinfringement and and validityvalidity

withoutwithout reasonablereasonable doubtdoubtb)b) technology technology notnot tootoo difficultdifficultc)c) InfringementInfringement mustmust bebe easilyeasily

establishedestablishedd)d) BalancingBalancing of of partiesparties‘‘ interestsinterests in in

favourfavour of of plaintiffplaintiff//applicantapplicant


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e)e) casecase mustmust bebe urgenturgent ((„„specialspecial interestinterest to to bebe grantedgranted an an injunctioninjunction““))

RecentRecent experienceexperience showsshows: In : In principleprincipleDDüüsseldorf sseldorf courtcourt grantsgrants injunctionsinjunctions ififinfringementinfringement and and validityvalidity of patent of patent cancanbebe establishedestablished, and , and urgencyurgency cancan bebeshownshownStandards Standards maybemaybe higherhigher ifif thethe valuevalue isishighhigh


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5. 5. OtherOther IntellectualIntellectual PropertyPropertyRightsRights

FourFour specialisedspecialised Chambers Chambers forfortrademarktrademark, , designdesign and unfair and unfair competitioncompetition casescasesJudgesJudges withwith yearsyears of of experienceexperience in in thesethese mattersmatters12th Civil 12th Civil ChamberChamber: : ExclusiveExclusivestatewidestatewide jurisdictionjurisdiction on on copyrightcopyrightinfringementinfringement mattersmatters

IP Litigation in the Courts of Düsseldorf

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